Stocks to buy: Here's why investors should bet on L&T Finance Holdings, GNFC, Rail Vikas Nigam
Also Read: Week Ahead: Q2 Results, PMI data, auto sales, US Fed Policy, global cues among key market triggers this week The GNFC stock has displayed a strong resurgence, characterized by a long-legged doji candle testing its previous breakout resistance. Notably, the subsequent candle is significantly bullish, indicating a strong comeback by the bulls. Currently, the stock is trading above its 20-day EMA, with an RSI of 62, signifying strong momentum.
Consider establishing a long position in the stock within the range of 660-665, while setting a strict stop loss at 642. On the upside, aim for a target price of 700. Also Read: These 10 smallcaps log double-digit rise even as Sensex posts worst weekly decline in a month; do you own? The stock is following a higher high and higher low pattern on the daily chart, which is a bullish sign.
The positive pattern is accompanied by good trading volume, indicating strength in the price action. The Relative Strength Index (RSI) indicator on the daily chart is in the positive zone, supporting the bullish sentiment. Consider establishing a long position in the stock within the range of 136-137, while setting a strict stop loss at 131.
On the upside, aim for a target price of 155. Also Read: Buy or sell: Sumeet Bagadia recommends three stocks to buy next week The stock has reversed from a prior demand zone, indicating the potential for an uptrend to continue. Furthermore, the price has crossed back above the 50-day simple moving average (50SMA) on the daily chart.
Consider establishing a long position in the stock within the range of 155-157, while setting a strict stop loss at 150. On the upside, aim for a target price of 175. The author, Rupak De is Senior Technical analyst at LKP
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