Three stock ideas by Osho Krishan of Anand Rathi: Buy Laurus Labs, Equitas

The stock of Laurus Labs is primarily in an uptrend and maintains the cycle of higher highs higher lows on all time frames

BUY LAURUS LABS LTD | TARGET: Rs 718 | STOP LOSS: Rs 632

LAURUSLAB has seen resurgence from the lower band of the Bollinger (20, 2) that has been backed by robust volumes indicating strong nearby support. The stock is primarily in an uptrend and maintains the cycle of higher highs higher lows on all time frames. At the current juncture, it has witnessed a sloping trend-line breakout in the last trading session and the placement of the counter that is above all the major exponential moving averages in the daily chart makes it quite lucrative to accumulate from a short to medium-term time frame.

BUY EQUITAS | TARGET: Rs 134 | STOP LOSS: Rs 118

EQUITAS has recently seen an outburst from range-bound movement and is currently hovering above the breakout zone. The stock is consolidating in a broad range setting up a firm base before another set of a rally. On technical parameters, the stock is comfortably placed above all its major exponential moving averages on the daily chart and has the strong support of ascending trend-line followed by the lower band of the Bollinger band affirming strength in the counter.

BUY AMARA RAJA BATTERIES LTD | TARGET: Rs 760 | STOP LOSS: Rs 690

AMARAJABAT has retraced nearly 50% of the recent rally and is placed near the previous support zone. Historically the stock has seen consolidation near the current zone that has provided proper support to the counter. In the previous week, the stock has witnessed the formation of a ‘long-legged Doji’ candle near 50% of Fibonacci retracement suggesting an early sign of reversal in the counter. Hence the weekly close is going to be crucial for the counter to see a resurgence. At present, from the risk-reward point of view, the stock is placed at an attractive level and could be accumulated from a short to medium-term perspective.

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Disclaimer: Osho Krishan is senior manager – equity research at Anand Rathi Shares & Stock Brokers. Views expressed are personal.