Emami, Airtel among top picks by Jigar S Patel of Anand Rathi on Dec 2

Emami has broken out of a bearish trendline, suggesting that downward pressure has been alleviated, paving the way for a potential bullish move

1: EMAMI

Recently, Emami Ltd. has shown promising technical signals indicating a potential upward trend. The stock has successfully created a base near the 200-day Exponential Moving Average (DEMA) high/low band, which is often regarded as a key level for determining long-term support and resistance zones. 

 

Additionally, it has broken out of a bearish trendline, suggesting that downward pressure has been alleviated, paving the way for a potential bullish move. Complementing this setup, the Relative Strength Index (RSI) on the daily chart has exhibited a bullish divergence. This divergence indicates that while the price was previously making lower lows, the RSI began forming higher lows, a clear sign that momentum is shifting in favour of the bulls.

 

Considering these factors, the current setup appears attractive for initiating long positions. It is advised to enter the stock within the price range of Rs 675– Rs 685. The potential upside target is set at Rs 750, representing a significant profit opportunity. To manage risk effectively, a stop-loss is recommended at Rs 645 on a daily closing basis. This technical configuration, supported by bullish signals, suggests a favourable risk-reward ratio for traders at this juncture.

 

2: BHARTIARTL 

In the recent trading session, Bharti Airtel demonstrated strong bullish momentum by surpassing its previous swing high on the daily chart and closing significantly above it. This breakout signals strength in the stock's price action and suggests further upward movement. 

 

On the weekly chart, the stock has reversed after finding support at the 20-day Exponential Moving Average (EMA), reinforcing the idea that it has established a solid base for recovery. Additionally, on the hourly chart, Bharti Airtel has broken above the R4 level of the Camarilla Pivot points, a technical indicator that highlights important intraday support and resistance levels. This breakout enhances the bullish outlook for the stock.

 

Moreover, the RSI (Relative Strength Index) has provided further confirmation of the bullish trend. On the daily chart, the RSI has reversed upward from the Rs 40 level, and on the weekly chart, it has bounced from the Rs 50 level, both of which are critical thresholds that indicate renewed positive momentum. These combined technical signals suggest a favourable setup for the upcoming week.

 

Given this outlook, traders are advised to buy Bharti Airtel in the price range of Rs 1,600– Rs 1,630. The target for this move is set at Rs 1,775, while a stop loss should be placed at Rs 1,535 on a daily closing basis.

 

3: CONCORDBIO

In the previous trading session, Concord Biotech (CONCORDBIO) showcased strong bullish momentum by breaking out of a four-day consolidation phase on the daily chart and closing significantly above it. This consolidation occurred just above the R4 level of the Camarilla Pivot, a key technical indicator that highlights support and resistance levels.  The positioning above R4 indicates a robust base formation, signalling strong buyer interest. Furthermore, the weekly chart reveals a trendline breakout, as depicted in the chart, further strengthening the bullish narrative. The combination of these signals points to an attractive opportunity at the current price level.

 

Given the strong technical setup, it is advised to initiate long positions in the range of Rs 2,100– Rs 2,130. The upside potential is projected at Rs 2,300, offering a favourable risk-reward ratio. To manage downside risk, a stop-loss is recommended below Rs 2,050 on a daily closing basis. This breakout and supportive price action make Concord Biotech an appealing buy at this juncture.

 

(This article is by Jigar S. Patel, sr. manager - equity research, Anand Rathi. Views expressed are his own.)