 "Analysts at Angel One recommend buying these two stocks today; check why")
Given the prevailing market conditions, we are limiting our recommendations to just two stocks this week.
Stock Recommendations:
NSE Scrip: Tech Mahindra
View: Bullish
Last Close: 1480
From the April swing low near 1180 to the June peak around 1700, the stock saw a strong rally, followed by a month-long price correction. This week, after testing the 50% retracement level of that advance, prices staged a solid rebound, forming a bullish engulfing pattern on the weekly chart. The formation of this pattern at a key support zone signals a potential resumption of the uptrend.
Notably, this support aligns with the 89-WEMA, further reinforcing the bullish outlook. On the
momentum side, the RSI Smoothened has generated a fresh buy signal from the oversold territory, lending additional confirmation to the positive view.
Hence, we recommend to Buy Tech Mahindra around 1480 - 1470 | SL: 1420 | Target: 1600
NSE Scrip: Indian Bank
View: Bullish
Last Close: 651
Despite weakness in the broader banking space over the past couple of months, this stock has stood out with notable relative strength, consistently holding above its multi-month bullish breakout zone.
This week, while the overall market came under pressure, the stock gained over 4%, breaking out of consolidation and confirming a Flag pattern on the weekly chart, a classic continuation signal in an uptrend. On the momentum front, Monthly and Weekly RSI readings remain firmly above 80, underscoring strong bullish sentiment, while a pullback in the Daily RSI towards 40 offers an attractive buy-on-dips opportunity.
Hence, we recommend to Buy Indian Bank around 651 - 645 | SL: 619 | TGT: 710
(Disclaimer: Rajesh Bhosale is equity technical analyst at Angel One Ltd. Views expressed are his own.)