Stocks to buy: Fortis, Dr. Reddy among top picks, here's why

1 week ago 6

2 min read 05 May 2024, 03:17 PM IST Trade Now

Kunal Shah

Immediate absorption is noted astatine the 22,600-22,700 zone, wherever assertive telephone penning has been observed successful the options market.

Indian banal market: The Nifty scale is showing signs of near-term bearishness arsenic it forms a treble apical signifier connected the regular chart, coupled with a bearish engulfing candle. This suggests a sell-on-rise attack successful the market. Confirmation of the treble apical signifier would necessitate follow-up selling successful the upcoming week. Immediate absorption is noted astatine the 22,600-22,700 zone, wherever assertive telephone penning has been observed successful the options market. On the downside, the scale has contiguous enactment astatine 22,300, and a breach beneath this level could accelerate the downside momentum.

Bank Nifty

The BankNifty scale faced selling unit from higher levels but maintained its uptrend, closing adjacent the contiguous enactment of 49,000. Immediate absorption is astatine 49,200, and a interruption supra could trigger short-covering moves towards 49,500 levels. Conversely, contiguous enactment lies astatine 48,800-48,700, and a breach mightiness pb to further downside towards the 48,400 mark, wherever the 20DMA is situated.

Stocks to buy

Dr. Reddy: Buy astatine ₹6330 | Target Price: ₹6600/6900 | Stop Loss: ₹6100

The banal exhibits a promising setup: a breakout from a descending trendline connected the regular chart, accompanied by a bullish candlestick. It maintains a presumption supra its 21-day moving average, indicating short-term strength. The Relative Strength Index (RSI) has besides shown a bullish crossover, residing astatine 60.

Fortis: Buy astatine ₹450 | Target Price: ₹480/500 | Stop Loss: ₹430

The banal continues to grounds a robust uptrend, maintaining higher highs and higher lows connected the regular chart. Trading supra its short-term moving mean of 20DMA astatine 438, it acts arsenic a cushion against declines. In the erstwhile trading session, volume-based buying was observed, supported by a affirmative crossover successful the momentum indicator RSI, confirming a bargain signal.

TAJ GVK Hotels and Resorts: Buy astatine ₹400 | Target Price: ₹435/450 | Stop Loss: ₹385

The banal has precocious experienced a important breakout connected the regular chart, breaking escaped from an ascending triangle signifier with a notable surge successful trading volumes. This breakout is complemented by a affirmative crossover successful the momentum indicator RSI, indicating a beardown bargain signal. With lower-end enactment situated astatine 387, providing a cushion for bullish movements, the imaginable upside targets are acceptable astatine 435 and 450.

The writer Kunal Shah is the Senior Technical & Derivative Analyst astatine LKP Securities.

Disclaimer: The views and recommendations supra are those of idiosyncratic analysts, experts and broking companies, not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 05 May 2024, 03:17 PM IST