Berger Paints:  

Berger Paints has shown a notable bullish pattern on its weekly chart, particularly near its historical support level of Rs 450. This indicates a strong area where buyers typically come in, preventing the price from falling further.

Recently, the stock has rebounded comfortably from this support level and is now trading near the Rs 500 mark. The Relative Strength Index (RSI), a momentum indicator, has formed an impulsive V-shaped structure on the weekly scale. 

This V-shape pattern in RSI suggests a strong reversal and an increase in buying momentum, making the stock appear attractive at current levels.

Based on these technical indicators, it is recommended to buy Berger Paints within the price range of Rs 485 to Rs 500. The potential upside target for this trade is set at Rs 550, while a stop-loss should be maintained at Rs 465 on a daily closing basis to manage risk.

Campus:

After a period of consolidation in the approximate range of Rs 242-266, Campus has successfully broken out of a bearish trendline that had persisted for 8 months. The stock is now comfortably maintaining its position above this trendline, indicating a strong upward movement. 

From an indicator perspective, the weekly DMI has given bull cross, which is a positive sign for potential gains. Based on this analysis, we recommend that traders and investors consider taking a long position in the range of Rs 277-287. 

The target for this upward move is set at Rs 324, with a stop-loss placed at Rs 260 based on a daily closing price.

Tanla:

Since May 2024, Tanla has been trading within a narrow consolidation range between approximately Rs 880 and Rs 910. This range-bound movement indicates a period of indecision in the market, where buying and selling pressures were evenly matched, preventing the stock from establishing a clear trend. 

Recently, Tanla has broken out of this consolidation range by moving above the Rs 910 level and maintaining its upward momentum. This breakout is a bullish signal, suggesting that the stock may be entering a new upward trend. 

From a technical perspective, the weekly Relative Strength Index (RSI), which measures the stock’s momentum, has shown a reversal from the 40 level, indicating a shift from bearish to bullish momentum. Based on these technical indicators, it is recommended to buy Tanla within the price range of Rs 940 to Rs 960. 

(Disclaimer: Jigar S Patel is a senior manager of equity research at Anand Rathi. Views expressed are his own)

First Published: Jun 13 2024 | 6:18 AM IST