GMDC, NMDC are the top picks of technical analyst Mehul Kothari

According to the analyst from Anand Rathi, GMDC can rally to Rs 168 on the upside, while NMDC can jump to Rs 114.

GMDC

BUY

Buy near Rs 156

Target: Rs 168

Stop Loss: Rs 150

After a fabulous rally of more than 250 per cent from the lows of Rs 70, the stock GMDC has corrected 61.8 per cent. Post which, the stock consolidated and confirmed a range breakout in recent trading session.

The Price action indicates the stock is about to resume its upside rally. Thus, we advise traders to buy the stock on dips near Rs 156 for an upside target of Rs 168 in the coming sessions.

NMDC

BUY

Buy near Rs 105

Target: Rs 114

Stop Loss: Rs 100

Similar to other Metal stocks, NMDC seems to be prepared for a sharp bounce. On the daily chart we are witnessing a double bottom formation near Rs 100 mark.

Also, we have a range breakout on intraday chart along with positive placement of RSI 14. 

Thus, we advise traders to buy the stock on dips near Rs 105 for an upside target of Rs 114 in the coming sessions.

(Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).