Technical Picks: 2 Largecap Stocks Trading From Rs 1,600-5,800, Advised To Buy This Week For Strong Gains Ahea

After ending the previous week in gains, brokerage SMC Global Securities expect the momentum to continue on BSE and NSE during the trading week from July 22nd to 27th. The brokerage believes individual stock performance will play a larger role. And hence, the brokerage has selected two stocks of diverse segments as its technical picks for this week's trading sessions.

These are: LTIMindtree of IT basket, and Bajaj Finserv of NBFC bucket.

The common factor between the two is that they are largecaps.

Here's the technical analysis by the brokerage:

1. LTIMindtree:

Currently, LTIMindtree is at Rs 5760 apiece with a market cap of Rs 1,70,590.10 crore. In the trading week that ended on July 19, the stock gained by over 4.5%. This is because LTIMindtree posted healthy earnings.

In Q1FY25, the company posted net profit of Rs 1,135.1 crore, registering growth of 3.1% QoQ, but year-on-year performance was down by 1.5%. However, revenue stood at Rs 9,142.6 crore, registering upside of 2.8% QoQ and 5.1% YoY. In dollar terms, revenue was at $1,096.2 million, up 2.5% QoQ and 3.5% YoY. Net profit in dollars was at $136.1 million, higher by 2.8% QoQ but down by 2.9% YoY.

As per SMC, the stock closed at Rs.5762.75 on 19thJuly, 2024. It made a 52-week low of Rs.4513.55 on 04th June, 2024
and a 52-week high of Rs.6442 on 15th January 2024. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at 5164.

Further, the brokerage technically added that for a significant period, the stock endured downward pressure, consistently trading below its 200-day exponential moving average (DEMA) on the daily timeframe. Recently, however, there had been a notable resurgence as the stock regained momentum, surpassing both its 200 DEMA and a crucial resistance
level of 5100.

Also, the brokerage mentioned that at present, there is a clear breakout above a Symmetrical Triangle pattern, supported by continued buying activity. Therefore, one can buy the stock in range of 5750-5760 for the upside target of 6550-6600 levels with SL below 5200 levels, SMC said.

2. Bajaj Finserv:

Bajaj Finserv is among the largest NBFC player along with its subsidiary Bajaj Finance. As of July 19, 2024, the stock is at Rs 1639.70 apiece with market cap of Rs 2,61,804.68 crore. In the trading week from July 15t-19, the stock advanced by nearly 3%.

According to SMC, the stock closed at Rs.1640.25 on 19th July, 2024. It made a 52-week low at Rs.1419.05 on 04th June, 2024 and a 52-week high of Rs.1741 on 20th December 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs1590.

Moreover, it said that the stock has been consolidating in broader range of 1520-1620 levels from last more than three months with prices seen hovering around its 200 days exponential moving average on daily charts. Over the
period of consolidation, the stock has formed an Inverted Head & Shoulder pattern.

This week, SMC said, "we have observed a fresh breakout into the stock above the neckline of the pattern formation. The sudden spike in volume activity along with breakout suggests for further upside into the stock. Therefore, one can buy the stock in range of 1620-1640 levels for the upside target of 1750-1760 levels with SL below 1540 levels."

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.