Posted on March 6, 2025, by Niftynews
Stocks to buy for medium-term: Anand Rathi, a well-known brokerage firm, has identified four stocks with a strong technical outlook that could provide up to a 26% upside in the next 6 to 9 months. The stock picks include Gujarat Mineral Development Corporation (GMDC), JSW Energy, Premier Energies, and JBM Auto. These recommendations are based on their strong technical parameters and the potential for significant gains in the medium-term horizon.
Stocks to Buy for Medium-Term: Technical Picks by Anand Rathi
Anand Rathi’s analysis is based on technical chart patterns, and the brokerage firm has recommended buying these stocks for the next 6 to 9 months while maintaining stop-loss levels to manage risk. Here’s a closer look at the stocks to buy:
1. Gujarat Mineral Development Corporation (GMDC)
- Recommendation: Buy
- Stop-Loss (SL): ₹210
- Target Price: ₹315
GMDC shares saw a major breakout above ₹230 in 2023, rallying towards ₹500. Currently, GMDC is retesting the breakout zone and trading near the 200-week EMA (Exponential Moving Average). A reversal candlestick pattern is forming, indicating a potential upside.
Buy Recommendation: Accumulate GMDC shares in the ₹240 – ₹250 range, with a stop-loss at ₹210, for a potential target of ₹315 over the next 6 months.
2. JSW Energy
- Recommendation: Buy
- Stop-Loss (SL): ₹415
- Target Price: ₹580
JSW Energy has seen a 49% correction from its peak of ₹804.90. However, the stock is now rebounding from the 200-weekly EMA, forming an inverse head and shoulders pattern, which is considered a bullish signal.
Buy Recommendation: Consider entering the stock in the ₹490 – ₹500 range, with a target price of ₹580, and a stop-loss below ₹415 on a daily closing basis.
Additional Consideration: If JSW Energy tests ₹445, this presents a good opportunity to add more to the position, as the technical structure suggests a strong recovery.
3. Premier Energies
- Recommendation: Buy
- Stop-Loss (SL): ₹790
- Target Price: ₹1,100
Premier Energies shares have corrected from the ₹1,350+ zone and are now trading near ₹900. The stock remains oversold on lower time frames, with strong support forming in the ₹800 – ₹820 zone.
Buy Recommendation: Traders are advised to accumulate Premier Energies shares in the ₹920 – ₹880 range, with a stop-loss at ₹790, for a potential upside target of ₹1,100 within the next 6 – 9 months.
4. JBM Auto
- Recommendation: Buy
- Stop-Loss (SL): ₹470
- Target Price: ₹650
JBM Auto shares have seen a significant correction from the ₹1,200+ zone and are now highly oversold. The weekly RSI is near its 2020 lows, and the daily RSI shows a positive divergence, indicating a potential reversal in the stock price.
Buy Recommendation: Accumulate JBM Auto shares in the ₹520 – ₹540 range, with a stop-loss at ₹470, expecting a recovery towards ₹650 in the next 6 – 9 months.
What Should You Do as an Investor?
For those considering medium-term investment opportunities, the stocks recommended by Anand Rathi show considerable upside potential based on their technical charts and current market conditions. The 4 technical stock picks—GMDC, JSW Energy, Premier Energies, and JBM Auto—have varying target prices, ranging from ₹315 for GMDC to ₹650 for JBM Auto.
Stock Performance Outlook:
- GMDC: Target of ₹315 offers up to 26% upside.
- JSW Energy: Target of ₹580 provides 17% upside potential.
- Premier Energies: Target of ₹1,100 offers a 22% upside.
- JBM Auto: Target of ₹650 suggests 21% upside potential.
Key Takeaways:
- The medium-term outlook for these stocks appears strong, with significant upside potential based on technical analysis.
- For all stocks, maintaining stop-loss levels is crucial to minimize risks.
- These stocks are well-positioned to capitalize on market trends and industry growth.
- Timing your entry is essential, especially for stocks like JSW Energy where price levels such as ₹445 offer an opportunity to add to positions.
Conclusion:
Investors looking for medium-term stock picks should consider JSW Energy, Premier Energies, GMDC, and JBM Auto. These stocks are expected to perform well over the next 6 to 9 months, with solid technical setups and potential upside. However, it’s essential to stay updated on market conditions and manage risks by adhering to stop-loss levels as recommended by experts. Always conduct thorough research and consult with a financial advisor before making any investment decisions.
