Stocks to buy: Brokerage firm Anand Rathi is bullish on four stocks based on their technical parameters and expects a decent upside potential of up to 26% in these stocks. The brokerage firm has recommended buying these stocks for a timeframe of 6 – 9 months, while maintaining stop losses.
The four technical stock picks by Anand Rathi are Gujarat Mineral Development Corporation, JSW Energy, Premier Energies and JBM Auto.
Here are the stocks to buy for medium-term:
Gujarat Mineral Development Corporation | Buy | SL: ₹210 | Target Price: ₹315
Gujarat Mineral Development Corporation (GMDC) shares saw a major breakout above the ₹230 zone in 2023. The stock rallied towards ₹500 and has now retested the breakout zone. Currently, GMCD shares are trading near the 200-week EMA (Exponential Moving Average), with a reversal candlestick pattern forming.
Anand Rathi advises traders to accumulate GMDC shares in the ₹240 – ₹250 range, with a stop-loss at ₹210, for an upside target of ₹315 in the next 6 months.
JSW Energy | Buy | SL: ₹415 | Target Price: ₹580
JSW Energy share price has corrected 49% from its peak of 804.90 and is now rebounding from the 200-weekly EMA, forming an inverse head and shoulders pattern. This bullish setup was confirmed as the stock recently broke above its neckline, signaling potential upside. A long position is advised in the ₹490 – 500 zone with a target of ₹580, while the stop-loss should be placed below ₹415 on a daily closing basis, Anand Rathi said.
Additionally, if JSW Energy stock price tests ₹445, it presents an opportunity to add more to the position. The technical structure suggests a strong recovery, making it attractive at current levels, the brokerage firm added.
Premier Energies | Buy | SL: ₹790 | Target Price: ₹1,100
Premier Energies share price has corrected from the ₹1,350+ zone and is now trading near ₹900, remaining oversold on lower time frames. Multiple bottoms are forming near the ₹800 – ₹820 zone, indicating strong support. According to Anand Rathi, a pullback in Premier Energies shares is expected once the market stabilizes.
The brokerage firm advises traders to accumulate Premier Energies shares in the ₹920 – ₹880 range, with a stop-loss at ₹790, for an upside target of ₹1,100 in the next 6 – 9 months.
JBM Auto | Buy | SL: ₹470 | Target Price: ₹650
JBM Auto share price has corrected from the ₹1,200+ zone and is now highly oversold on lower time frames. The weekly RSI is near 2020 lows, and the daily RSI shows positive divergence, indicating a potential reversal, said Anand Rathi.
It recommends to accumulate JBM Auto shares in the ₹520 – ₹540 range, with a stop-loss at ₹470 on a closing basis. The brokerage firm expects a recovery towards ₹650 in the next 6 – 9 months.
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 making any investment decisions.
