Stocks to buy: Here's why Arvind Fashion and L&T Finance are a buy
1) BUY L&T FINANCE HOLDINGS AT ₹140-136 | SL: ₹130 | TARGET: ₹150/152 RATIONALE: L&T Finance Holdings shows promising signs for potential investors. It has recently closed near a strong resistance level, signalling a potential breakout. Additionally, it's trading above its 20-day moving average, confirming short-term bullish sentiment.
Growing trading volume suggests increasing market interest. With an RSI at 61, indicating momentum strength, the stock appears well-positioned. Consider initiating a long position in the range of 136-140, setting a stop-loss at 130 for downside protection, and aiming for a target of 152.
RATIONALE: Godrej Consumer Products (GODREJCP) stock has shown a breakout from a falling trendline on the charts, supported by a sharp surge in trading volumes. The RSI momentum indicator has rebounded strongly from oversold territory, indicating renewed strength. Additionally, the stock has broken above its 200-day moving average (200DMA) positioned at 988, confirming a change in trend.
With support visible at 960, acting as a cushion for the bulls, the stock presents potential upside targets in the range of 1,100 to 1,170. RATIONALE: Arvind Fashion stock has established a robust base formation at lower levels. It has been consolidating within a broad range between 265 and 380 and is currently displaying indications of an impending significant move in the near term.
The stock continues to be in a "buy on dip" mode, with support at 300, and holds the potential for upside targets of 450 and 600. The author, Kunal Shah is Senior Technical & Derivative analyst at LKP Securities Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We
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