Asian Granito
In addition to this technical signal, the stock has formed a pattern resembling a bullish head and shoulders. This pattern is typically considered a reliable indicator of a reversal from a downtrend to an uptrend. The breakout and pattern formation are supported by increased trading volumes, suggesting strong buying interest, and the positive alignment of momentum oscillators, which reflect increasing bullish momentum.
Given these positive technical indicators, traders are advised to buy Asian Granito within the price range of Rs 90-93. To manage risk, a stop loss should be placed at Rs 80 on a closing basis. The anticipated price targets for this trade are Rs 110.
IDFC First Bank
At this level, a bullish bat pattern has also emerged, which is a harmonic pattern that typically signals a potential bullish reversal. The confluence of these technical indicators—support at the key retracement level and the formation of the bullish bat pattern—suggests that the current price levels are favourable for buying. Therefore, it is recommended to buy the stock within the Rs 74-75 range, targeting a price of Rs 84. To manage risk, a stop-loss should be set near Rs 70 on a daily close basis.
IndusInd Bank
IndusInd Bank has recently established a strong base around the support zone of Rs 1,330-1,350, which is a key area of interest for traders. This support zone is significant because it coincides with the completion of a bullish AB=CD pattern, a popular harmonic pattern that often signals a potential reversal or continuation of an uptrend. The bullish AB=CD pattern indicates that the stock may have reached a point of exhaustion in its downward movement, making it a favorable area for buyers to step in.
(Jigar S Patel is a senior manager of equity research at Anand Rathi. Views expressed are his own.)
First Published: Aug 26 2024 | 6:27 AM IST
