Buy & sell ideas for June 03 from Anand Rathi: NHPC, SJVN, Campus

After peaking near the Rs 153 mark on May 22, 2024, SJVN experienced a significant downturn, with a decline of approximately 22 points, equating to roughly 14-15 per cent

NHPC
 

Since May 28, 2024, NHPC has been trading within a consolidation range of approximately 99 to 104. Recently, NHPC has broken out of this consolidation range, surpassing the upper limit of 104 and maintaining its position above this level. 

This breakout is a significant event as it suggests a potential shift in market sentiment and the beginning of a new upward trend. Additionally, technical indicators provide further bullish signals: the daily stochastics, which are used to identify overbought or oversold conditions, have shown a bullish crossover near oversold zone. 

A bullish crossover happens when the faster stochastic line crosses above the slower line, suggesting a potential increase in buying pressure. These indicators make the stock appear attractive for investors. 

 

Therefore, it is recommended to buy NHPC in the price range of Rs 105 to Rs 108. The target for this trade is set at 120, reflecting the expected upside potential. To manage risk, a stop-loss should be placed near Rs 99 based on a daily closing price.

SJVN

However, in the subsequent two trading sessions, SJVN demonstrated resilience by avoiding further drops and instead took on middle Bollinger band. Notably, in the prior trading session, there was notable buying activity observed at lower price levels, particularly from the middle Bollinger band, suggesting investor interest in purchasing the stock at these levels. 

From a technical perspective, the daily DMI indicator has given bull cross, indicating a potential shift in momentum, and presenting an attractive buying opportunity. 

Consequently, traders are advised to consider buying SJVN within the range of Rs 138-140, with an anticipated upside target of Rs 155, with a stop-loss placed at Rs 131 based on a daily closing price.

Campus Activewear 
 

After a period of consolidation in the approximate range of Rs 242-266, Campus Activewear has successfully broken out of a bearish trendline that had persisted for 8 months. The stock is now comfortably maintaining its position above this trendline, indicating a strong upward movement. 

From an indicator perspective, the weekly DMI has given bull cross, 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 274-278. The target for this upward move is set at Rs 310, with a stop-loss placed at Rs 257 based on a daily closing price.

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