Kolkata: The Indian stock market is in the grip of continuous and prolonged fluctuation. On September 1, the market again experienced fluctuations and at the end of the trading session, Sensex 30 fell 12.99 points, or 0.2%, to close at 76,944.28. The Nifty 50 fell 126.80 points, or 0.01%, to 24,055.80. Amid this market weakness, Sachin Gupta, VP of Choice Equity Broking, has recommended buying three stocks: Garware Technical Fibres, Balaji Amines and Quality Power Electrical Equipments.
Based on the current technical setup, further upside potential is predicted for all three stocks.
Garware Technical Fibres (GARFIBRES)
Closing price on Sept 1: Rs 850
Garware Technical Fibres maintains a strong bullish structure on the daily chart. Following the recent correction, the stock has been consistently making higher highs and higher lows, indicating a bullish trend. The stock remains above the 20, 50, 100, and 200 EMAs. The positive alignment of all these average levels confirms a strong uptrend in the stock.
Meanwhile, the RSI (14) has risen to 66.42 and is holding above its signal line. This indicates strong buying interest and investor interest in the stock. Given this technical setup, further upside is expected. A buy recommendation is given for GARFIBER at Rs 843, with a stop loss of Rs 805 and a target price of Rs 919.
Balaji Amines (BALAMINES)
Closing price on Sept 1: Rs 2,400.20
Balaji Amines Ltd. is also reasserting bullish momentum on the daily chart. The stock has made a strong comeback from a key support zone and is now retesting its recent swing high. The stock is trading above the 20, 50, 100, and 200 EMAs. The positive alignment of all these EMAs indicates a strong uptrend.
Its RSI has reached 62.65 and is above the signal line. This indicates strong momentum and buying activity in the stock. Based on the trend, further upside momentum is likely. Balaji Amines is recommended to buy at Rs 2,409. The stop loss is set at Rs 2,315 and the target price is set at Rs 2,599.
Quality Power Electrical Equipments (QPOWER)
Closing price on Sept 1: Rs 1,485.40
QPOWER has issued a strong bullish continuation breakout on the daily timeframe, setting new swing highs near Rs 1500. The stock is trading above all key 20, 50, 100, and 200 EMAs. All of these EMAs are sloping upward, confirming a strong bullish trend in the stock.
QPOWER’s RSI has reached 74.63, indicating a strong bullish zone. Buying pressure and volume are continuing to strengthen. Given the current trend, further upside momentum is likely. A buy recommendation is given for QPOWER in cash at Rs 1,488. The stop loss is set at Rs 1,430 and the target is set at Rs 1,604.