Here's why Mehul Kothari recommends buying Balkrishna Inds, HDFC Life

According to the technical analyst from Anand Rathi, Balkrishna Industries is showing immense strength on the 2-hour chart, while the weekly chart of HDFC Life indicates a sharp up move.

BUY

BALKRISIND

TARGET: Rs 2,350

STOP LOSS: Rs 2,125

Balkrishna Industries saw some healthy correction during April 2022 and has bounced above its 200-day exponential moving average (DEMA). Even in the last trading session, on the 2-hour chart the stock gave a nice triangle breakout with huge volume which is an early sign of reversal.

On the 2-hour indicator front, the 14-period RSI (relative strength index) has bounced back from 50 levels along with MACD (moving average convergence divergence) making positive crossover exactly above zero line which is also a sign of great strength.

BUY

HDFCLIFE

TARGET: Rs 625

STOP LOSS: Rs 550

In the recent past, HDFC Life has taken historical support at the top which was made in May 2018. After taking support it has bounced back followed by pair of Hammers on the weekly chart.

It seems like the stock has established its base near Rs 550 zone and is ready to move up till Rs 650 with good support seen at Rs 525. On indicator front, the weekly RSI has displayed complex structure below 30 level which is hinting some sharp up move.

(Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).