Reliance, ITC & Mahanagar Gas: 3 techno-funda stock picks from Ashika Stock Broking

Amid the rising selling pressure in the Indian equity markets, domestic brokerage firm Ashika Stock Broking has suggested thee stocks- Reliance Industries Ltd (RIL), ITC Ltd and Mahanagar Gas Ltd (MGL)- to bet amid the scarce opportunities to make money. The brokerage has picked these stocks based on the techno-fund parameters. Here's what the brokerage has to say about these counters:

Reliance Industries | Buy | Target Price: Rs 1,410-1,510

Reliance Industries reported healthy 3QFY25 performance owing to a stronger than expected profit from the Retail and O2C businesses. Its effort on deepening presence of AirFiber to boost ARPU, strong retail growth and listing of Jio and retail business to unlock value are the near term catalysts for the company going ahead. It is on the verge of breaking out of the falling channel that has contained the stock’s corrective decline over the past six months. Buying demand has emerged from the support zone around Rs 1,200, a level that aligns with both the 200-week moving average (WMA) and the 61.8 per cent retracement of the previous rally from Rs 1,015 to Rs 1,608. This target represents the 50 per cent retracement of the previous six-month decline from Rs 1,608 to Rs 1,201. On the technical front, the weekly 14-period. RSI has rebounded from oversold territory and generated a buy signal, further validating the positive bias and reinforcing the outlook for continued gains.

ITC | Buy | Target Price: Rs 465-500

ITC has evolved into a diversified conglomerate, expanding beyond its traditional cigarette business into FMCG, agribusiness, paperboards & packaging, and IT services, creating multiple growth drivers. The government’s recent budget measures, along with expanding outlet coverage, localisation strategies, and premiumisation efforts, are expected to revive growth in the coming quarters. ITC is currently in a consolidation phase, showing signs of resuming its upward momentum around the Rs 390-400 levels. On the smaller time frame, the stock has retraced 61.8 per cent of its five-month upward move from March 2024 to September 2024, which signals a shallow retracement and suggests the formation of a higher base. This development points to potential for further upward movement. Looking ahead, the stock is expected to maintain its positive momentum and could target the Rs 465 level in the near term, which corresponds to the swing high of CY25. Technical indicators also support this outlook, with the daily RSI showing a potential buy signal, bolstered by a positive divergence. These factors reinforce the expectation of continued gains in the coming sessions.

Mahanagar Gas | Buy | Target Price: Rs 465-500

MGL posted healthy performance on the back of macro headwinds for the quarter ended Q3FY25. The management expressed confidence in maintaining margins and volume growth, projecting a YoY growth of around 10 per cent for FY26. Mahanagar Gas has formed a potential double bottom at a crucial support level of Rs 1,190. The stock is currently poised to break above the neckline of this double bottom pattern, positioned at 1380. This breakout would signal the resumption of its upward movement, providing a fresh entry opportunity for investors. Over the past five months, the stock has been consolidating within the Rs 1,100-1,380 range, consistently holding above the key support level of 1190-1200. The stock closed above the 50-day EMA, currently at Rs 1,310, signaling that buying demand is emerging at this critical support level. Looking ahead, one can expect the stock to target the Rs 1550 level, which represents the 200 DMA. On the technical front, the daily 14-period RSI has rebounded, further validating the positive bias and reinforcing the expectation of further gains.