Oversold market spurs selective buying as analysts eye breakout stocks
Why it matters: Analysts are recommending specific buy targets and stop losses for five stocks, including Titan Company at Rs 4,270-4,300.
- Titan Company shows strong bullish sentiment with a 0.8% change in Open Interest and a 3.7% price increase in the April Series, driven by anticipation of strong Q4 earnings and Akshaya Tritiya, according to Rajesh Palviya.
- Adani Power (newly inducted in futures) experienced a significant bullish breakout from a five-month congestion zone, with a 98.95% change in Open Interest and 1.67% price increase, supported by long buildup, as noted by Vipin Kumar.
- National Aluminium saw a 4% price rise despite a -14.55% fall in Open Interest, indicating short-covering and a close at its highest weekly level, per Sudeep Shah.
- ABB India exhibits structural bullishness with a 0.3% change in Open Interest and 3.4% price increase, as investors aggressively position for strong Q4 margins from greenfield infrastructure orders, according to Palviya.
- Jindal Steel is expected to continue its uptrend after profit-taking halted near previous breakout levels, with Vipin Kumar suggesting a target of Rs 1,220.
Despite an 'oversold' market, analysts are pinpointing specific stocks for bullish bets, with strong rollovers and technical breakouts signaling investor confidence. Rajesh Palviya of Axis Securities and Vipin Kumar of Globe Capital Market highlight companies like Titan Company and Adani Power, while Sudeep Shah of SBI Securities points to short-covering in National Aluminium, all indicating potential upward momentum.
