Key technical patterns signal upside potential in six stocks, including breakout moves in Rallis and Balaji Telefilms.
Strong technical chart patterns have led SEBI-registered analyst Vinay Kumar Taparia to be bullish on several stocks, including EMS, Torrent Pharmaceuticals, Rallis India, and others.
These breakouts are supported by volume and momentum indicators, which suggest multi-month upside ahead. However, Taparia cautions that failure to hold certain key support levels may negate the current bullish view.
Let’s take a look at his stock recommendations:
Mrs Bector's Food Specialities
EMS Limited
EMS has witnessed a superb cup and handle breakout on its daily chart with huge volumes. The stock can rise to ₹700-₹750 in the short term, but a close below ₹695 will negate this view.
Rallis India
Rallis posted a strong show in its June quarter results, and the stock tested new highs driven by earnings, followed by some profit booking. However, the stock has seen buying and formed a Morning Star pattern on the daily chart. It has also given a breakout on the weekly chart. The analyst is bullish on the stock for both the short and long term, but a close below ₹330 will negate this view.
Balaji Telefilms
Balaji Telefilms saw a good breakout on its weekly chart after retesting the previous breakout level on the daily chart. The stock can potentially move to ₹140 levels within 12 to 18 months. But a weekly close below ₹79 negates this view.
Torrent Pharmaceuticals
Torrent Pharma saw a good breakout on its weekly chart near its all-time high. The stock is expected to move to ₹4,000-₹4,250 in six to nine months, but a close below ₹3,200 will negate this view.
Ultramarine and Pigments
Ultramarine experienced a strong breakout on Wednesday and saw follow-up buying with increased volume, which is a positive sign. The stock is trading near an all-time high and could move to the ₹650-700 level within 12 months; however, a close below ₹510 would negate this view.
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