Saturday, December 28

Stocks to buy: BPCL, Raymond Lifestyles and Ola Electric on investors' radar

Benchmark indices Sensex and Nifty ended flat in listless trading on Thursday amid a lack of near-term triggers and unabated foreign fund outflows.Stocks that were in focus include names like BPCL, which rose 1% and Raymond, which gained 1.8% and Ola Electric, whose shares fell 0.7% on Thursday.Here's what Kushal Gandhi, Technical Analyst at StoxBox, recommends investors should do with these stocks when the market resumes trading today.BPCLThe share price of BPCL has been trading sideways since the beginning of the calendar year, maintaining a broader range without providing a clear directional bias for the primary trend. Recently, the stock faced profit booking after reaching a record high of 376, resulting in a 25% correction to the critical demand zone around the 280 level.Despite this price action, it has shown resilience in holding above the established support zone. However, the latest profit booking rally has not demonstrated significant signs of recovery, nor has there been notable improvement in relative strength compared to the benchmark index, Nifty50.Therefore, we recommend refraining from purchasing the stock at its current market price under the prevailing market conditions.RaymondThe share price of Raymond is currently exhibiting a bearish trend with persistent selling pressure. Following its record high of 3100 on the listing day, the stock has consistently formed a structure of lower highs.There have been no significant indications of recovery or a trend reversal, and the shorter-term moving averages continue to act as immediate overhead resistance.Additionally, the stock is lacking relative strength compared to the benchmark Nifty50 index. Therefore, we recommend avoiding purchases of the stock at its current market price under the prevailing market conditions. Ola ElectricThe share price of Ola Electric has recently experienced a modest recovery after a significant 58% decline from its peak of 157. The price action appears to be forming a cup and handle pattern, which suggests a potential trend reversal.The handle formation, positioned above the shorter-term moving average, indicates accumulation that may lead to increased buyer demand—a positive sign. Additionally, the RSI is currently trading above the median levels without showing any divergence from the price, suggesting that further positive momentum could be on the horizon.We recommend purchasing shares of Ola Electric with a target price of 106, while maintaining a stop loss at 89.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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