Chennai Petroleum, Titagarh among top picks by Jigar S Patel of Anand Rathi

Chennai Petroleum 

 

Recently, Chennai Petroleum has formed a double-bottom pattern following a steep decline of 650 points, representing a 54 per cent price cut. On December 19, 2024, the stock exhibited a massive bullish engulfing candlestick with substantial volume, accompanied by RSI bullish divergence, indicating potential upward momentum. This pattern emerged right after testing the S4 camarilla monthly pivot support. 

 

Notably, the November camarilla pivot's third layer width was significantly wide, while December's third layer is contained within November's range, forming an "inside value relationship" in camarilla pivot terminology. This configuration often signals the potential for explosive moves following brief consolidation. 

 

Based on these observations, we recommend going long on Chennai Petroleum in the range of Rs 590-600, with a stop-loss set below Rs 560 on a daily closing basis and a target of Rs 660.

 

Devyani International

 

The stock has recently broken above its previous swing high of Rs 171.50 on the daily chart, following the formation of a triple-bottom pattern accompanied by bullish divergence. This breakout, which aligns with the R3 camarilla pivot, strengthens the bullish outlook. 

 

Additionally, increasing volume from the bottom further supports the likelihood of upward momentum. Given these positive technical signals, traders are advised to initiate long positions above Rs 172, aiming for an upside target of Rs 192 while maintaining a stop-loss at Rs 160 on a daily closing basis.

 

Titagarh Rail Systems 

 

Recently, Titagarh Rail Systems has broken above its previous double-top resistance at 1250 with significant volume, as shown in the chart. Following this breakout, the stock successfully retested the Rs 1,250 level, confirming the breakout zone with the formation of two strong green candlesticks. This price action indicates renewed bullish momentum. Based on this setup, we recommend going long in the Rs 1,300-1,320 range, with a target of 1,450 and a stop-loss at 1,230 on a daily closing basis.

 

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