SBI, Granules, M&M, L&T Finance among seven stocks that can deliver decent gains in near term

Domestic brokerage firms including LKP Securities, SMIFS, SMC Global and Ashika Stock Broking are positive on the select stocks, namely- State Bank of India, Mahindra & Mahindra, Granules India and L&T Finance and Triveni Engineering- amid the rising volatility in the domestic markets. The brokerage firms believe that these stocks are headed for a strong upside in the near-term on the basis of their technical setup. Here what the brokerage firms have to say about these counters:

Mahindra & Mahindra | Sell | Target Price: Rs 1,485-1,460 | Stop Loss: Rs 1,600
Mahindra & Mahindra (M&M) has undergone a sharp correction subsequent to the formation of a doji pattern on the daily chart. The RSI is currently in a bearish crossover and is declining. In the short term, it is possible that the stock may decline to levels around Rs 1,485-1,460. On the upper side, resistance is notable at the Rs 1,600 level.
Recommended by: Rupak De, Senior Technical analyst at LKP Securities

Granules India | Buy | Target Price: Rs 410-415 | Stop Loss: Rs 315
In a recent past, the stock of Granules India took support at its 200-days exponential moving average on weekly interval and formed a double bottom pattern around 275 levels as steady recovery has been seen in prices thereafter. At current juncture, the stock has managed to give a fresh breakout above the ascending triangle pattern visible on weekly charts. On daily charts as well, the sock can be seen trading in a rising channel with a formation of higher bottom pattern. The rise in volumes along with price action suggests a long build-up into the stock, which supports a next upswing into the prices. Therefore, one can buy the stock in the range of Rs 350-355 levels for the upside target of Rs 410-415 levels with stop loss below Rs 315 levels.
Recommended by: SMC Global

 

Central Bank of India | Buy | Target Price: Rs 63 | Stop Loss: Rs 33
After prolonged downtrend, Central Bank is finally seen breaking out an Inverse Head and Shoulder pattern with neck line placed around Rs 40 levels. Massive volume growth during the Inverse Head and Shoulder formation suggesting long-term accumulation. Steadily rising volume oscillator OBV coupled with rising ADX suggesting continuation of current bullish momentum towards Rs 62 levels. Technical setup suggesting retracement towards the neck line placed around 40 levels may again find aggressive buyers. Based on the aforementioned explanations, we recommend buying the stock on dips in the price range of Rs 46-40 for the target of Rs 63.
Recommended by: SMIFS Research

L&T Finance Holdings | Buy | Target Price: Rs 145-150 | Stop Loss: Rs 125
L&T Finance Holdings (L&TFH) is showing signs of a potential bullish breakout after a period of consolidation, as it approaches the resistance of a falling trendline. The momentum indicator, RSI, has provided a positive crossover, signaling a potential reversal in the stock's direction. Crucially, there is visible support at the Rs 125 level, which is expected to act as a cushion for the bulls. If this support holds, it may pave the way for a move towards upside targets of Rs 145 and Rs 150.
Recommended by: Rupak De, Senior Technical analyst at LKP Securities

State Bank of India | Buy | Target Price: Rs 635-640 | Stop Loss: Rs 570
On daily charts, the stock of SBI has formed a Triple bottom pattern around Rs 555 levels and took support at its 200 days exponential moving average in the recent past. After a pattern formation, the stock has given a sharp recovery as prices have been seen rising above its key resistance level of 580 after a consolidation phase. At current juncture once again a fresh breakout has been observed in a stock above the Symmetrical triangle pattern. The price momentum can be observed along with positive divergences on secondary oscillators, which suggests for next upswing into the prices. Therefore, one can buy the stock in the range of Rs 595-599 levels for the upside target of Rs 635-640 levels with stop loss below Rs 570 levels.
Recommended by: SMC Global

 

Union Bank of India | Buy | Target Price: Rs 145 | Stop Loss: Rs 55
After a prolonged down trend, Union Bank is finally seen breaking out an Inverse Head and Shoulder pattern with neck line placed around Rs 80 levels. Huge volume during the Inverse Head and Shoulder formation implying long term accumulation. Steadily rising volume oscillator OBV coupled with rising ADX suggesting continuation of current bullish momentum towards Rs 145 levels. Technical setup suggesting retracement towards the neck line placed around Rs 40 levels may again find aggressive buyers.
Based on the aforementioned explanations, we recommend buying the stock on dips in the price range of Rs 90-80 for the target of Rs 145.
Recommended by: SMIFS Research

Triveni Engineering & Industries | Buy | Target Price: Rs 440 | Upside: 15%
Share of Triveni Engineering is at the cusp of generating a breakout above the bullish pennant formation supported by strong volume signaling continuation of the up move and offers fresh entry opportunity. The stock is seen resuming its up move after a base above the recent major breakout area of last one year range of Rs 260-325. Among the oscillators the daily MACD is in uptrend and is seen sustaining above its nine periods average this validates positive bias. Hence, we expect the stock to maintain positive bias and head towards Rs 440 levels in the coming weeks.
Recommended by: Ashika Stock Broking

 

 

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