Buy ideas for June 4: Dalmia Bharat, UPL, Aether; key levels here

Dalmia Bharat

After peaking near the 2060 mark on 04-04-2024, Dalmia Bharat experienced a significant downturn, with a decline of approximately 360 points, equating to roughly 17-18 per cent. 

However, in the subsequent two trading sessions, Dalmia Bharat demonstrated resilience by avoiding further drops and instead reversed around the middle Bollinger band. 

Notably, in the prior trading session, there was notable buying activity observed at lower price levels, suggesting investor interest in purchasing the stock at these levels. 

From a technical perspective, the daily DMI indicator has given a bull cross, indicating a potential shift in momentum, and presenting an attractive buying opportunity. 

Consequently, traders are advised to consider buying Dalmia Bharat within the range of 1830-1860, with an anticipated upside target of 2000, with a stop-loss placed at 1765 based on a daily closing price.

UPL

After a period of consolidation in the approximate range of 505-530, UPL has successfully broken out of a bearish trendline that had persisted for 5 months. The stock is now comfortably maintaining its position above this trendline, indicating a strong upward movement. 

From an indicator perspective, the weekly Stochastics has given bull cross near 60 levels, which is a positive sign for potential gains. Based on this analysis, we recommend that traders and investors consider taking a long position in the range of 520-530. 

The target for this upward move is set at 580, with a stop-loss placed at 498 based on a daily closing price.

Aether

Following a correction of roughly 60 points, equating to a notable 7 per cent downturn, Aether has shifted its course away from the prior support mark of 800. 

This support level notably coincides with the lower Bollinger band, implying a potential rebound, particularly given the bullish crossover on the stochastic indicator at the daily scale, signifying an appealing opportunity.

Consequently, investors are advised to contemplate purchasing within the range of 805-820, envisioning an upward trend with a target price of 875. To manage risk effectively, it is recommended to implement a stop-loss order near 780, centred on daily closing figures, to mitigate potential losses.

(Jigar S Patel is a senior manager of equity research at Anand Rathi. Views expressed are his own.)