Jigar S Patel of Anand Rathi recommends buying these three stocks today

From a technical standpoint, the daily chart has revealed an inverse head and shoulders pattern with a neckline at Rs 1,620 & Bajaj Finserv stock is holding steady above this level around Rs 1,640.

Bajaj Finserv

Since past few days, Bajaj Finserv has been trading in a tight range between Rs 1,565 and Rs 1,610, a phase often seen before a major price shift. It has now broken out of this range with significant trading volume, indicating growing investor interest and confidence. This breakout suggests a potentially good buying opportunity.

From a technical standpoint, the daily chart has revealed an inverse head and shoulders pattern with a neckline at Rs 1,620, and the stock is holding steady above this level around Rs 1,640. Moreover, the MACD has formed a bullish crossover just above the zero line, signalling upward momentum.

The combination of the breakout and MACD crossover points to further potential gains. Therefore, considering the technical indicators, initiating long positions in Bajaj Finserv within the Rs 1,620-1,645 range seems prudent. This entry range could lead to a target price of 1800, offering significant upside potential. To mitigate risk, a stop-loss at Rs 1,550 on a daily closing basis is recommended.

 

Titan

In the past few weeks, Titan has been in a corrective phase after reversing from bullish bat pattern on daily chart. Double bottom structure is seen on weekly scale along with massive volume activity is seen at lower levels which is a sign of bullish reversal.

Having said that, double structure is seen exactly on previous breakout range which was seen in July 2023. This level, previously a resistance, has now turned into support. Considering these factors, investors might consider buying Titan shares within the Rs 3,235-3,265 range, anticipating a potential price increase to a target of Rs 3,575.

To manage risk effectively, it is advisable to set a stop-loss order around 3090 based on daily closing prices, protecting against potential downside movements.

Aether

Recently, Aether has been in a corrective phase after breaking out from the 860 level with significant volume. Notably, the recent correction has occurred with very low volume, suggesting that bearish pressure is weakening near the 860-support level.

This level, previously a resistance, has now turned into support. Considering these factors, investors might consider buying Aether shares within the Rs 860-880 range, anticipating a potential price increase to a target of Rs 970. To manage risk effectively, it is advisable to set a stop-loss order around Rs 820 based on daily closing prices, protecting against potential downside movements.

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