On the special occasion of Ganesh Chaturthi, Sumeet Bagadia of Choice Broking has suggested Asian paintings stocks to buy with a target price of ₹3562/ 3725. “Asian Paints (ASIANPAINT) is currently trading at ₹3244 and has formed a symmetrical triangle pattern on the monthly chart with significant volume, indicating a strong bullish trend,” Bagadia said in a note.
The Choice Broking analyst went on to say that the break above ₹3250 could potentially push the stock higher ₹3562 and ₹3725 levels, with immediate resistance at ₹3400. On the downside, critical support levels are at ₹3100 and ₹3020.
Asian paintings Shares closed Friday’s trading session in the green. Shares closed in the green ₹3,266.50 on September 6, compared to the previous close at ₹3,238.25 on September 5.
Stocks have been rising in recent trading sessions, boosted by a sharp drop in crude oil prices, driven by concerns about declining global demand.
What’s behind the rally?
Industries that rely heavily on crude oil, such as the paint industry, can benefit from a drop in oil prices. Since paint production relies on petrochemical products derived from crude oil, a decline in oil prices reduces the cost of key raw materials such as solvents, resins and additives.
“Furthermore, on the daily chart, the stock has broken out of a rounded bottom pattern, indicating even more strength. The Relative Strength Index (RSI) is currently at 56.9, suggesting an upward trajectory and growing buying momentum. Taken together, these technical indicators suggest that ASIANPAINT has the potential to reach the ₹3562 and ₹3,725 short-term objectives,” Bagadia said.
Based on technical analysis and prevailing market conditions, Asian paintings The stock appears to offer a promising buying opportunity for those targeting a price target of ₹3562 and ₹3725, Bagadia believes.
“A prudent strategy would involve considering buying opportunities on dips around the ₹3175. However, it is essential to implement prudent risk management strategies to effectively navigate potential market fluctuations,” he said.
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