Indian Hotels, REC, Gujarat Ambuja Exports: 3 short-term stock trading picks from brokerage firms

Amid the volatility in the broader markets, select domestic brokerage firms have suggested three stocks including India Hotels Co Ltd, Gujarat Ambuja Exports Ltd (GAEL) and REC Ltd- to make short term profits, based on their sound technical parameters. All the analysts have suggested to long their respective picks. Here's what brokerage firms have said about these stocks:

The Indian Hotels Co| Buy | Target Price: Rs 710 | Stop Loss: Rs 627

The Indian Hotels Company has broken out of a symmetrical triangle pattern on the daily chart, indicating a continuation of the larger bullish trend. It has also moved above its previous swing high. Additionally, the RSI shows a bullish breakout on the daily timeframe. In the short term, the stock could move towards Rs 710, with support located at Rs 627.

Recommended by: LKP Securities

REC | Buy | Target Price: Rs 680 | Stop Loss: Rs 570

REC has been consolidating for quite some time maintaining above the significant 50-EMA zone of Rs 580 levels and has sustained above the long-term trendline support near Rs 575 zone, showing stability. Currently has indicated a positive candle formation on the daily chart with improving bias to anticipate for further rise in the coming days. The RSI is on the rise indicating positive trend reversal to signal a buy and with much upside potential visible, it can carry on with the positive move further ahead. With the chart looking good technically, we suggest to buy the stock for an upside target of Rs 680, with a stop loss of Rs 570.

Recommended by: Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher

Gujarat Ambuja Exports | Buy | Target Price: Rs 174 | Stop Loss: Rs 122

It has established a robust support level within the range of 130-132 over the past year, undergoing multiple tests that have demonstrated its resilience in the face of downward pressure. Recently, there has been a significant development as GAEL broke above a bearish trendline that had constrained its movement for the past 4-5 months, and notably, it has sustained this breakout. This suggests a fundamental shift in market sentiment towards the stock. Furthermore, on the indicator front, the weekly Relative Strength Index (RSI) has surpassed its own bearish trendline, signaling bullish momentum in the short to medium term. Considering these technical indicators, we have advised traders and investors to initiate long positions in GAEL within the range of Rs 137-142. We have set an upside target of Rs 174, indicating our bullish outlook on the stock's potential for appreciation. To manage risk, we recommend placing a stop-loss order near Rs 122 on a daily closing basis, aiming to protect
against adverse movements in the market.

Recommended by: Jigar S Patel, Senior Manager at Anand Rathi Shares & Stock Brokers