Kolkata: Volatility has become a defining feature of the Indian stock market recently. In this climate of big fluctuations, many investors are looking for stocks which have the potential to give better returns in a short time. In such circumstances, brokerage house Choice Equity Broking has given buying advice on three stocks. According to the brokerage’s vice-president, technical research Sachin Gupta, the charts of Astra Microwave Products, HCL Technologies and Laurus Labs are currently indicating a strong bullish trend. Strong technical setup, increasing buying and positive momentum are being seen in these three stocks.
Market price (July 24): Rs 1,807.00, up 1.34%
According to Choice Broking, the daily chart for Astra Microwave Products Ltd. continues to show a strong bullish trend. The stock is consistently forming a pattern of higher highs and higher lows, which is considered a strong bullish signal. Furthermore, it is trading above its long-term moving average, indicating continued buying interest. Following the recent rally, the stock consolidated for a while and resumed its upward momentum in Friday’s trading session.
This indicates that the long-term uptrend remains intact. The brokerage also noted that the OBV indicator has reached a new high, indicating continued accumulation in the stock. Choice Broking’s recommendation is that investors can buy around Rs 1,813, with a stop loss of Rs 1,740 and a target of Rs 1,950.
Market price (July 24): Rs 1,269.00, up 1.95%
HCL Technologies or HCL TECH posted a strong bullish breakout on the daily chart. The stock closed above the key resistance level of Rs 1,257, which is being considered a signal for fresh buying in the market. According to brokerages, the stock’s RSI is currently at 67.01. This indicates strong momentum, while still remaining below the overbought zone. This means the stock has potential for further upside.
Experts believe that as long as HCL TECH remains above Rs 1,257, its bullish structure is likely to remain intact. Therefore, a buy on dips strategy could be considered. The brokerage has a Buy target around Rs 1,271, a stop loss of Rs 1,230 and a target of Rs 1,350.
Market price (July 24): Rs 1,609.00, 2.60%
Laurus Labs is the third stock this morning. On the daily chart, the stock is forming a pattern of consecutive higher highs and higher lows, indicating a strong uptrend. The stock is trading above its 100-day and 200-day moving averages, indicating long-term strength. Furthermore, trading volume has remained strong during the recent rally, reflecting growing investor interest.
During Friday’s trading session, the stock formed a bullish engulfing candlestick pattern, which is considered a strong bullish signal in technical analysis. This increases the potential for further upside in the stock in the near future. The brokerage has a Buy recommendation around Rs 1,601, with a stop loss of Rs 1,550 and a target of Rs 1,700.
Experts point out that for all investments one must keep in mind the stop loss level.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, InvITs and any form of alternative investment instruments and crypto assets.)
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Avijit Ghosal has been writing on topics of business, industry and investment for the past three decades. He also writes on the broad economy, infrastructure and issues in banking. He has worked for economic dailies such as the Business Standard, The Economic Times, business magazines such as Business Today, English broadsheet the Hindustan Times and Bengali daily Anandabazar Patrika before joining TV9 Network.