Two stock recommendations from Osho Krishan of Anand Rathi

BUY LIC HOUSING FINANCE | TARGET: Rs 410 | STOP LOSS: Rs 360

LIC Housing Finance saw a huge correction in the recent period and is currently hovering near the 50 per cent Fibonacci retracement of the rally on the monthly chart. The stock has seen some resurgence in the last couple of trading sessions from the lower band of the Bollinger band (20, 2), suggesting an early sign of reversal. Even from a risk-reward perspective, the stock is placed at a lucrative zone and could be accumulated from a short to medium-term time frame.

BUY AUROBINDO PHARMA | TARGET: Rs 780 | STOP LOSS: Rs 660

Aurobindo Pharma has corrected over 35 per cent from its lifetime high and has plunged below all its major exponential moving averages. However, the stock has formed a bullish reversal ‘Hammer’ candlestick pattern at the lows on the daily chart and furthermore it is hovering at 50 per cent Fibonacci retracement post the Covid rally, suggesting a trend reversal in the counter. Even from a risk and reward perspective, the stock is placed in a lucrative zone.

======================================
Disclaimer: Osho Krishan is Senior Manager – Equity Research at Anand Rathi Shares & Stock Brokers. Views expressed are personal.