Technical stock picks: Vaishali Parekh recommends THESE two stocks to buy, eyes over 15% potential upside on TP

The NSE benchmark logged its best week since early December, while the Sensex recorded its best week in nearly two years. The recovery rally on Wednesday and Thursday came as domestic buying overpowered foreign sales, and clarity emerged regarding PM-elect Modi and his allies coming to power.

Also Read: Food inflation bites Indian economy: RBI sees uptick in vegetable prices; monsoon key determinant of relief

The Nifty added 3.4 per cent this week, while the Sensex rose 3.7 per cent, recouping all losses made on Tuesday after Prime Minister Narendra Modi’s National Democratic Alliance (NDA) won the general elections by a surprisingly slim majority, defying the bullish predictions of all exit polls.

The Sensex hit its fresh all-time high of 76,795.31 during the session before ending at 1,619 points, or 2.16 per cent, higher at 76,693.36 on Friday, with all components in the green. Nifty 50 closed 469 points, or 2.05 per cent, higher at 23,290.15, with only two stocks on June 7.

Stocks to buy

Coming to the stocks that investors can buy, Vaishali Parekh recommended the following two technical picks:

Tata Motors

Buy Tata Motors at ₹996; Upside Potential of 14.90 per cent at Target Price ₹1,100; Stop Loss: ₹917 at five per cent

At a current market price (CMP) of ₹996, Parekh has set the target price for Tata Motors at ₹1,100 and sees a potential upside of 14.90 per cent on the auto stock. ‘’The stock has indicated descending channel breakout above 947 levels and has moved past the significant 50EMA level of 960 zone to improve the bias,” said the Prabhudas Liladher expert on Tata Motors.

‘’The RSI has been hovering near the oversold zone and indicated a trend reversal to signal a buy with much upside potential visible from current levels. The stock has been underperforming for quite some time and currently, with the chart looking attractive, and risk-reward favorable, we suggest to buy the stock for an upside target of 1110 keeping the stop loss of 917,” added Parekh.

 

GHCL:

Buy GHCL at ₹494; Upside Potential of 17.40 per cent at Target Price ₹580; Stop Loss: ₹470 at 4.90 per cent

At a CMP of ₹494, Parekh has set the target price for GHCL at ₹580 and sees a potential upside of 17.40 per cent on the stock. ‘’The stock has recovered from the low made near 434 zone and has recently formed a double bottom pattern taking support near 475 zone,” said Parekh on GHCL.

‘’A pullback witnessed has improved the bias with the RSI also indicating a trend reversal to signify strength and can carry on with the positive move further ahead. Currently, with risk-reward looking favorable, we suggest to buy the stock for an upside target of 580 keeping the stop loss of 470,” she added.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.

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Published: 08 Jun 2024, 07:51 PM IST