Jigar S Patel of Anand Rathi recommends buying these three stocks on Sep 30 | News on Markets | shahzadsoft tech a General Blogging Website

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3 min read Last Updated : Sep 30 2024 | 7:30 AM IST

BANKBARODA

The nearly three-month-long bearish phase in BANKBARODA appears to be nearing its end, as a bullish pattern emerges on the daily chart. The stock has formed a triple bottom structure in the Rs 230-Rs 235 zone, a strong reversal signal indicating that the downward trend may be exhausted.

Currently, BANKBARODA is trading around the Rs 250 level, and the triple bottom pattern has developed near the 200-day exponential moving average (DEMA), adding further appeal to the stock at this point.

Additionally, the daily RSI (Relative Strength Index) has broken through a bearish trendline along with bull divergence, signaling a shift in momentum towards the bullish side. Given these technical indicators, it is advised to go long on BANKBARODA in the price range of Rs 248-Rs 250, with an upside target of Rs 270. To manage risk, a stop-loss should be placed near Rs 229, based on a daily closing basis.

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SBICARD:

Following a peak near the Rs 933 level, the SBICARD underwent a significant downturn, experiencing a sharp decline of nearly 280 points, which translated to a substantial decrease of approximately 30 per cent in its overall value. However, over the course of the week, SBICARD has managed to stabilize around the 675 levels, forming a sustained support base.

Notably, during this period, a bullish ALTERNATE pattern has emerged near the 680-710 level, providing further confirmation of positive market sentiment. Additionally, analysis of the WEEKLY DMI reveals a bull CROSS , indicating a favorable outlook for the stock. Also 3 yrs long bear trend line is taken out.

Considering these factors alongside chart patterns, investors may find it prudent to consider initiating buy positions within the range of Rs 770-790, with an upside objective targeted at Rs 875. To manage risk, a stop-loss order should be set at Rs 735 on a daily closing basis, providing protection against potential downside movements

CANBK:

A triple bottom structure has formed in the Rs 102-103 range, which is a strong reversal signal, suggesting that the prolonged downward trend may be losing momentum. Currently, the stock is trading around Rs 113, with this triple bottom pattern developing near the 200-day exponential moving average (DEMA), enhancing its technical appeal.

Furthermore, the daily Relative Strength Index (RSI) has broken through a bearish trendline , indicating a shift in momentum towards the upside. Based on these favorable technical signals, it is recommended to consider a long position in CANBK within the Rs 112-113 price range, with an expected upside target of Rs 122. A stop-loss should be placed near Rs 107 on a daily closing basis to manage risk effectively.

First Published: Sep 30 2024 | 7:30 AM IST