Anshul Jain, Research Analyst and Head of Research at Lakshmishree Investments, recently shared his expert analysis and trading strategies for three prominent Indian stocks: NIIT Ltd, Apollo Micro Systems, and Tejas Networks. Featured on the "Daily Calls" show on BTTV, Jain provided crucial insights into potential movements, key technical levels, and strategic recommendations for investors.
NIIT Ltd: Potential Rebound Ahead
Jain suggests that NIIT Ltd may be poised for a technical rebound within the next six months. After enduring a significant correction, with the stock plummeting 78% over 69 weeks, it appears to be stabilizing. He noted that NIIT is currently hovering around the Rs 107-108 zone, which represents a critical 50% retracement area. A decisive move above Rs 109, according to Jain, could pave the way for an upside target of Rs 144. The stock's "third week of inside bar" formation on weekly charts indicates that selling pressure might be subsiding, suggesting a potential shift in momentum.
Apollo Micro Systems: Avoid Averaging Down
For investors holding Apollo Micro Systems shares and facing losses, Jain issued a strong caution against averaging down. He highlighted a failed breakout in the stock, which initially emerged on July 3 but collapsed after the price slipped below Rs 446 on July 6. This breakdown, in his view, has fundamentally altered the risk-reward profile, pointing towards a possible decline to Rs 378. Jain's advice is clear: avoid averaging "losing stocks," especially in the volatile mid-cap, small-cap, and micro-cap segments. He recommended that investors who did not exit during the failed breakout should implement a mandatory stop-loss at Rs 378 on a closing basis.
Tejas Networks: Relief Rally as Exit Opportunity
While a brief relief rally might occur for Tejas Networks, Jain warned that the overall technical setup remains fragile. He cautioned that any short-term recovery should be viewed as an opportunity for investors to exit rather than a signal for a sustained uptrend. Jain pointed out the stock's failure to maintain a breakout above the Rs 610 level, noting that the associated liquidation target in the Rs 550-Rs 520 range has already been met. Should Tejas Networks fail to sustain momentum and get rejected in the Rs 575-Rs 590 zone, Jain projected a further downside target of Rs 427, indicating a significantly sharper drop from current levels if the recovery proves to be short-lived.
Disclaimer: This article provides stock market news for informational purposes only and should not be considered as investment advice. Readers are strongly encouraged to consult with a qualified financial advisor before making any investment decisions.