Stock picks by Nilesh Jain of Anand Rathi: Buy Adani Gas, Aarti Industries

Adani Gas stock is on the verge of a major breakout from a symmetrical triangle formation on the daily chart

BUY AARTI IND | TARGET: Rs 1,050 | STOP LOSS: Rs 970

The stock has provided a fresh breakout from its downward sloping trend line. It has also formed a strong base and consistently taking the support of its 200-DMA which is placed at 970 levels. The momentum indicator RSI has reversed from its oversold territory and MACD has provided a buy crossover on the daily scale which hints of positive momentum in the counter. So, based on the above rationale, we can expect the stock to test 1050 levels and one should keep a stop loss at its 200-DMA which is placed at 970.

BUY SAIL | TARGET: Rs 39/40 | STOP LOSS: Rs 34.5

The stock has provided a fresh breakout from its double bottom formation with a higher than average volume on the daily chart. It also surpassed its short term 21-DMA and long term 200-DMA which indicates strength in the counter. A fresh buy crossover can be seen in MACD on the daily chart whereas RSI is making a higher top and higher bottom formation. 

BUY ADANI GAS | TARGET: Rs 206 | STOP LOSS: Rs 188

The stock is on the verge of a major breakout from a symmetrical triangle formation on the daily chart. The breakout is placed at 196 levels and above that, we can expect the conservative target of around 206. It also surpassed its short term 21-DMA and long term 200-DMA which indicates strength in the counter. A fresh buy crossover can be seen in MACD on the daily chart whereas RSI is also moving higher from its oversold territory.

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Disclaimer: Nilesh Jain is Technical and Derivatives Research - Equity Research at Anand Rathi Shares and Stock Brokers. He may have positions in one or all of the above mentioned stocks. Views are personal.