Amidst recent market volatility and ongoing geopolitical concerns, leading domestic brokerage firms SMC Global Securities and BP Equities have issued recommendations for select stocks poised for short-term gains. Their analysis, based on robust technical parameters and chart formations, highlights Brigade Enterprises, Eternal Ltd, and Canara Bank as strong 'buy' candidates.
Brigade Enterprises: Ascending Triangle Formation
SMC Global Securities recommends a conditional buy for Brigade Enterprises, noting an ascending triangle formation on its daily chart. The stock is exhibiting higher lows while consistently testing a horizontal resistance zone near Rs 580-582. Momentum indicators like the Relative Strength Index (RSI) are holding above the neutral zone, and the Moving Average Convergence Divergence (MACD) shows a positive crossover, reinforcing a constructive technical outlook.
- Recommendation: Conditional Buy above Rs 586
- Target Price: Rs 658-660
- Stop Loss: Below Rs 540
A decisive close above the Rs 586 breakout level could confirm further upward movement. Key support levels are identified around Rs 540-545 and stronger support near Rs 515-520, with the broader bullish structure expected to remain intact as long as the stock sustains above the rising trend line.
Eternal Ltd: Strong Recovery and Breakout
BP Equities has issued a 'buy' recommendation for Eternal Ltd, observing a significant recovery from its March lows. The stock has established a clear higher high and higher-low structure, signaling a transition from an accumulation phase to an advancing phase. Eternal has also achieved a decisive breakout above the Rs 300-305 supply zone, a level that previously acted as resistance on multiple occasions.
- Recommendation: Buy
- Target Price: Rs 361
- Stop Loss: Rs 293
The Rs 300-305 zone is now expected to act as immediate support. Price action comfortably above major moving averages, combined with improving volume participation during advances and controlled pullbacks, supports the breakout structure. The MACD remains above the zero line with a positive histogram, indicating strong upward momentum.
Canara Bank: Approaching Directional Breakout
SMC Global Securities suggests accumulating Canara Bank, which is forming an ascending triangle on its daily chart. Prices are nearing the apex after a prolonged consolidation period, indicating potential for a directional breakout. The stock is attempting to move past a falling trend line resistance while consistently forming higher lows, reflecting growing buying interest.
- Recommendation: Accumulate in range Rs 130-132
- Target Price: Rs 145-147
- Stop Loss: Rs 123
RSI is trending higher, and MACD remains in positive territory, reinforcing the constructive setup. Immediate resistance is found at Rs 130-132, with a major breakout hurdle near Rs 135. Key support levels are positioned around Rs 126-127 and stronger support at Rs 120-121. A sustained close above Rs 132-133 could confirm the breakout and open doors for further upside.
Disclaimer: Investment in securities markets is subject to market risks. Readers are advised to consult a qualified financial advisor before making any investment decisions.