L&T, Tata Chemicals, Bank of India among 5 stocks brokerages prefer for near-term trade

Domestic brokerage firms including LKP Securities and SMC Global Securities are positive on the select stocks, namely- Bank of India Ltd, Tata Chemicals Ltd, Crompton Greaves Consumer Electricals Ltd, Larsen & Toubro Ltd and Sonata Software Ltd- as benchmark indices continued to hit new record highs in the year 2024. 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 them:

Bank of India | Buy | Target Price: Rs 145-150 | Stop Loss: Rs 115
Bank of India has exhibited a robust breakout on the daily chart, accompanied by a significant surge in volumes. The momentum indicator, RSI, has confirmed the bullish momentum with a positive crossover. The lower-end support is evident at Rs 115, providing a cushion for the bulls. Anticipating further upward movement, the potential upside targets for Bank of India are set at Rs 145 and Rs 150.
Recommended By: Kunal Shah, Senior technical and Derivative analyst at LKP Securities

Crompton Greaves Consumer Electricals | Buy | Target Price: Rs 385-390 | Stop Loss: 290
Crompton Greaves has been consistently maintaining its bearish trend since 2022 and can be seen trading with a series of lower bottom pattern formation on weekly charts. From last almost one year, this stock has been consolidating in a broader range of Rs 250-320 and has been sustaining below its 200 days exponential moving average on weekly charts. Last week, the stock has shown some recovery from its lows as prices seen giving a renewed momentum above its 200 days exponential moving average once again with a fresh breakout above its long-term bearish channel as well. Therefore, one can buy the stock in the range of Rs 320-325 levels for the upside target of Rs 385-390 levels with stop loss below Rs 290 levels.
Recommended By: SMC Global Securities

Larsen & Toubro | Buy | Target Price: Rs 3,800-4,000 | Stop Loss: Rs 3,450
Larsen & Toubro is poised for a breakout from an upward consolidation range, consistently finding support at its 20 DMA. The momentum indicator RSI has recently turned positive with a crossover, confirming the bullish momentum. A visible lower-end support at Rs 3,450 acts as a foundation for potential bullish movements. Considering these factors, the stock holds potential upside targets of Rs 3,800 and Rs 4,000.

Recommended By: Kunal Shah, Senior technical and Derivative analyst at LKP Securities

Tata Chemicals | Buy | Target Price: Rs 1,300-1,310 | Stop Loss: Rs 1,000
Tata Chemicals can be seen trading in a rising channel with formation of higher bottom pattern on weekly charts. Last week a fresh breakout had been observed above the symmetrical triangle pattern on broader charts as stock marked its 52-week high of 1141 as well. The breakout was observed with a sudden spike in average volumes and positive divergences on secondary oscillators as well. We expect the momentum is likely to continue towards more upside as price volume action suggests a fresh round of buying into the stock. Therefore, one can buy the stock in the range of Rs 1,110-1,115 levels for the upside target of Rs 1,300-1,310 levels with stop loss below Rs 1,000 levels.
Recommended By: SMC Global Securities

Also read: Stock recommendations by analyst for January 15, 2024: BoI, L&T and Sonata Software

Sonata Software | Buy | Target Price: Rs 800-820 | Stop Loss: Rs 720

Sonata Software is currently in a robust uptrend, showcasing higher highs and higher lows on the daily chart. The stock recently witnessed a breakout with increased volumes from its 20-day moving average, affirming the bullish momentum. The positive crossover in the momentum indicator RSI further confirms the buy signal. The lower-end support is identified at Rs 720, providing a cushion for the bulls. With these indicators, the upside potential target for Sonata Software is set at Rs 800-820.

Recommended By: Kunal Shah, Senior technical and Derivative analyst at LKP Securities


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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