 "Power Grid, Jubilant FoodWorks, Divi's: Top 3 technical picks for May 9")
Power Grid
In the current market scenario, a significant event is unfolding within Power Grid. Analysis of its daily chart reveals the emergence of a bullish piercing candlestick pattern, a crucial signal indicating potential upward momentum.
This pattern's occurrence aligns precisely with the daily middle Bollinger band. This confluence of factors serves to bolster positive sentiment surrounding PowerGrid, suggesting a favourable outlook for the stock.
Furthermore, examining the indicator dynamics, it is observed that the hourly stochastic oscillator has ventured into the overbought territory. This condition typically implies an underlying bullish bias within the stock's movement.
Consequently, market participants may consider initiating long positions within the price range of Rs 300-303, with a target set at Rs 320. It's prudent to manage risk by placing a stop-loss order near Rs 294 on a daily close basis.
Jubilant FoodWorks
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Jubilant FoodWorks has two key technical analysis signals: a bull divergence on the daily Moving Average Convergence Divergence (MACD) indicator and a violation of a bearish trend line that had been in place for 3-4 months.
A bull divergence occurs when the stock price forms lower lows while the MACD indicator forms higher lows, indicating a potential reversal from a downtrend to an uptrend.
The breach of the bearish trend line suggests a potential shift in the stock's direction from bearish to bullish. Based on these signals, we advise investors / traders to "go long" in Jubilant FoodWorkswithin the price range of Rs 470-480 per share. Additionally, an upside target of Rs 550 per share, indicating the potential profit opportunity.
To manage risk, a stop-loss is advised to be placed near Rs 438 per share, on a daily closing basis
Divi's Laboratories Limited
An important development is occurring within Divi's Laboratories. Upon analysing its daily chart, it becomes apparent that a bullish piercing candlestick pattern has emerged, a significant signal suggesting the potential for upward momentum.
Notably, this pattern coincides precisely with the daily middle Bollinger band, reinforcing the positive sentiment surrounding Divi's Laboratories and indicating a favourable outlook for the stock. Additionally, a review of the indicator dynamics reveals that the hourly stochastic oscillator has entered the overbought territory, a condition typically associated with a bullish bias in the stock's movement.
Consequently, investors may consider opening long positions within the price range of Rs 3,950-3,900, with a target price set at Rs 4,300. It is prudent to mitigate risk by implementing a stop-loss order near Rs 3,810 on a daily closing basis. This analysis, grounded in technical indicators and market sentiment, provides valuable insights for potential investment decisions in Divi's Laboratories.
(Jigar S Patel is senior manager of equity research at Anand Rathi. Views expressed are his own)