Marwadi Shares and Finance Limited said, its overall market view is cautious at current levels and bullish stock specifically. Hence the brokerage has recommended a few selective technically and fundamentally better risk-reward stocks.
Here is the top 5 technical stock picks from Marwadi Shares:
The stock has been consolidating for more than 6 months in a triangular pattern. The stock has also retraced 38.20 percent of its entire up move so far and it’s likely to hold the lower end of the range. Once this consolidation is over, the stock is expected to provide a breakout on the upside. The target on the upside is Rs 1570 whereas the stop loss or reversal is Rs 747.
The stock has fallen in a downward sloping channel and it seems to have completed its wave 4 down at 38.20 percent retracement levels. The stock has also taken a good support at its lower end of the rising channel; hence a probability of a wave 5 from here on is quite high. The target on the upside is Rs 1030 i.e. above the all time highs of Rs 864 levels.
G M Breweries
The stock has reversed from 78.60 percent of the previous up move which is quite positive. The stock has provided a breakout from the downtrend line resistance with an increase in volumes indicating fresh breakout i.e. price-volume breakout. With this breakout the stock seems to have started wave III of wave 5 up, hence one can buy this for the target of Rs 1100 and place a stop loss at Rs 600, i.e. the previous months swing low.
The stock has taken a good support at the lower end of the rising channel and with that it seems to have completed its wave 4. The stock has started to form higher tops and higher bottoms and with that wave 5 up seems to have started which will eventually take the stock above its wave 3 highs of 795. The stock retraced 61.8 percent of its wave 3 and now it is likely to inch towards 950 which is its conservative target. The volumes have increased with an increase in price hence this is a good sign for the bulls. The MACD on the monthly charts is well in the buy mode and it’s also trading above its zero reference line which is also quite positive for the stock going ahead. One can buy this for the target of Rs 950 and place a stop loss at Rs 490.
State Bank of India
SBIN has finally provided a breakout above its long term range and this time its sustaining well above those levels. The breakout has come with an increase in volumes and positive crossover in its momentum indicators on the monthly charts. The stock consolidated with a range of 350-375 on the upside to 145 on the downside. The stock did retest the breakout hence Rs 399 is the stop loss going ahead whereas Rs 750 is the conservative target on the upside. There is a risk: Reward of more than 1:2, hence we recommend buying the stock at these levels.
(Disclaimer: The views and recommendations made above are those of individual analysts or broking companies)
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Published on: Wednesday, November 03, 2021, 01:55 PM IST