Stocks that hit fresh highs include Vedanta, which rose nearly 3%, Swan Energy, which closed with gains of over 9%, and Eris Lifesciences, which ended 1.4% higher on Wednesday.
We spoke to an analyst on how one should look at these stocks the next trading day entirely from an educational point of view:
Analyst: Hariprasad Kizhakkethara, SEBI Registered RA (INH200009351), Director of Livelong Wealth
Vedanta: Strong Growth with Opportunity at Rs 524
Vedanta, a leader in the metals and mining sector, has posted stellar results, with PAT up 124.1% YoY to Rs 2,980.80 crore and OCF at Rs 35,654 crore. Over the past year, the stock surged 106.84%.
Currently trading near its 52-week high of Rs 524, the stock presents a fresh entry point with a target of Rs 569 and a stop-loss of Rs 489. While promoter pledging remains a concern, Vedanta’s strong fundamentals, including a 96% dividend yield and sector dominance, make it a strong pick.
Swan Energy: Hold
Swan Energy Ltd. is a strong candidate for holding, supported by a solid technical analysis setup. Currently trading near its 52-week high of Rs 780.40, the stock has shown consistent upward momentum, making it an ideal candidate for retention in portfolios.
Investors can hold the stock with a target of Rs 893 while trailing the stop-loss to Rs 697. This approach offers capital protection while maximizing potential gains as the stock progresses. Regular monitoring of price movements is advised to align with market conditions.
Traders can target Rs 893 in the short term while maintaining a strict stop-loss at Rs 697 to manage risks effectively. This setup provides a balanced risk-to-reward ratio, making it an attractive trade opportunity. Be sure to monitor the stock for price movements and market conditions.
Eris Lifesciences: Promising Swing Trade Opportunity
Eris Lifesciences, a leading pharmaceutical company specializing in branded formulations for chronic and lifestyle-related therapies, is an attractive pick for swing traders. The company reported a net profit of Rs 96 crore in Q2 FY24, up from Rs 89 crore in the previous quarter, reflecting steady growth.
With a strong operating profit margin of 36%, Eris demonstrates robust operational efficiency, despite concerns over rising debtor days, which increased from 61.2 to 76.7.
The stock, currently trading at Rs 1,522, presents a promising short-term opportunity with a target of Rs 1,664 and a stop-loss at Rs 1,439. This setup offers a favorable risk-to-reward ratio for swing traders.
Eris’s consistent performance and niche market focus further enhance its appeal. Traders are advised to monitor the stock closely while adhering to the recommended stop-loss level for effective risk management.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times)