Escorts Kubota, Tube Investments and Schaeffler India shares—BUY | Check target prices, how shares look on technical charts

Domestic equity benchmarks Nifty50 and Sensex slipped in the red after trading strongly in the opening session. The benchmarks had jumped over half per cent, led by Nifty Bank which reclaimed 40,000-ark for the first time since November 2, 2021.  

Meanwhile, the Nifty50 was trading around 16650, while the Sensex was lower by around 100 points. 

Outperforming benchmarks, Nifty Midcap and smallcap gained around 0.4% each as India VIX (Volatility Index) traded near 20-mark.  

On the sectoral front, Nifty PSU Bank gained around one per cent, while Metal index jumped half per cent as the market tried to recover. IT was the top loser among sectoral indices with over half per cent cuts. 

Meanwhile, certain stocks came in focus on Monday. These stocks were Escorts Kubota, Tube Investments and Schaeffler India. On Tuesday, shares of Escorts Kubota were trading marginally higher by over half per cent to Rs 2034.40 in BSE intraday trade, Tube Investments traded on 52-week high value of Rs 2569.55 and Schaeffler India gained around one per cent to Rs 3353.70 per share.  

Here is what Jatin Gohil, Technical & Derivative Research Analyst at Reliance Securities, recommends investors should do with these stocks 

Escorts Kubota - Buy  

Continuing its prior rising trend, the stock surpassed its long-term supply zone (Rs1,900-1,950) during the last week and explored uncharted territory, subsequently. Spike in volume and rise in future open interest indicates that major participants are in favor of the bulls. The key technical indicators are positively poised on long-term as well as medium-term charts. The stock has potential to move towards Rs2,300-2,350 zone in the medium-term.  

Due to steady rise, its short-term indicators stuck around the overbought zone and may trigger profit booking. Since Apr’22, the stock respected its 20-day EMA (currently placed at Rs1,845) and moved higher. Fresh long position can be initiated on dips, while existing ones can be trailed with its 20-day EMA for probable rise.      

Tube Investments of India - Buy  

In the last week, the stock formed a bullish continuation pattern-rising three. Later, the stock extended its gain and recorded a high of Rs 2,515. The stock has also witnessed a breakout from bullish flag pattern. The key technical indicators are positively poised on major timeframe charts. This could lead the stock towards its breakout point, which is placed at around Rs2,900.  

In the late-Jun’22, the stock witnessed a bullish moving average ribbon cross-over (between its 20-day, 50-day and 100-day EMAs) and later respecting that ribbon, it moved higher. In case of any decline, the stock will keep finding support between its 20-day and 50-day EMAs, which are currently placed at Rs2,205 and Rs2,075, respectively.  

Fresh long position can be initiated on dips, while existing ones can be trailed with its 50-day EMA for desired action.      

Schaeffler India – Buy  

On 1st Sep’22, the stock witnessed a breakout from narrow range (Rs3,090-2,850) and kept recording new high, subsequently. The stock is trading above its major moving averages, which are sloping upwards. The key technical indicators are in favor of the bulls on long-term as well as medium-term timeframe charts. 

The stock has potential to give 5-7 consecutive upticks on weekly timeframe chart. So far, the stock ended on positive note for straight second week. This could take the stock towards Rs3,600 initially and Rs3,900 subsequently. Since late-Jun’22, the stock respected its 20-day EMA (currently placed at Rs2,981) and later, moved higher. Fresh long position can be initiated on dips, while existing ones can be trailed with its 20-day EMA for expected gain.      

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)