Top Stock Picks for Friday: Allied Blenders and One More Recommendation to Watch!
On Thursday, domestic markets exhibited a modest rebound primarily due to dip-buying, as easing oil prices provided some respite despite ongoing geopolitical tensions stemming from the US-Iran situation. This recovery, however, seems to be fragile, with significant weight placed on an increasingly unstable global economic backdrop. Notably, banking and pharmaceutical sectors drew investor interest, buoyed by solid earnings and favorable measures from the Reserve Bank of India (RBI), while a noticeable shift towards defensive sectors characterized recent trading activity. Conversely, the mid- and small-cap segments experienced profit booking after a period of robust performance, signaling potential near-term consolidation within those categories.
In light of current market conditions, two stock recommendations have emerged for investors eyeing potential bullish movements. The first recommendation is for Allied Blenders and Distillers Limited, currently priced at Rs 608.45, with a stop-loss set at Rs 585 and a target of Rs 655. The stock has recently broken through a significant resistance level at Rs 595, supported by an uptick in volume that hints at strong institutional interest. Furthermore, the stock’s position above both short- and long-term exponential moving averages (EMAs) indicates a favorable market sentiment, while the Relative Strength Index (RSI) exceeding 60 suggests that upward momentum is in play.
The second recommendation highlights JB Chemicals and Pharma, priced at Rs 2252.7, with a stop-loss at Rs 2180 and a target of Rs 2400. This stock has shown resilience by breaking above an intermediate resistance near Rs 2,230, closing robustly at Rs 2,252.70. Similar to Allied Blenders, JB Chemicals benefits from expanding volume trends on up-days, reinforcing underlying buying interest. It also maintains a strong position above its EMAs, which collectively indicate a bullish alignment. The rising RSI further supports the notion of sustained upward momentum, making it an attractive option for investors looking to capitalize on growth within the pharmaceutical sector.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)