Technical Picks: Amara Raja, Bajaj Auto, JB Chemicals and other stocks analysts are betting on

SUMMARY

Indian equity benchmarks are holding near recent highs after the 30-scrip Sensex index took out the 60,000 level last week. Are there signs of fatigue yet? Analysts say profit booking at higher levels cannot be ruled out in the near term. As traders scout for opportunities in the market, analysts suggest stock bets such as HDFC Bank, HPCL, Cipla and JB Chemicals to make of the bull run.

By CNBCTV18.comSept 28, 2021 8:15:13 AM IST (Updated)

Bharat Forge: The stock is forming higher bottoms on the daily chart, and making a symmetrical triangle pattern, which indicates bullish consolidation. Buying is recommended in Bharat Forge for a target price of Rs 780 with a stop loss at Rs 740. (Analyst: Shrikant Chouhan, Kotak Securities)

Bajaj Auto: The stock has seen a breakout from the consolidation range of Rs 3,680-3,830 while holding strongly above the support zone of long-term moving average on the daily chart. The chart pattern and positioning of the oscillators are pointing towards a steady rise. Traders can initiate buying the stock in the range of Rs 3,890-3,910 for a target of Rs 4,060 with a stop loss at Rs 3,830. (Analyst: Ajit Mishra, Religare Broking)

HDFC Bank: The stock has been in an uptrend and given a major breakout above the Rs 1,600 level. Indicators MACD and RSI are suggesting the momentum in HDFC Bank shares to continue. Buying is recommended above Rs 1,605 for a target of Rs 1,720 with a stop loss at Rs 1,520. (Analyst: Ashis Biswas, CapitalVia Global Research)

Hindustan Petroleum: The stock has formed an inverted head-and-shoulder pattern and is expected to continue its bullish movement. It has taken support at the 200-day moving average line. Traders can buy above Rs 276 for a target of Rs 300 with a stop loss at Rs 244. (Analyst: Ashis Biswas, CapitalVia Global Research)

Tata Chemicals: The stock has surpassed its last record high, registered in April. The move is backed by good volumes. Buying is recommended for a target of Rs 920 with a stop loss at Rs 790. (Analyst: Manish Hathiramani, Deen Dayal Investments)

JB Chemicals and Pharmaceuticals: The stock has reversed from near its support level of a 100-day moving average. A breakout of the cup-and-handle formation is observed above the Rs 1,800 mark. Buying above Rs 1,840 is recommended for a target of Rs 2,050 with a stop loss at Rs 1,695. (Analyst: Ashis Biswas, CapitalVia Global Research)

Cipla: The stock has taken good support at the Rs 880 level in the recent correction, and bounced back. It is trading above short-term resistance at Rs 900 and can rise further to Rs 990 after crossing the Rs 960 level. Traders can buy for a target price of Rs 960 with a stop loss at Rs 870. (Analyst: Manish Hathiramani, Deen Dayal Investments)

Aarti Industries: The stock appears to be forming a corrective pattern with a lower top and a lower bottom, having rallied to the Rs 987 odd mark from Rs 840. It has completed correction at the Rs 880 level. Traders can buy Aarti Industries shares for a target of Rs 990 with a stop loss at Rs 900. (Analyst: Shrikant Chouhan, Kotak Securities)

Amara Raja Batteries: The stock has finally witnessed a short-term reversal after spending nearly nine months in a corrective phase. It has surpassed the resistance zone of a long-term moving average on the daily chart. The recent buoyancy in the auto pack is further adding to positivity in Amara Raja. Traders can initiate buying in the range of Rs 757-762 for a target price of Rs 800 with a stop loss at Rs 740. (Analyst: Ajit Mishra, Religare Broking)