Buy & Sell, Aug 13; top stocks picked by Jigar S Patel of Anand Rathi

SAIL

Since reaching a peak of approximately Rs 175 in May 2024, SAIL has been under significant selling pressure. The stock has consistently formed lower highs and lower lows, leading to a sharp decline of 50 points, equivalent to a 29 per cent drop in its price.

Currently, SAIL is testing its 200-day Simple Moving Average (SMA), a critical technical level that also aligns with the 50 per cent retracement of the rally that began in October 2023 and extended through May 2024.

This confluence of technical factors makes the stock an attractive buy at its current levels. Additionally, the current price zone coincides with SAIL's previous breakout range, further strengthening its potential for a rebound.

 

Given these technical indicators, we recommend buying SAIL in the Rs 130-133 price range, with a target of 145. To manage risk, a stop-loss should be placed near 126 on a daily closing basis.

SBIN

After reaching a peak near Rs 889, SBI has experienced a significant decline, dropping nearly 90 points, which translates to a 10 per cent decrease in its price.

Currently, the stock has found support at its 100-day Simple Moving Average (DSMA). Interestingly, a bullish bullish pattern has emerged precisely at this 100 DSMA support level of Rs 805 approx.

Given these technical indicators, we recommend taking a long position in the stock within the price range of Rs 815-810. The potential upside target is set at Rs 865, while a stop-loss should be placed at Rs 785 on a daily closing basis to mitigate risk.

ICICIBANK

At the current juncture, ICICIBANK has found support within its previous breakout range and has maintained this level for the past three sessions.

Additionally, an Alternate Bullish BAT pattern has formed on the daily chart precisely within this support zone of Rs 1,165-1,175, making the stock an attractive buy at these levels.

This technical setup suggests a strong potential for upward movement. Therefore, we recommend buying ICICIBANK in the price range of Rs 1,165-1,175. The potential upside target is set at Rs 1250, while a stop-loss should be placed near Rs 1,130 on a daily closing basis to manage risk effectively.

(Jigar S Patel is a senior manager of equity reserach at Anand Rathi. Views expressed are his own.)