Stocks to buy: Titan among 3 stock ideas for solid returns in short term

Stocks to buy: Aakash Shah of Choice Equity Broking recommends buying Shipping Corporation, Titan and Apollo Hospitals for solid returns in the near term.

Stocks to buy: Recommendations by Aakash Shah of Choice Equity Broking 

Buy SCI in Cash @ ₹275, Stop Loss @ ₹260, Target ₹300

 

On the daily timeframe, SCI's stock has stabilized near the 61.8 per cent Fibonacci retracement of its prior uptrend—a key support zone, where buying interest typically re-emerges. 

This strength is further reinforced by the stock holding above its 200-day Simple Moving Average (200 SMA), indicating that the broader uptrend remains intact. Notably, on Friday, the price action confirmed this support with the formation of a bullish engulfing pattern on the daily chart, signaling a shift in sentiment in favor of buyers. 

 

In addition, momentum indicators support the positive outlook, as the RSI has rebounded sharply from oversold levels, suggesting that selling pressure has eased. 

From a trading perspective, the current setup offers an attractive risk-reward opportunity. Traders may consider accumulating at current levels or on minor dips toward the ₹270 zone, with a stop-loss placed at ₹260. The upside potential remains open toward key resistance levels as the stock attempts to resume its upward trajectory.

 

Buy Apollo Hospitals in Cash Above ₹8,870, Stop Loss ₹8,700, Target ₹9,200 

Apollo Hospitals continues to trade in a strong bullish trajectory, forming a pattern of higher highs and higher lows while hovering near its short-term key moving averages. A decisive move above ₹8,870, supported by strong trading volumes, would confirm a breakout and pave the way for further upside. 

On the four-hour chart, the stock is trading within an ascending triangle pattern and is currently finding support near the lower trendline of the formation, which is further reinforced by the 50-DEMA. In addition, the Relative Strength Index (RSI) is positioned at 56, indicating healthy momentum while remaining below the overbought zone. 

From a trading perspective, traders may consider initiating fresh long positions only after the stock registers a confirmed closing breakout above ₹8,870, with a stop-loss at ₹8,700 and an upside target of ₹9,200.

 

Buy Titan in Cash @ ₹4,680, Stop Loss ₹4,600, Target ₹4,850

 

Titan continues to maintain a strong bullish trend on the daily chart, forming a consistent pattern of higher highs and higher lows, which indicates sustained buying interest. The stock is currently consolidating above its key support level of ₹4,600, signaling the potential for further upside. 

The Relative Strength Index (RSI) is trading around 67, reflecting strong momentum while approaching the overbought zone. Additionally, the stock is trading above its 20-day and 50-day Simple Moving Averages, supported by a bullish crossover, which suggests continued strength in the short term. 

From a trading perspective, traders may consider initiating long positions around ₹4,680, with a stop-loss placed at ₹4,600 and an upside target of ₹4,850.

 

Disclaimer: This article is by Aakash Shah, technical analyst, Choice Broking. Views expressed are his own. Readers' discretion is advised.