JK Paper, CAMS, Khadim India: How should you trade these buzzing stocks

Domestic stock indices settled flat on Tuesday, as the fag-end selling in the index heavyweights erased all entire gains for the day. The BSE Sensex inched 3.94 points, or 0.01 per cent, up to settle at 65,220.03. The NSE Nifty added 2.85 points, or 0.01 per cent, to 19,396.45.

Select stocks such as JK Paper, Computer Age Management Services (CAMS) and Khadim India are likely to see some action in today’s trade. Here is what analysts from Axis Securities has to say on these stocks ahead of Wednesday's trading session:

JK Paper | Buy | Target Price: Rs 396-415 | Stop Loss: Rs 340
JK Paper has exhibited a compelling breakout above the notable 'falling channel' pattern at the Rs 358 levels on the weekly chart, confirming a positive bias. The stock has witnessed a surge in volumes at the break-out, indicating participation at breakout. It has formed a medium-term support and rebounded from the Rs 321-mark, representing a 50 per cent Fibonacci retracement of the rally from Rs 192-450 levels. The weekly strength indicator RSI has given a crossover above its reference line generating a ‘buy’ signal. The above analysis indicates an upside towards Rs 396-415 levels.

Computer Age Management Services | Buy | Target Price: Rs Rs 2,755-2,850 | Stop Loss: Rs 2,335
CAMS has successfully broken above a medium term 'descending triangular' pattern at the Rs 2,430 level on the weekly chart, indicating a transition towards a positive bias. The weekly 'Bollinger band' generated a ‘buy’ signal, as stock closed above the upper Bollinger Band. The stock is establishing a pattern of higher high-low on the daily chart, implying a favorable trend in the short term. The weekly strength indicator RSI is holding above its reference line and indicates positive momentum. The above analysis indicates an upside towards Rs 2,755-2,850 levels.

Khadim India | Buy | Target Price: Rs 291-310 | Stop Loss: Rs 248
Khadim India has successfully broken through the significant 'Cup and Handle' pattern on the weekly chart, surpassing the breakout level of Rs 250. It suggested that the bias may remain positive going ahead. During the pattern formation, volumes dried up but, at the breakout, there was a noticeable influx of participation. The stock has solidified a medium-term support at the Rs 215 level, experiencing a rebound that coincides with a 50 per cent Fibonacci retracement of the rally spanning from Rs 177 to Rs 252 levels. The weekly strength indicator RSI is holding above its reference line and indicates a positive momentum. The analysis indicates an upside towards Rs 291-310 levels.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today.)