Divis Labs, Granules, Siemens among 4 stocks analysts picks in the near term

Domestic brokerage firms including LKP Securities and SMC Global are positive on the select stocks, namely- Vardhman Textiles Ltd, Divis Laboratories Ltd, Granules India Ltd and Siemens Ltd - amid the rising volatility in the domestic markets. The brokerage firms believe that these stocks are headed for a strong upside in the near-term on the basis of their technical setup. Here what the analysts said about these counters:

Vardhman Textiles | Buy | Target Price: Rs 450 | Stop Loss: Rs 408
Vardhman Textiles exhibits a strong bullish outlook, marking a consolidation breakout on the weekly chart. It consistently trades above its crucial moving average, as well as the 21- and 14-days moving averages, reinforcing positive momentum. With an RSI of 67 on the weekly chart, momentum strength is evident. Consider initiating a long position in the Rs 418-422 range, setting a stop loss at Rs 408, and targeting an upside of Rs 450.
Recommended by: Rupak De, Senior Technical Analyst at LKP Securities.

Divis Laboratories | Buy | Target Price: Rs 4,080-4,100 | Stop Loss: Rs 3,450
Divis Labs saw a sharp correction from Rs 3,850 levels and tested Rs 3,300 levels over the period of weeks to form a 'double bottom' pattern. However, a V shape recovery has seen into the prices since then as once again stock has managed to surpass above its 200 days exponential moving average on daily interval. At current juncture stock has given a breakout above the falling trend line of downward sloping channel with positive divergences seen on secondary oscillators. Therefore, one can buy the stock in the range of Rs 3,740-3,760 levels for the upside target of Rs 4,080-4,100 levels with stop loss below Rs 3,450 levels.
Recommended by: SMC Global

Granules India | Buy | Target Price: 430 | Stop Loss: Rs 377
Granules has exhibited a flag pattern breakout on the daily chart, indicating a potential increase in optimism. Moreover, the stock found support at the 21EMA before the recent rally. The surge in volume has substantiated the latest rally. The potential upside seems to be around Rs 430, with support placed at Rs 377.
Recommended by: Rupak De, Senior Technical Analyst at LKP Securities.

Siemens | Buy | Target Price: Rs 3,950-4,000 | Stop Loss: Rs 3,350
Siemens has been trading under pressure and can be seen drifting with formation of lower high patterns on daily and weekly charts from the last three months. However in the recent past stock has formed a Double Bottom pattern on weekly intervals around Rs 3,250 levels and bounced back once again to regain a momentum above its 200 days exponential moving average on daily interval. At current juncture stock has formed an Inverted Head & Shoulder pattern on daily time interval, with prices seen giving a fresh breakout above the neckline of the pattern formation. Therefore, one can buy the stock in the range of Rs 3,610-3630 levels for the upside target of Rs 3950-4,000 levels with stop loss below Rs 3,350 levels.
Recommended by: SMC Global

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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