Buy Ideas for July 8: HDFC Life, Cipla, SJVN; Check Target Prices Here

As the markets continue to fluctuate, investors are on the lookout for stocks that have the potential to make a significant impact. In this article, we will explore three stocks that have recently broken out of their consolidation phases, signaling a potential bullish trend. Our experts at Anand Rathi have analyzed these stocks and provide their recommendations for investors.

HDFC Life

HDFC Life has recently given a clean breakout on the weekly chart, indicating a potential bullish trend. Prior to this breakout, the stock had been consolidating for two weeks, precisely around the 200 Exponential Moving Average (EMA) on the weekly scale. This consolidation phase built a solid foundation for the subsequent breakout. The stock has managed to close above the last three weeks’ high of Rs 603 and is currently positioned near the Rs 607 mark. Furthermore, significant violations of bearish trendlines have been observed in both the price action and the Relative Strength Index (RSI) on the weekly chart.

These trendline breaches, which persisted over the past six months, further reinforce the bullish outlook for HDFC Life. Based on this analysis, we recommend going long on HDFC Life within the price range of Rs 595-610, with an upside target of Rs 660. It is prudent to set a stop-loss at Rs 575 on a daily closing basis to manage risk.

Cipla

Cipla has recently displayed a clean breakout on the daily chart, signaling a potential bullish trend. Prior to this breakout, the stock had been consolidating for seven days, precisely on the 50-day Exponential Moving Average (DEMA) on the daily scale. This consolidation phase built a solid foundation for the subsequent breakout. The stock has managed to close above the last seven days’ high of Rs 1500 and is currently positioned near the Rs 1510 mark. Additionally, the daily RSI has reversed from 40 levels and is currently placed near 55 levels, which is a positive sign for Cipla.

Based on this analysis, we recommend going long on Cipla within the price range of Rs 1500-1510, with an upside target of Rs 1600. It is prudent to set a stop-loss at Rs 1460 on a daily closing basis to manage risk.

SJVN

SJVN has recently experienced a breakout on the daily chart, indicating a potential bullish trend. Prior to this breakout, the stock had been consolidating for 18 days, precisely on the 50-day Exponential Moving Average (DEMA) on the daily scale. This consolidation phase created a solid foundation for the subsequent breakout. The stock closed above the 18-day high of Rs 139 and is currently positioned near Rs 142.

Additionally, the daily Relative Strength Index (RSI) has reversed from 40 and is now near 60, which is a positive indicator for SJVN. Based on this analysis, we recommend taking a long position on SJVN within the price range of Rs 140-142, with an upside target of Rs 155. To manage risk, it is advisable to set a stop-loss at Rs 134 on a daily closing basis.

Disclaimer

The views expressed in this article are those of Jigar S Patel, a senior manager of equity research at Anand Rathi.

Historical Context:

The article discusses three stocks, HDFC Life, Cipla, and SJVN, which have recently broken out of their consolidation phases, indicating a potential bullish trend. The analysis is based on technical indicators such as Exponential Moving Averages (EMAs) and Relative Strength Index (RSI) on the weekly and daily charts. The article recommends going long on these stocks within specific price ranges, with upside targets and stop-loss levels to manage risk.

Summary in Bullet Points:

• HDFC Life:
  • Recently broke out of a two-week consolidation phase on the weekly chart
  • Closed above the last three weeks’ high of Rs 603 and is currently near Rs 607
  • Trendline breaches on the weekly chart reinforce the bullish outlook
  • Recommendation: Go long within Rs 595-610, target Rs 660, stop-loss at Rs 575
• Cipla:
  • Recently broke out of a seven-day consolidation phase on the daily chart
  • Closed above the last seven days’ high of Rs 1500 and is currently near Rs 1510
  • Daily RSI has reversed from 40 levels and is currently near 55 levels
  • Recommendation: Go long within Rs 1500-1510, target Rs 1600, stop-loss at Rs 1460
• SJVN:
  • Recently broke out of an 18-day consolidation phase on the daily chart
  • Closed above the 18-day high of Rs 139 and is currently near Rs 142
  • Daily RSI has reversed from 40 levels and is currently near 60
  • Recommendation: Go long within Rs 140-142, target Rs 155, stop-loss at Rs 134

Note: The article is based on technical analysis and is not a recommendation to buy or sell these stocks. Investors should conduct their own research and consider their own risk tolerance before making any investment decisions.