Mehul Kothari recommends this strategy on Bajaj Finserv and LTTS

According to the technical analyst from Anand Rathi, Bajaj Finserve should be bought on rise above Rs 12,000, while one should consider buying LTTS on dips near Rs 3,000-mark.

BAJAJFINSV

Buy only above Rs 12,000

Target: Rs 14,000

Stop Loss: Rs 11,000

At this juncture, BAJAJFINSV is seen hovering near the 50 per cent retracement of the entire rally which started from 2020 lows.

On the derivative front, we are witnessing one of the highest built up since OCT 2020. The stock was consolidating at the time of this built up and that indicates possibility of accumulation.

Thus, we advise traders to go long in BAJAJFINSV only above Rs 12,000 with a stop loss of Rs 11,000 for an upside target of Rs 14,000.

LTTS

Buy only on dips near Rs 3,000

Target: Rs 3,500

Stop Loss: Rs 2,750

Currently LTTS is trading near the Rs 3,000 mark which has been previous demand zone. On the weekly scale, the RSI (14) has sneaked below 30-mark and historically the stock has bounced from these levels (apart from year 2020).

Even the daily RSI is displaying positive divergence. Thus, we advise traders to go long in LTTS on dips near Rs 3,000 with a stop loss of Rs 2,750 for an upside target of Rs 3,500.

(Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).