Jhunjhunwala stock Star Health can hit Rs 515 level in short-term, says Systematix 

Systematix Shares and Stocks (India) in a technical note on Wednesday suggested buying shares of Star Health and Allied Insurance Company Ltd for near-term upside. The Rekha Jhunjhunwala-promoted company has seen its shares rising 11.39 per cent in the past three and 36.17 per cent in the past six months. 

Systematix said the stock has exhibited strong technical momentum, confirming a bullish breakout of an Inverted Head and Shoulders pattern on the daily chart, a classic reversal formation that often signals the beginning of an upward trend. 

The breakout, it said, was accompanied by a large bullish candlestick with a wide body and above-average trading volume, underscoring strong participation from buyers and confirming the reliability of the move.

The stock settled 4.13 per cent higher on Tuesday and was up 0.22 per cent on Wednesday. Systematix said technical indicators have further strengthened the bullish bias, with the stock closing above the upper band of the Bollinger Bands on both daily and weekly timeframes, signalling a volatility breakout. 

"Additionally, the price structure and candlestick patterns across timeframes highlight the dominance of bulls, suggesting sustained momentum in the coming sessions. One can use this technical set up for Buy Star Health and Allied Insurance Company Ltd in cash market at Rs 476-Rs 472 with the stop loss of Rs 452 for targets of Rs 495 and Rs 515 levels," Systematix said.

Rekha (and late stock investor Rakesh Jhunjhunwala) owned 17.14 per cent stake in Star Health and Allied Insurance Company, as of June 30. Nuvama, meanwhile, has a ‘Buy’ and a target of Rs 490 on Star Health.