Stocks to buy: Here’s why Indian Hotels, GAIL and Jamna Auto are a buy
Nifty remained above 22,000 in the early hours on March 1, propelling the market upward throughout the day. The index’s consolidation breakout, coupled with sustained movement above the moving average, fueled a robust rally. Notably, the Relative Strength Index (RSI) confirmed a bullish crossover, indicating positive momentum in the market. Sentiment is optimistic for potential upward movements, with expectations of buying into dips. On the upper scale, resistance is apparent at 22,400/22,600, while support is placed at 22,200.
The Bank Nifty bulls maintained their dominance, leading the index to overcome significant hurdles with notable volumes. The current support for the index is established in the range of 47000-46900, and any pullback towards this support zone is seen as a favorable buying opportunity. There is a strong indication that the index is poised to surpass its all-time high levels, situated at the 48500 mark, in the near term.
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These are the stock recommendations from Rupak De, Senior Technical Analyst at LKP securities:
1) Buy Indian Hotels around ₹590-595 | Target: ₹640 | Stop Loss: ₹569
The stock has experienced a breakout from a flag pattern on the daily chart, indicating a notable increase in investor optimism. Furthermore, the stock has consistently traded above the crucial moving average. In the upward direction, there is a potential move towards 640, with support established at 570.
2) Buy GAIL | CMP: ₹184.50 | Target: ₹205 | Stop Loss: ₹176
The stock is exhibiting a consistent uptrend pattern with higher highs and higher lows intact on the daily chart. Currently, it is finding support at its 21-day simple moving average (SMA) situated at 180, serving as a cushion for the bulls. Additionally, the momentum indicator RSI has provided a positive crossover and is poised for a breakout from a falling trendline on the daily chart.
3) Buy Jamna Auto | CMP: ₹135 | Target: ₹160-179 | Stop Loss: ₹117
The stock has surpassed its previous swing high on the monthly chart, indicating heightened buying interest among investors. It is currently forming higher highs and higher lows on the long-term chart, signaling a bullish trend. Additionally, the stock is trading above its long-term moving average. In the medium term, there is a potential move towards 160/179, with support established at 117.
The author, Rupak De is Senior Technical Analyst at LKP Securities
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 03 Mar 2024, 09:56 AM IST
