Technical Picks: 1 Auto, 1 Pharma; LKP Securities Is Bullish On These Two Stocks

Two stocks have emerged as technical picks of LKP Securities due to their momentum indicator RSI experiencing a bullish crossover. These are auto giant Mahinda & Mahindra and pharma major Lupin. The brokerage is optimistic on both the stocks and has recommended buy. Both M&M and Lupin are moving towards their 52-week highs currently.

On August 28th, M&M shares ended at Rs 1,549.65 apiece, up by Rs 29.60 or 1.95% on BSE. The stock touched an intraday high of Rs 1,552 apiece, which is near its 52-week high of Rs 1,594.85 apiece. M&M has a market cap of over Rs 1.92 lakh crore.

Meanwhile, Lupin shares settled at Rs 1,108.25 apiece, higher by Rs 30.70 or 2.85% on BSE. The stock touched the day's high of Rs 1,111.25, which was also near its 52-week high of Rs 1,143.70 apiece. The company's market value is nearly Rs 50,449 crore.

Both the stocks outperformed indices on Monday.

Year-to-date, M&M shares have rallied by nearly 23% on BSE, while Lupin skyrocketed by more than 51%.

Also, M&M has currently rallied by nearly 38% from its 52-week low of Rs 1,124 apiece, on the other hand, Lupin outperformed by soaring nearly 78% from its 52-week low of Rs 623.20 apiece as of now.

Here is why Kunal Shah, Senior Technical and derivative analyst at LKP Securities has added the two stocks as his technical picks:

1. Mahindra & Mahindra:

BUY M&M AT 1550 , SL-1500, TGT 1600/1640

RATIONALE: Mahindra & Mahindra (M&M) is poised for a potential breakout from a descending trendline, indicating a shift in its trend. The stock has consistently found support at the 20-day moving average (20DMA), which currently rests at the 1500 level, adding to the positive sentiment.

The momentum indicator, RSI, has recently experienced a bullish crossover, further affirming the increasing momentum for the stock's upward movement. Key support for the stock lies at the 1500 mark, while the potential upside targets are estimated at 1600 and 1645. These factors collectively suggest an optimistic outlook for M&M, with a breakout scenario on the horizon and strong technical indications for potential price gains.

2. LUPIN

BUY LUPIN AT 1105 , SL-1074 TGT 1150/1160

RATIONALE: LUPIN has experienced an upward movement following a period of consolidation, indicating a boost in investor optimism. Additionally, the stock is maintaining its position above the crucial moving average.

The RSI on the lower timeframe has exhibited a bullish crossover and is ascending, suggesting a positive short-term outlook. Looking ahead, there's potential for the stock to reach around 1160 in the short term, with a support level established at 1074.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.