Buy & Sell Ideas for June 10: Top two stocks picked by Anand Rathi

UPL

After a period of consolidation in the approximate range of Rs 505-530, UPL has successfully broken out of a bearish trendline that had persisted for 5 months. The stock is now comfortably maintaining its position above this trendline, indicating a strong upward movement. 

From an indicator perspective, the weekly Stochastics has given bull cross near 60 levels, which is a positive sign for potential gains. Based on this analysis, we recommend that traders and investors consider taking a long position in the range of Rs 525-545. 

The target for this upward move is set at Rs 590, with a stop-loss placed at Rs 499 based on a daily closing price.

Divis Lab: 

In the current month, Divis lab has surpassed its previous peak i.e Rs 4,468. This breakthrough is significant as it indicates the stock has overcome previous resistance levels and is now positioned for potential further gains. 

The fact that Divis Lab has managed to sustain its price above this range reinforces the likelihood of continued upward momentum. From a technical analysis perspective, the weekly stochastic oscillator, which helps identify overbought or oversold conditions, has reversed direction at the 55 level and has shown a bullish crossover. 

This crossover occurs when the shorter-term stochastic line crosses above the longer-term line, suggesting increased buying pressure and supporting a bullish outlook. Based on these observations, it is recommended to take a long position in Divis Lab within the price range of Rs 4480-4530. 

The target for this trade is set at Rs 5,000, reflecting the anticipated upward potential. To manage risk, a stop-loss should be placed at Rs 4,260, ensuring that the position is exited if the price falls below this level to mitigate potential losses.

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Disclaimer: Jigar S Patel is a senior manager of equity research at Anand Rathi. Views expressed are his own.