Thursday, December 26, 2024

Stocks to buy today: SAIL, Aurobindo Pharma and Piramal Enterprises on investors’ radar

Tuesday, December 24, 2024, 2:18
This news item was posted in Business category and has 0 Comments so far.

Equity indices Sensex and Nifty rebounded sharply on Monday after five days of steep decline amid value buying at lower levels and a supportive trend in global markets.Stocks that were in focus include names like SAIL, which rose 4% and Aurobindo Pharma, which gained 1% and HPCL, whose shares declined nearly 1% on Monday.Here’s what Ameya Ranadive, CMT, CFTe, Sr Technical Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today.SAILSteel Authority of India Ltd (SAIL), currently trading at Rs 121, offers an attractive risk-reward setup after a significant correction from its recent highs. The stock is consolidating near crucial support levels, with the downside risk mitigated as long as it holds above Rs 110. Technical indicators like RSI, currently at 51, show a bullish divergence, suggesting the potential for a rebound. Additionally, the ADX indicates weakening selling momentum, which supports a positive outlook.The stock has immediate resistance near Rs 126, where the 100- and 200-day EMAs converge. A breakout above this level could trigger strong upward traction, paving the way for a move toward the target of Rs 137. Given the oversold nature of the stock and its recovery potential, it is a good buy at current levels for both short- and medium-term investors. A strict stop-loss should be placed below Rs 110 to protect against any downside risk.Aurobindo PharmaAurobindo Pharma, currently trading at Rs 1,250, presents an attractive risk-reward setup. The stock has successfully reclaimed its 20-day EMA, indicating a potential shift in momentum. A bullish divergence on the RSI suggests buying interest at lower levels and the possibility of further upside. The stock has seen a steady recovery from its recent lows, with Rs 1,200 emerging as a strong support level.If the stock sustains above Rs 1,200, it is well-positioned to target Rs 1,435 in the coming months. The ADX indicates a developing trend, further supporting the likelihood of a bullish breakout. Investors looking for medium-term opportunities may consider this stock, provided the risk is managed with a stop-loss at Rs 1,200.Given the technical setup and improving momentum, Aurobindo Pharma looks like a compelling buy for those aiming to capitalize on its recovery phase. Patience is key as the stock builds strength for a potential upward move.Piramal EnterprisesPiramal Enterprises (PEL) is currently trading at Rs 1,085, displaying weakness after a channel breakdown on the daily chart. The stock has breached its 20- and 50-day EMAs, while managing to sustain above the 100-day EMA at Rs 1,082.99, highlighting a crucial support zone.The RSI is hovering near the oversold region at 34.67, indicating bearish momentum, while the ADX suggests a lack of directional strength, with the -DI (bearish indicator) dominating. The broader price structure signals that the stock is in a “no trade zone” as of now, with resistance near Rs 1,115.A sustained breakout above Rs 1,115 for a few days could pave the way for a potential rally toward Rs 1,250. Until this level is decisively breached, the stock remains weak and prone to further downside.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

You can leave a response, or trackback from your own site.

Leave a Reply