Jigar S Patel of Anand Rathi recommends buying these three stocks today

CG Power

 

Recently, CG Power entered a corrective phase, leading to a healthy 175-point pullback, which represents about a 20 per cent decline from its recent high. This correction has brought the stock down to a crucial support level within a previous demand zone, an area where buyers have historically shown interest. On the hourly chart, a bullish divergence has appeared, indicating a potential shift in momentum as selling pressure weakens. Furthermore, the stock has broken above a prevailing bearish trendline, adding strength to the case for a possible reversal. This combination of bullish divergence and trendline violation makes the stock an attractive buy at the current levels. Based on these technical signals, we recommend going long in the 715-725 zone, with an upside target of 790. To manage risk, a stop-loss should be placed at 685 on a daily closing basis, ensuring protection against downside movement if the support zone fails to hold. 

 

DMart

  Over the past 5 weeks, D-Mart (DMart) has faced substantial selling pressure, declining from a high of 5484 to its current level around the 4000 mark. Recently, it found stability near this level after reaching an intraday low of 3876 on October 31, 2024. This 4000 zone aligns with a long-term, 1.5-year bullish trendline support visible on the weekly chart, which adds technical significance to this level as a potential area for price stabilisation. On the daily chart, the Relative Strength Index (RSI) has begun forming higher lows, signalling a possible reduction in selling pressure and hinting at exhaustion among sellers around this support zone. Additionally, on the hourly chart, a hidden bullish divergence has emerged; while the price action made lower lows, the RSI did not follow, instead stabilising near its recent lows. This divergence suggests that the downside momentum may be weakening, creating a favourable buying opportunity around the 4000 mark. Given these supportive technical indicators, we recommend entering a long position within the 3990-4010 range, targeting an upside move to 4400. To manage risk, a stop-loss should be placed at 3800 on a daily closing basis, offering a sound balance between risk and reward.

 

BDL  After reaching a peak of approximately 1794 in July 2024, Bharat Dynamics Limited (BDL) has been in a corrective phase, consistently forming lower highs and lower lows. This downtrend led to a significant correction, with the stock declining by about 800 points (around 44 per cent) from its high. Currently, the stock is showing signs of stabilising as it approaches a previous demand zone—a level that historically attracted buyers. Adding to this optimistic view, a bullish divergence has emerged on the daily chart, suggesting that bearish momentum may be waning, and a reversal could be on the horizon. Considering these technical indicators, we recommend initiating a long position in the range of 1085-1120. The target for this trade is set at 1220, indicating potential upside. However, to manage risk, a stop-loss should be placed at 1020 on a daily closing basis to protect against further downside if the support fails to hold. 

 

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