Investors looking for fresh trading ideas have received clear guidance from a leading market expert. Mehul Kothari, DVP of Technical Research at Anand Rathi Shares and Stock Brokers, has identified three standout stocks poised for potential gains in the current market environment. His analysis points to robust technical setups in Kotak Mahindra Bank, Hindustan Unilever (HUL), and Samvardhana Motherson International.
Kotak Mahindra Bank: Breakout Confirms Bullish Momentum
According to Kothari, Kotak Mahindra Bank presents a compelling buy opportunity following a significant technical development. The stock has successfully broken out after a period of consolidation between ₹2070 and ₹2120 and is now trading firmly above this range. Notably, this consolidation phase occurred precisely at the 200-day Simple Moving Average (200-SMA), reinforcing that level as a zone of strong demand.
The momentum indicator, the Relative Strength Index (RSI), adds further conviction. It has crossed above its previous swing high and is currently positioned near the 60 mark, signalling an improvement in bullish momentum. This alignment of a price breakout and strengthening momentum supports a projected move towards ₹2250. Kothari suggests buying in the ₹2150–₹2130 range with a stop loss at ₹2070 over a 90-day timeframe.
Hindustan Unilever: A Confluence of Support and Breakout
Hindustan Unilever (HUL) is another blue-chip pick, showcasing a powerful combination of long-term support and a fresh breakout. The stock has established a sturdy base around its key long-term moving averages—the 200-day Exponential Moving Average (200-DEMA) and the 200-SMA. This base-building highlights substantial long-term support.
The stock has now decisively broken out of its recent trading range, reflecting renewed buying interest and solidifying the bullish structure. Momentum indicators are also aligning favourably. The RSI is displaying a bullish divergence, indicating that downward pressure is fading. Simultaneously, the Moving Average Convergence Divergence (MACD) has triggered a bullish crossover, hinting at a potential trend reversal. Investors may consider long positions in the ₹2470–₹2450 zone for a target of ₹2575, with a stop loss placed at ₹2399.
Samvardhana Motherson: Weekly Chart Breakout Signals Strength
For those seeking opportunities beyond the banking and FMCG sectors, Samvardhana Motherson International offers a promising technical picture. The stock has delivered a clean breakout on its weekly chart after nearly two months of sideways consolidation. Throughout this consolidation phase, the cluster of 10 and 20-day Exponential Moving Averages (DEMA) on the weekly timeframe consistently acted as support, suggesting sustained accumulation by investors.
The weekly RSI has also broken past its prior swing high and is now hovering around 67, confirming that momentum is gathering strength. With both price structure and momentum indicators in sync, the stock presents a favourable setup for a potential rally. The recommended strategy is to buy in the ₹117–₹115 range, aiming for a target of ₹128, while maintaining a stop loss at ₹108 over the next 90 days.
Key Takeaways for Traders
Mehul Kothari's analysis underscores three distinct yet robust technical setups across different sectors. Kotak Mahindra Bank offers a classic breakout play, Hindustan Unilever combines foundational support with a range breakout, and Samvardhana Motherson exhibits strength from a multi-week consolidation. Each recommendation comes with clearly defined entry zones, stop-loss levels, and price targets, providing a structured approach for traders and investors. As always, market participants are advised to combine such technical views with their own research and risk management strategies.
