Three stock ideas by Osho Krishan of Anand Rathi: Buy Crompton, Emami

Voltas stock is consolidating near the neckline of the Inverted Head & Shoulder pattern on the daily time frame and is expected to rebound from here onwards

BUY CROMPTON | TARGET: Rs 442 | STOP LOSS: Rs 392

The stock has re-tested the recent consolidation range breakout zone and bounced from the same, suggesting it to be a strong support. At the current juncture, the stock is comfortably placed above all its major moving averages, indicating inherent strength. Even on the daily time frame, the mean of the Bollinger band has provided a strong support base, affirming the bullish stance in the counter from short to medium-term time frame.

BUY EMAMI | TARGET: Rs 590 | STOP LOSS: Rs 524

The stock is in a secular uptrend and cycle of higher highs, higher bottoms. On the daily time frame, the stock is placed well above all its exponential moving averages indicating inherent strength in the counter. On the oscillator front, 14 period RSI is surging northwards followed by the MACD which is indicating a positive crossover and thus affirming the overall bullish stance in the stock from a short to medium-term perspective.

BUY VOLTAS | TARGET: Rs 1,098 | STOP LOSS: Rs 972

The stock is consolidating near the neckline of the Inverted Head & Shoulder pattern on the daily time frame and is expected to rebound from here onwards. Also, the stock is currently placed near the mean of the Bollinger band (20, 2) suggesting strong support at near levels. Hence, from a risk-reward point of view, the stock is looking lucrative and huge upside potential could be seen in the near future.

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Osho Krishan is the Senior Manager – Equity Research, Anand Rathi Shares & Stock Brokers. Views expressed are personal.