Stocks that hit new highs included Vedanta, which rose nearly 3%, Swan Energy, which closed up more than 9%, and Eris Lifesciences, which closed up 1.4% on Wednesday.
We spoke to analysts about how to view these stocks from an educational perspective in the coming trading day.
Analyst: Hariprasad Kizhakkethara, SEBI Registered RA (INH200009351), Director, Livelong Wealth
Vedanta: Strong growth with Rs 524 opportunity.
Vedanta, a leader in the metals and mining sector, posted a stellar performance with PAT up 124.1% YoY to Rs 2,980.8 crore and OCF to Rs 35,654 crore. The stock price has increased by 106.84% over the past year.
Currently trading near its 52-week high of Rs 524, the stock offers a new entry point with a target price of Rs 569 and a stop loss of Rs 489. While promoter pledges remain a concern, Vedanta’s strong fundamentals, including a 96% dividend, make it a strong pick given its yield and sector advantage.
Swan Energy: Hold
Swan Energy is a strong candidate to own, backed by a solid technical analysis system. The stock is currently trading around its 52-week high of Rs 780.40, showing consistent upward momentum, making it an ideal candidate to hold in your portfolio.
Investors can hold the stock with a target of Rs 893 while chasing a stop loss of Rs 697. This approach maximizes the potential gains from rising stock prices while providing capital protection. We recommend that you regularly monitor price movements in line with market conditions.
Traders can target Rs 893 in the short term while maintaining a strict stop loss at Rs 697 to effectively manage risk. This setup provides a balanced ratio of risk and reward, making it an attractive trading opportunity. Always monitor stock price fluctuations and market conditions.
Ellis Life Sciences: Promising Swing Trading Opportunity
Eris Lifesciences is a leading pharmaceutical company specializing in branded formulations for chronic and lifestyle-related treatments, making it an attractive choice for swing traders. The company reported a net profit of Rs 960 crore for the second quarter of FY24, up from Rs 890 crore in the previous quarter, reflecting steady growth.
Eris has a strong operating margin of 36%, demonstrating solid operational efficiency, despite concerns about debtor days increasing from 61.2 days to 76.7 days.
The stock is currently trading at Rs 1,522, with a price target of Rs 1,664 and a stop loss of Rs 1,439, making it a promising short-term opportunity. This setup provides a favorable risk-to-reward ratio for swing traders.
Eris’ consistent performance and focus on niche markets make it even more attractive. Traders are advised to closely monitor the stock while adhering to the recommended stop loss levels for effective risk management.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of Economic Times)
