These are top picks by Jigar S Patel of Anand Rathi for August 8 | News on Markets

Lodha

After reaching a peak near Rs 1,595, Lodha has experienced a significant decline, dropping nearly 450 points, which translates to a 28 per cent decrease in its price. Currently, the stock has found support at its 200-day Exponential Moving Average (DEMA). Interestingly, a bullish bat pattern has emerged precisely at this 200 DEMA support level of Rs 1,218. Given these technical indicators, we recommend taking a long position in the stock within the price range of Rs 1,200-1,220. The potential upside target is set at Rs 1,350, while a stop-loss should be placed at Rs 1,140 on a daily closing basis to mitigate risk.

After reaching a peak near Rs 7,392, BajFinance has seen a notable decline, shedding approximately 880 points, which equates to a 12 per cent decrease in its price. The stock has now found support at its historical level of Rs 6,500. Significantly, the Relative Strength Index (RSI) on the hourly chart has formed a bullish divergence near this support zone, indicating a potential reversal and making the current price levels appear attractive.

Considering these technical indicators, we recommend taking a long position in the stock within the price range of 6590-6650. The potential upside target is set at 7000, while a stop-loss should be placed at 6430 on a daily closing basis to manage risk effectively.