Two stocks are on top of SEBI-registered analyst Krishna Pathak’s watchlist: Angel One and Varun Beverages, as the stocks hover above critical levels. He recommended these stocks during an Ask Me Anything (AMA) session held on Stocktwits on Tuesday.
Let’s take a look at the rationale behind his bullish calls:
Angel One
Angel One is currently trading just below its 9-week exponential moving average (EMA) at ₹2,840, which is also acting as a near-term resistance, Pathak said.
The stock has been consolidating in a range, with resistance around ₹2,720 and strong support near ₹2,500. A round bottom pattern has formed, and the current price action suggests a potential retest of support to validate this setup, he added.
Angel One stock closed 3.5% lower at ₹2,691.80 on Tuesday, declining 8.3% year-to-date (YTD)
Pathak recommended taking up positions at the ₹2,600 - ₹2,620 accumulation zone, where previous buying interest had been observed.
A breakout above ₹2,720 could open the path for further upside, with price targets at ₹2,960, ₹3,080, and potentially ₹3,277 in the short term, a 20% premium considering the upper limit of the target.
However, if the price breaches below ₹2,500, it could signal weakness and trigger a deeper correction, he added.
Varun Beverages
Varun Beverages is trading slightly above its 9-week EMA of ₹450, suggesting early signs of stability, the analyst said. The stock has been consolidating within a broader downtrend, with strong support near ₹310.
Varun Beverages stock had shed over 28% YTD.
The ₹440 - ₹450 zone has previously seen buying interest, making it a potential add-on accumulation range. A breakout above ₹470 could trigger a sharp move toward upside targets of ₹590, ₹645, and eventually ₹715, he added. The upper end of the target represents a 52% premium.
However, Pathak advises caution if the stock breaks below ₹310, as it could lead to a deeper correction. Overall, technical analysis suggests a favorable short-term risk-reward setup.
The shares closed 1.3% lower at ₹458.05.
On Stocktwits, retail sentiment turned ‘bullish’ from ‘neutral’ a week ago.
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