Aster DM, SPARC among 3 stocks looking strong on tech charts, says Geojit

Disclaimer: This article is written by Anand James, chief market strategist, Geojit Investments. Views expressed are his own. Readers' discretion is advised.

 

SYRMA (LTP: 1634) 

View: Buy

Target: ₹1835

SL: ₹1429 

Syrma SGS Technology is showing strong signs of continued strength after moving above a long-term consolidation zone. The stock has completed a bullish Cup and Handle formation, often considered a sign of a fresh upward move. The breakout was accompanied by a strong bullish candle and a sharp increase in volume, indicating strong buying interest. 

Momentum indicators are also supportive. The MACD has generated a bullish crossover, suggesting that upward momentum is strengthening, while the RSI is hovering near 70, reflecting strong buying pressure and a healthy trend. The stock is also trading comfortably above its key moving averages, highlighting a well-established uptrend across multiple timeframes. Another encouraging sign is the steady rise in delivery volumes, which suggests increased investor participation and accumulation rather than short-term trading. 

 

The combination of strong price action, rising volumes, improving momentum, and a major breakout pattern supports a move towards 1835 in the next few weeks. All longs may be protected with a stop-loss placed below 1429 levels.

 

SPARC (LTP: 205) 

View: Buy

Target: ₹224

SL: ₹196 

SPARC appears well-positioned for a short-term recovery after finding support near the 61.8% Fibonacci retracement level of the March low to July high rally. The stock has managed to hold this key support zone despite the recent correction, indicating that buyers are stepping in at lower levels. Momentum indicators are also showing signs of improvement, with the weekly MACD histogram printing exhaustion candles, suggesting that the recent selling pressure may be nearing its end. 

The RSI is hovering around 55, reflecting a gradual improvement in momentum while remaining comfortably above the neutral zone. The recent price action also points towards stabilization after the pullback, improving the risk-reward profile for a positional trade. 

With support firmly established near current levels and momentum showing early signs of recovery, SPARC could witness a move towards 224 over the next few weeks. Protect longs with a stop-loss placed below 196 levels.

 

ASTERDM (LTP: 795) 

View: Buy

Target: ₹840

SL: ₹769 

Aster DM Healthcare is showing signs of a recovery after witnessing a healthy pullback from its recent highs. Momentum indicators have started turning favorable, with the MACD generating a bullish crossover, indicating that buying momentum is gradually strengthening. Supporting this view, the weekly MACD histogram has begun displaying exhaustion candles, suggesting that the recent phase of selling pressure may be losing steam. 

The RSI has moved above the 50 mark and its moving average, reflecting an improvement in trend strength and a shift in momentum back in favor of the bulls. 

With momentum indicators aligning positively and downside pressure appearing to ease, the risk-reward setup looks favorable for a short-term positional move towards 840 in the next few weeks. Traders may consider buying the stock at current levels with a stop-loss placed below 769.