Buy ideas for July 8: HDFC Life, Cipla, SJVN; check target prices here

HDFCLIFE:

HDFCLIFE recently gave a clean breakout on the weekly chart, signalling a potential bullish trend. Prior to this breakout, the stock had been consolidating for 2 weeks, precisely around the 200 Exponential Moving Average (EMA) on the weekly scale. This consolidation phase built a solid foundation for the subsequent breakout.

The stock managed to close above the last three weeks' high of Rs 603 and is currently positioned near the Rs 607 mark. Additionally, there have been significant violations of bearish trendlines, both in the price action and in the Relative Strength Index (RSI) on the weekly chart.

These trendline breaches, which persisted over the past six months, further reinforce the bullish outlook for HDFCLIFE. Based on this analysis, we recommend going long on HDFCLIFE within the price range of Rs 595-610, with an upside target of Rs 660. It is prudent to set a stop-loss at Rs 575 on a daily closing basis to manage risk.

CIPLA:

CIPLA recently displayed a clean breakout on the DAILY chart, signalling a potential bullish trend. Prior to this breakout, the stock had been consolidating for 7 days, precisely on the 50-day Exponential Moving Average (DEMA) on the daily scale. This consolidation phase built a solid foundation for the subsequent breakout.

The stock managed to close above the last seven days high of Rs 1500 and is currently positioned near the Rs 1510 mark. Additionally, daily RSI has reversed from 40 levels and currently placed near 55 levels which is positive sign for CIPLA.

Based on this analysis, we recommend going long on cipla within the price range of 1500-1510, with an upside target of Rs 1600. It is prudent to set a stop-loss at Rs 1460 on a daily closing basis to manage risk.

SJVN:

SJVN recently experienced a breakout on the daily chart, indicating a potential bullish trend. Prior to this breakout, the stock had been consolidating for 18 days, precisely on the 50-day Exponential Moving Average (DEMA) on the daily scale. This consolidation phase created a solid foundation for the subsequent breakout. The stock closed above the 18-day high of Rs 139 and is currently positioned near Rs 142.

Additionally, the daily Relative Strength Index (RSI) has reversed from 40 and is now near 60, which is a positive indicator for SJVN. Based on this analysis, we recommend taking a long position on SJVN within the price range of Rs 140-142, with an upside target of Rs 155. To manage risk, it is advisable to set a stop-loss at 134 on a daily closing basis.

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