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JK Lakshmi
After reaching a peak of around 935 on June 27, 2024, JK Lakshmi Cement (JKLAKSHMI) has experienced a significant correction, dropping nearly 80 points, translating to a 9 per cent decline.
Currently, the stock has found support near its 21-day Exponential Moving Average (DEMA), which also aligns with the previous upper boundary of its breakout range, making it an attractive buying opportunity. From a technical perspective, the Daily Relative Strength Index (RSI) has bounced back from the 55 level, indicating a potential positive momentum for the stock.
Therefore, it is advisable to consider buying JKLAKSHMI within the 880-890 range, with an upside target of 960 and a stop-loss at 845 on a daily closing basis.
Aether
Over the past few weeks, Aether has shown a consistent uptrend by forming higher highs and higher lows, which is a positive indicator of its market performance. Recently, Aether has surpassed its previous consolidation range high of 865 and is now trading around 896.
From a technical analysis perspective, the Relative Strength Index (RSI) on the daily chart has shown a bullish divergence, suggesting a potential upward momentum that investors might find appealing. Given these indicators, investors are advised to consider buying Aether shares within the range of 880-900, with the expectation that the price could rise to a target of 1010.
To manage risk, it is prudent to set a stop-loss order near 830 based on daily closing prices to protect against potential downside movements.
BalaMines
BALAMINES has recently exhibited two significant technical analysis signals that indicate a potential bullish shift. Firstly, there is a bullish divergence on the weekly Relative Strength Index (RSI) near the 40 level. This divergence suggests that while the stock’s price was declining, the RSI was starting to increase, indicating a possible reversal in momentum.
Secondly, the stock has broken through a bearish trend line that had been in place for approximately 2.75 years. This trend line breach is a critical signal, suggesting that the long-term bearish trend may be reversing to a bullish trend.
Based on these technical indicators, investors and traders are advised to “go long” on BALAMINES, purchasing shares within the price range of 2300-2350 rupees.
The stock is projected to have an upside target of 2650 rupees per share, highlighting a significant profit potential. To mitigate risk, it is recommended to place a stop-loss near 2160 rupees per share on a daily closing basis, ensuring protection against potential adverse movements.
(Disclaimer: Jigar S Patel is a senior manager of equity research at Anand Rathi. Views expressed are his own)
First Published: Jul 11 2024 | 6:43 AM IST
