Stocks to buy: KRBL and Ratnaveer Precision Engineering are two technical stock picks by analysts

Indian stock market benchmark indices, Sensex and Nifty 50, hit fresh record highs on Tuesday led by gains in IT, banking, auto and realty stocks. Broader markets also supported the rally with the midcap and smallcap indices trading over half a percent higher each.

Amid the bullish stock market sentiment, analysts have recommended two stocks to buy based on their technical analysis. These two stocks to buy are KRBL and Ratnaveer Precision Engineering.

Analysts believe the technical charts of these stocks present buying opportunities and they expect an upside potential of up to 22%.

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Here are the two technical stock picks:

Ratnaveer Precision Engineering | Buy | TP: ₹141

After peaking near ₹137 on May 22, 2024, Ratnaveer Precision Engineering shares experienced a significant downturn, declining approximately 30 points, or about 22%. However, in the following two trading sessions, Ratnaveer Precision shares showed some cool off.

From a technical standpoint, the daily stochastics indicated a bullish divergence along with 1:1 leg, suggesting a potential shift in momentum and presenting an attractive buying opportunity, said brokerage firm Anand Rathi.

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Consequently, it advises traders to consider buying Ratnaveer Precision shares within the ₹121-125 range, targeting an upside of ₹141, with a stop-loss set at ₹114 based on the daily closing price, and a timeframe of one month.

Ratnaveer Precision stock is Anand Rathi’s pick for the month and the target price implies an upside potential of 14% from Friday’s closing price.

KRBL | Buy | TP: ₹380

KRBL shares have witnessed decent erosion from the peak of ₹480 to show signs of bottoming out around ₹270 levels and have formed a good base at these levels. It also indicated a positive candle pattern in the daily chart to signify strength and potential to rise further in the coming days, said Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher Pvt. Ltd.

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The RSI has also bottomed out, shown a trend reversal from the oversold zone to signal a buy, and moved to a positive bias zone, Parekh noted.

With good volume activity witnessed, she recommends a ‘buy’ on KRBL shares for an upside target of ₹380, keeping a stop loss of ₹280. The target implies an upside potential of 22.5% from Friday’s closing price.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.