 "Jigar S Patel of Anand Rathi recommends buying these three stocks today")
PNB
Recently, PNB has found a support level, forming a bottom around the Rs 114-116 range. This suggests that the stock has likely reached a point where selling pressure is reducing, and buyers are stepping in. On the daily chart, a bullish divergence has been observed on RSI, indicating a potential reversal in trend from the Rs 114-116 zone. Bullish divergence occurs when the price of the stock makes a new low while RSI makes a higher low, suggesting weakening bearish momentum and a potential upward move.
Following this bottoming process, PNB has managed to break above a bearish trendline, which had been acting as a resistance level. The stock is currently maintaining its position above this trendline, signalling a shift in sentiment from bearish to bullish. As we move forward, it is anticipated that PNB will continue its upward rally. However, there might be minor pullbacks
to the Rs 122-120 level, which could provide a good buying opportunity.
to the Rs 122-120 level, which could provide a good buying opportunity.
Therefore, it is advisable to buy PNB on dips around the Rs 124 level for an upside target of Rs 145. A stop-loss should be placed around Rs 119, based on a daily closing basis.
JK Lakshmi
After reaching a peak of around 935 on June 27, 2024, JK Lakshmi Cement (JKLAKSHMI) has experienced a significant correction, dropping nearly 80 points, translating to a 9 per cent decline. Currently, the stock has found support near its 21-day Exponential Moving Average (DEMA), which also aligns with the previous upper boundary of its breakout range, making it an attractive buying opportunity. From a technical perspective, the Daily Relative Strength Index (RSI) has bounced back from the 55 level, indicating a potential positive momentum for the stock. Therefore, it is advisable to consider buying JK Lakshmi within the Rs 880-885 range, with an upside target of Rs 960 and a stop-loss at Rs 845 on a daily closing basis.
Schaeffler
Schaeffler experienced a significant decline after reaching its peak near Rs 4,950, dropping approximately 1,155 points, which translates to a substantial 23 per cent decrease in price. Currently, the stock appears to have found support around its 100-day Exponential Moving Average (DEMA), forming a double bottom pattern.
Additionally, the Relative Strength Index (RSI) on the hourly chart is showing bullish divergence, suggesting a potential reversal in the stock's momentum. In the most recent trading session, Schaeffler's stock rebounded by about 5 per cent, accompanied by a surge in trading volume.
This substantial increase in volume indicates a possible positive shift in market sentiment towards the stock. Given these technical signals, investors might consider buying the stock in the price range of Rs 4,075 to 4,150. The suggested upside target is Rs 4,400, with a stop-loss set at Rs 3,950 based on a daily closing price to manage risk.
Schaeffler experienced a significant decline after reaching its peak near Rs 4,950, dropping approximately 1,155 points, which translates to a substantial 23 per cent decrease in price. Currently, the stock appears to have found support around its 100-day Exponential Moving Average (DEMA), forming a double bottom pattern.
Additionally, the Relative Strength Index (RSI) on the hourly chart is showing bullish divergence, suggesting a potential reversal in the stock's momentum. In the most recent trading session, Schaeffler's stock rebounded by about 5 per cent, accompanied by a surge in trading volume.
This substantial increase in volume indicates a possible positive shift in market sentiment towards the stock. Given these technical signals, investors might consider buying the stock in the price range of Rs 4,075 to 4,150. The suggested upside target is Rs 4,400, with a stop-loss set at Rs 3,950 based on a daily closing price to manage risk.
(Jigar S Patel is a senior manager of equity reserach at Anand Rathi. Views expressed are his own.)