SBI Card, SDBL, BoB; top stocks by Jigar S Patel of Anand Rathi for Oct 7

SBI Card

After peaking around 817, SBICARD saw a steep drop of nearly 78 points, marking a significant decline of around 10 per cent in its value.

Recently, it has tested a key demand zone that coincides with the 0.618 per cent retracement of its prior upward movement. Additionally, a bullish bat pattern has emerged on the daily chart near the 730 level. Based on this, we recommend going long in the 730-735 range, with a target of 810 and a stop-loss at 692 on a daily closing basis.

SDBL

SDBL reached a peak near 149 in May 2024, but since then, it has experienced a significant decline, losing approximately 44 points, which translates to a 29 per cent drop in price. This sharp decline brought the stock down to a critical support level, forming a triple bottom pattern in the range of 105-108.

The triple bottom pattern, occurring at a previous demand zone, is often considered a bullish signal, suggesting that the stock has found strong support at these levels and may be poised for a reversal. On daily scale Bullish bat pattern is seen near 110-109 which aligns with previous demand zone thus making it lucrative.

These technical developments make the stock an attractive buy candidate at current levels. Based on this analysis, we recommend going long in the price range of 110-112, targeting an upside of 132. To manage risk, a stop-loss should be placed at 101 on a daily closing basis, ensuring protection against any further downside.

 

Bank of Baroda

The nearly three-month-long bearish phase in BANKBARODA appears to be nearing its end, as a bullish pattern emerges on the daily chart. The stock has formed a triple bottom structure in the 230-235 zone, a strong reversal signal indicating that the downward trend may be exhausted.

Currently, BANKBARODA is trading around the 250 level, and the triple bottom pattern has developed near the 200-day exponential moving average (DEMA), adding further appeal to the stock at this point.

Additionally, the daily RSI (Relative Strength Index) has broken through a bearish trendline along with bull divergence, signalling a shift in momentum towards the bullish side.

Given these technical indicators, it is advised to go long on BANKBARODA in the price range of 248-250, with an upside target of 270. To manage risk, a stop-loss should be placed near 239, based on a daily closing basis.

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