Jigar S Patel of Anand Rathi has identified three stocks poised for potential gains, based on technical setups and strong market signals. Here’s a closer look at his stock recommendations:
1. Reliance Industries (RELIANCE)
Reliance has recently formed a triple bottom pattern near the Rs 1230 zone, alongside a bullish divergence on the Relative Strength Index (RSI) on the daily chart. This technical combination points to a potential trend reversal, signaling a buying opportunity. Patel suggests entering the stock within the Rs 1270-1300 range, with a stop-loss at Rs 1225 on a daily closing basis to mitigate risk. The target price is set at Rs 1400, offering an attractive risk-reward ratio. If the stock sustains above key support levels, it may continue its bullish momentum.
2. SBI Life (SBILIFE)
SBI Life has recently surged above its previous swing high of Rs 1485 and successfully held above this level after a retest, showcasing strong support and positive sentiment. The RSI above 60 reinforces the upward momentum. Patel recommends buying in the Rs 1520-1540 range, with a target price of Rs 1650. To manage risk, a stop-loss should be placed at Rs 1470 on a daily closing basis. This setup presents a favorable risk-reward opportunity for traders looking to benefit from the ongoing bullish trend.
3. Titan (TITAN)
Titan has been maintaining support between Rs 3285-3300 for the past few trading sessions, aligning with the Monthly Central Pivot Range (CPR), a critical level for trend reversal. Candlestick patterns, such as a doji and hammer, indicate potential buying interest, signaling a possible upward move. Patel recommends entering the stock within the Rs 3350-3370 range, with a target price of Rs 3560. A stop-loss at Rs 3260 on a daily closing basis is suggested to limit downside risk. This setup, backed by strong technical confluence, offers a promising risk-reward ratio for traders.
With these recommendations, Patel highlights opportunities for traders looking to capitalize on favorable technical indicators in the market today.
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