Jubilant FoodWorks
Jubilant FoodWorks has two key technical analysis signals: a bull divergence on the daily Moving Average Convergence Divergence (MACD) indicator and a violation of a bearish trend line that had been in place for 3-4 months.
A bull divergence occurs when the stock price forms lower lows while the MACD indicator forms higher lows, indicating a potential reversal from a downtrend to an uptrend. The breach of the bearish trend line suggests a potential shift in the stock’s direction from bearish to bullish.
Based on these signals, we advise investors / traders to “go long” in Jubilant FoodWorks within the price range of Rs 522-532 per share. Additionally, upside target of Rs 600 per share, indicating the potential profit opportunity. To manage risk, a stop-loss is advised to be placed near Rs 485 per share, on a daily closing basis.
Godfrey Phillips
At the current juncture, Godfrey Phillips is finding support around its previous breakout zone of Rs 3,300-3,400, which indicates a consolidation phase. On the weekly chart, the stock is consistently trading above the middle Bollinger band, suggesting a bullish trend as this middle band often represents a key support level.
On the daily chart, the Stochastics indicator has given a bullish crossover near the oversold zone, signalling a potential upward movement in the stock price. Given these technical indicators, it is advised to buy Godfrey Phillips in the range of Rs 3,630-3,660. The anticipated upside target is Rs 3,850, and it is recommended to set a stop-loss at Rs 3,545 based on daily closing prices to manage risk.
CIE Automotive India
A couple of weeks ago, CIE Automotive India experienced a breakout from its previous trading range of Rs 470-505, subsequently reaching a high of approximately Rs 557. This upward movement suggests a significant shift in momentum.
Recently, the stock has revisited the breakout range, reaffirming the legitimacy of the breakout as it found support at this level. Additionally, the stock has been consolidating above the middle Bollinger band, which is typically viewed as a positive indicator, signifying underlying strength and potential for further gains.
From a technical perspective, the daily Stochastics indicator has shown a bullish crossover just near being oversold zone, indicating a bullish bias and potential for upward price movement. Based on these observations, it is recommended to buy CIE Automotive India within the range of Rs 525-535. The upside target is set at Rs 575, while a stop-loss should be placed at Rs 509 on a daily close basis to manage risk effectively.
(Jigar S Patel is a senior manager of equity research at Anand Rathi. Views expressed are his own)
First Published: Jun 06 2024 | 6:24 AM IST
