Leading domestic brokerage firms SMIFS and Choice Equity Broking have identified three stocks—Adani Total Gas, Aurobindo Pharma, and Delhivery—as strong "buy" candidates based on robust technical analysis. These recommendations come with specific target prices and crucial stop-loss levels for investors looking for short-term gains.
Aurobindo Pharma: Bullish Trend Confirmed
According to SMIFS, Aurobindo Pharma has achieved a significant breakout, surpassing its September 2024 swing high. This technical move confirms a sustained long-term bullish trend for the pharmaceutical major. The stock continues to trade comfortably above its key moving averages, indicating strong underlying momentum and consistent buying interest.
Analysts note that the price acceptance above the previous resistance zone now establishes it as a new support level. This robust price action suggests buyers are firmly in control, maintaining a positive overall structure with higher highs and higher lows. SMIFS recommends a "buy" with a target price of Rs 1,733, advising a stop loss at Rs 1,500 on a closing basis to protect against downside risks.
Delhivery: Strong Momentum Post Breakout
Choice Broking Equities highlights Delhivery Ltd's strong bullish momentum following a decisive breakout above a critical horizontal resistance level. This suggests a continuation of its prevailing uptrend. Trading around Rs 500.40, Delhivery is comfortably holding above its breakout zone, reflecting significant buying interest and positive price action.
Technically, Delhivery is positioned above all its key Exponential Moving Averages (EMAs), which are maintaining a rising alignment. This indicates a healthy medium-term trend and reinforces its bullish structure. For positional traders, Choice Broking suggests a stop-loss level of Rs 470. As long as the stock remains above this support, Delhivery has the potential to reach a target price of Rs 560, offering an attractive risk-reward profile.
Adani Total Gas: Weekly Breakout Signals Uptrend
Adani Total Gas Ltd has registered a notable breakout on its weekly chart, signaling the potential start of a fresh medium-term uptrend, as per SMIFS. Following a sharp rally, the stock entered a consolidation phase just above the breakout level. Analysts interpret this as healthy profit booking rather than a distribution phase.
The ability of Adani Total Gas to sustain above its previous resistance zone underscores continued buying interest and strengthens the credibility of the breakout. Price action remains constructive, with buyers actively defending the support area, keeping the broader trend intact. A sustained move beyond the current consolidation range could trigger the next leg of the rally. SMIFS maintains a bullish outlook, recommending a "buy" with an upside target of Rs 850, provided the stock holds above the stop-loss level of Rs 675.
Disclaimer: Investment in the stock market involves inherent risks. Readers are strongly advised to consult with a qualified financial advisor before making any investment decisions. This article is intended for informational purposes only and should not be considered as financial advice.