Diwali 2024: BHEL, TCS, Snowman, Care Ratings are Angel One's 4 technical stock ideas 

Angel One has recommended four stocks namely Bharat Heavy Electricals Ltd (BHEL), Tata Consultancy Services Ltd (TCS), Snowman Logistics Ltd and Care Ratings Ltd, which look strong on monthly chart and can be good bets this Diwali.  

The brokearge believes the recent correction is not over yet and asked traders to avoid aggressive bets on either side and start accumulating quality propositions in a staggered manner. 

BHEL 
After an impressive rally across the entire PSU sector, a pause for consolidation was anticipated and the ongoing correction is seen as a healthy adjustment. Angel One said BHEL has now experienced three consecutive months of profit-taking and is currently hovering around the 20- EMA on the  monthly chart and the 89-EMA on the weekly chart.
Considering the broader chart structure, BHEL appears attractive for accumulation from a medium-term perspective, it said. Traders are advised to consider buying BHEL shares on declines in the range of Rs 230-220, for a target of Rs 295, with a stop-loss set at the previous resistance level of Rs 198.

Care Ratings
In a very weak broader market, the Care Ratings stock has held its positive stature, indicating a very high relative strength.

After retracing to nearly 38.2 per centof its prior up move from the levels of 400, it has formed a good base and has broken out of the  base, backed by bullish candle stick formations near its swing lows.

"The ongoing bullish phase gets further amplified by a bullish breakaway gap, above its swing highs on daily charts. The volume  on the breakout is also very high, suggesting high buying interest. The presence of current price above its major EMA’s and prominent technical indicator in bullish territory, adds strong winds of  momentum behind the stock," Angel One said.

Considering the bullish set up for the stock, it recommended a buy on declines in the Rs 1,380-1,320 band, with a stop loss of Rs 1,250 and a target of Rs 1,660.

Snowman Logistics
Angel One said the Snowman Logistics stock looks to have reversed its prior primary downtrend, indicated by a breakout above a falling trendline and a  breakout from a double bottom formation on weekly charts.

The reversal of trend is further supported by the formation of higher highs and higher lows. Additionally, volumes on the breakout,  which got retested recently, were also high, suggesting a strong breakout, the brokegrage said.

"Following a nearly threefold increase last year, the stock has experienced a price and time correction over the past three months,  indicating a consolidation of previous gains and potential for a healthy upward move. Additionally various technical indicators, are also placed favorably, which support this breakout," it said.

Considering the above factors, it advised traders to consider buying Snowman Logistics in the range of Rs 64-60, with a stop loss of Rs 47 and target of Rs 91.

TCS
The IT giant has seen decent profit-taking since mid-September 2023, correcting from levels around Rs 4,600. The stock has recently been oscillating around the 200-SMA on the daily chart, coinciding with the 61.8 per cent Fibonacci retracement of  its previous uptrend. Given these conditions, TCS presents an opportunity for short covering, with an attractive risk-reward ratio, Angel One said.

"Therefore, we recommend buying on dips in the range of Rs 4,000-3,900, setting a stop-loss at Rs 3,580, and targeting a potential upside of  Rs 4,780," it added.