Here's why Mehul Kothari recommends buying Hikal, Jindal Saw

According to the technical analyst from Anand Rathi, JINDALSAW has seen a strong resurgence in the last two sessions backed by robust volumes indicating soaring demand at lower levels

BUY HIKAL

TARGET: Rs 575

STOP LOSS: Rs 508

HIKAL has been trading with positive biasness for the past couple of trading sessions and is currently placed above the mean of the Bollinger band (20, 2) suggesting inherent strength. Even on the daily time frame, the stock is hovering near the cluster of exponential moving averages suggesting nearby support. Also on the oscillator front, 14-period RSI has seen positive crossover and has headed northwards affirming the bullish stance in the counter.

BUY JINDALSAW

TARGET: Rs 116

STOP LOSS: Rs 96

JINDALSAW has seen a strong resurgence in the last two couple of trading sessions that have been backed by robust volumes indicating soaring demand at lower levels. On technical parameters, the stock price is placed near its 200 DEMA that historically has been proved to be a strong support zone for the counter. Even the stock has surged strongly towards the mean of the Bollinger band post-re-testing the highs of its previous consolidation zone suggesting short-term bottom formation in the counter.

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