Strong technical chart patterns have led SEBI-registered analyst Vinay Kumar Taparia to be bullish on several stocks, including EMS, Torrent Pharmaceuticals (NSE:TORP), Rallis India (NSE:RALL), and others.
These breakouts are supported by volume and momentum indicators, which suggest multi-month upside ahead. However, Taparia cautions that failure to hold certain key support levels may negate the current bullish view.
Let’s take a look at his stock recommendations:
Mrs Bector’s Food Specialities
Bector Foods saw a good breakout on its weekly chart. The Relative Strength Index (RSI) has also seen a breakout. The stock is expected to move to ₹1,850 levels within the next 12 to 18 months. But a weekly close below ₹1,400 will negate this view.
EMS Limited
EMS has witnessed a superb cup and handle breakout on its daily chart with huge volumes. The stock can rise to ₹700-₹750 in the short term, but a close below ₹695 will negate this view.
Rallis India
Rallis posted a strong show in its June quarter results, and the stock tested new highs driven by earnings, followed by some profit booking. However, the stock has seen buying and formed a Morning Star pattern on the daily chart. It has also given a breakout on the weekly chart. The analyst is bullish on the stock for both the short and long term, but a close below ₹330 will negate this view.
