Domestic markets soared higher on Wednesday, attempting to recoup losses suffered yesterday. S&P BSE Sensex was up more than 500 points during the afternoon trade, hovering around 57,000 while Nifty 50 was up 150 points, sitting just above 17,100. Dalal Street has been in a downtrend so far this month as geopolitical worries along with rising inflation concerns weigh on investor sentiment. With earnings season underway, analysts have been advising stock-specific action. Domestic brokerage and research firm Anand Rathi has picked two stocks based on their technical analysis, forecasting a 25-36% upside in the next 3 to 6 months time frame. These include The Ramco Cements and Tata Power.
The Ramco Cements: BUY
Target: Rs 997 per share | Upside: 24%
The Ramco Cements stock has been under pressure for quite some time but at this juncture is trading near its crucial support, analysts said. “Previously the stock turned from this level and we saw a rally towards 1100. On the Daily chart, there is a bullish BAT pattern that is looking lucrative. Thus, we advise traders to go long in the stock with a stop loss of 697,” they added.
Ramco Cements is a south-India based company and is the fifth largest cement producer in the country. Currently, the stock is trading at Rs 808 per share, which translated to an upside of 24%. A three-month time frame has been suggested for the scrip.
Tata Power: BUY
Target: Rs 340 per share | Upside: 37%
The Tata group company is India’s largest integrated power firm with a growing international presence. The core business of the company is to generate, transmit and distribute electricity. Analysts at Anand Rathi noted that Tata Power’s share price consolidated in a band of 260–200 for many months and recently broke out from that range and almost tested 300 mark. Now the stock is close to the break-out zone again. “The target for range breakout comes around 320 but we are also witnessing a flag breakout on the larger time frame. Thus we advise traders to go long in the stock in the range of 252–242 with a stop loss of 200 for the upside target of 340 in 3 – 6 months,” they added.
Currently, Tata Power shares are trading at Rs 248 per share, suggesting an upside of 37%.