MRPL, Hikal among top picks by Jigar S Patel of Anand Rathi for July 15

MRPL

In recent weeks, MRPL has been consolidating within a price range of Rs 210-230. However, the stock has recently exhibited a decisive breakout, accompanied by substantial trading volume, indicating a potentially attractive buying opportunity at this juncture. 

From a technical analysis perspective, the Daily MACD has formed a bullish crossover just above the zero line, further signalling a positive outlook for the stock. 

Based on these indicators, it is advisable to consider adding long positions within the Rs 235-245 range, targeting an upside potential of Rs 270. To manage risk, a stop-loss should be set at Rs 225 on a daily closing basis.

Hikal

Between March 2023 and June 2024, Hikal has been consolidating within the approximate range of Rs 260-320. Recently, the stock broke out of this range with significant trading volume, making it an attractive buy opportunity. 

Despite a rally of nearly 40 points post-breakout, it is recommended to purchase on any dips. From a technical standpoint, the Daily MACD has formed a bullish crossover just above the zero line, indicating a positive trend. 

Therefore, it is advisable to buy within the Rs 335-350 range, aiming for an upside target of Rs 425. To mitigate risk, a stop-loss should be set at Rs 315 on a daily closing basis.

Birlasoft 

Recently, Bsoft has successfully surpassed its critical resistance level of Rs 720 and is now holding steady around the Rs 730 mark. 

This breakout, characterised by substantial trading volume, is a promising indicator of the stock's potential upward movement. From a technical analysis standpoint, the Daily Relative Strength Index (RSI) has rebounded from the 50 level, suggesting renewed strength and making the current price levels especially appealing for investors. 

Based on these factors, it is advisable to consider purchasing shares within the Rs 720-735 range, targeting an upside potential of Rs 780. To manage risk prudently, a stop-loss should be implemented near the Rs 699 level on a daily closing basis.

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