Tata Power, NCC, Divis Labs, EID Parry: 4 stocks that look strong on technical charts

Domestic brokerage firms LKP Securities and Nirmal Bang Securities have picked up four stocks, namely- Tata Power, EID Parry India, Divis Laboratories and NCC- as their key technical picks. The brokerages believe that the technical patterns and parameters for these stocks are sound and they are poised for a strong upside in the next few weeks. Here's what the analysts said about these stocks:

EID Parry (India) | Buy above Rs 485 | Target Price: Rs 578 | Stop Loss: 458
Technically, the weekly chart suggests that after a correction phase from Rs 670 to Rs 430, EID Parry has given the breakout of downward sloping trend line on a closing basis. Daily chart indicates that stock is trading above its major important moving averages and a potential up move is expected in the coming sessions. Momentum indicator ,RSI shows positive crossover in its weekly charts. One can buy EID Parry above Rs 485, add on dips at Rs 470 for a target of Rs 578 with a strict stop loss of Rs 458.
Recommended by: Nirmal Bang Securities

Tata Power | Buy at 235 | Target Price: Rs 250-260 | Stop Loss: 220
Tata Power has experienced a significant breakout on the daily chart, accompanied by a sharp surge in volumes. The momentum indicator RSI has shown a positive crossover, confirming the strength of the stock's current uptrend. The stock is currently in a strong uptrend, characterized by higher high and higher low formations. The stock has support around the Rs 220 level, which is likely to act as a cushion for the bulls. On the upside, potential targets for the stock could be around Rs 250.
Recommended by: Kunal Shah, Senior Technical and Derivative analyst at LKP Securities

Watch: Nifty, Sensex move higher; NTPC, PowerGrid, Adani Ports among top gainers; Kotak Bank, Bajaj Finance top losers; Piramal Enterprises, MMTC, other buzzing stocks on July 31

Divis Laboratories | Buy above Rs 3,715 | Target Price: Rs 4,370 | Stop Loss: 3,490
Weekly chart suggests that stock has given a strong breakout of downward sloping channel. Divi's Laboratories is likely to witness an up move in near term. Momentum indicator, RSI is positive. Divi's Labs is well placed above all it’s important moving averages. As per the Fibonacci retracement, stock has retraced well from higher levels and currently in consolidation above 28.3 per cent, that is, Rs 3,490. One can 'buy' Divis Laboratories above Rs 3,715, add on dips at Rs 3,580 for a target of Rs 4,370 with a strict stop loss of Rs 3,490.
Recommended by: Nirmal Bang Securities

NCC | Buy at 147 | Target Price: Rs 157-160 | Stop Loss: 142
NCC has experienced a consolidation breakout on the daily chart and is currently holding above a critical moving average. The RSI indicator is showing a bullish crossover, indicating positive momentum. The stock has the potential to reach Rs 160 levels in the near term. On the downside, it has support at Rs 142, which may act as a crucial level for any corrective moves.

Recommended by: Kunal Shah, Senior Technical and Derivative analyst at LKP Securities

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