Brokerages Point to Strong Technicals for Quick Returns
Leading domestic brokerage firms, including Systematix Institutional Equities and SMC Global Securities, have highlighted select stocks for potential short-term gains. Amidst current market volatility, these firms cite robust charts and sound technical parameters as reasons to consider LIC Housing Finance Ltd, Supreme Petrochem, and Edelweiss Financial Services Ltd for trading.
LIC Housing Finance: Bullish Cup-and-Handle Formation
SMC Global Securities recommends a conditional buy for LIC Housing Finance. The stock is exhibiting a bullish cup-and-handle formation on its daily chart, with a rounded base near Rs 485–490 and a subsequent recovery towards the neckline. Recent price action has seen the stock decisively cross resistance levels of Rs 560–562, supported by increasing volumes and improving Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators, signaling strengthening momentum.
- Recommendation: Conditional Buy above Rs 570
- Target Price: Rs 645-650
- Stop Loss: Rs 525
- Key Support: Rs 545–555, broader support at Rs 530–535
Edelweiss Financial Services: Renewed Buying Interest
Systematix Institutional Equities sees a significant improvement in Edelweiss Financial Services' technical structure, with clear indications of renewed buying interest on the daily chart. The stock recently formed a strong bullish candlestick, reflecting aggressive buying. It has achieved a long-term bullish breakout above Rs 132, validated by above-average trading volume. Furthermore, the stock is trading above the upper Bollinger Band and all its short-, medium-, and long-term moving averages, confirming a sustained bullish trend with a higher top–higher bottom structure.
- Recommendation: Buy in the range of Rs 135-132
- Target Price: Rs 145, Rs 154 (near-term)
- Stop Loss: Rs 122
Supreme Petrochem: Breakout from Consolidation
Supreme Petrochem Ltd is experiencing a strong bullish breakout from a prolonged rectangle consolidation pattern on its daily chart, according to SMC Global Securities. The stock had been trading between approximately Rs 680–775, indicating accumulation, before its recent sharp move above the upper boundary. Rising momentum, coupled with improving RSI and MACD, adds conviction to this breakout. Sustaining levels above the Rs 770–775 zone could pave the way for further upside.
- Recommendation: Conditional Buy above Rs 780
- Target Price: Rs 875-880
- Stop Loss: Rs 720
- Key Support: Rs 730–740, structural support around Rs 680
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.