Amid increasing selling pressure in broader markets, domestic brokerage firms SMC Global and Canara Bank Securities have identified select stocks with strong charts and sound technical parameters for potential short-term gains. These recommendations offer investors potential refuge in what are considered safer bets. The firms have highlighted DLF Ltd, HBL Engineering, and Navin Fluorine International Ltd as top picks, detailing their technical analysis, price targets, and crucial stop-loss levels.
HBL Engineering: Inverse Head-and-Shoulders Breakout
SMC Global recommends HBL Engineering, noting a decisive breakout above an inverse head-and-shoulders pattern. The stock's neckline, around Rs 780–785, has been crossed, and the price has moved above its long-term descending trend line, signaling an improving technical structure. This breakout is supported by stronger momentum, with both RSI and MACD turning upward.
- Target Price: Rs 895-905
- Stop Loss: Rs 720
- Accumulation Range: Rs 785-795
- Key Support: Rs 780-785 (breakout support), Rs 700-720 (positional support)
Sustained trading above Rs 785 is expected to maintain the recovery, with the pattern suggesting upside toward Rs 850-860 levels and beyond.
Navin Fluorine International: Downward Channel Breakout
Canara Bank Securities has given a 'buy' recommendation for Navin Fluorine International. The stock has broken out from a downward sloping channel and successfully retested the breakout levels, indicating positive momentum. Its price is now trading above all major moving averages, further strengthening the trend structure.
- Target Price: Rs 9,085-9,372
- Stop Loss: Rs 7,769
The Relative Strength Index (RSI) is in the moderate zone around 54, reflecting a robust upward trend, and volume expansion during the breakout phase adds significant credibility to the move.
DLF: Base Building and Conditional Buy
SMC Global's analysis of DLF's weekly chart shows the stock consolidating in a tight range just above its long-term rising moving average, following a sharp correction from its 2024 highs. After bottoming out around the Rs 600-620 zone, the stock has formed a base and is currently trading around Rs 683 within a defined consolidation box.
- Conditional Buy: Above the breakout level of Rs 700
- Target Price: Rs 780-800
- Stop Loss: Rs 640
Immediate support is at the Rs 640-650 zone, while resistance is seen at Rs 695-700 levels. A decisive weekly close above Rs 700 could trigger a fresh upward movement. RSI and MACD are turning neutral-to-positive, indicating stabilization and a base-building phase, with a confirmed trend reversal requiring a breakout above Rs 700.
Disclaimer: This information is for educational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.