Buy Asian Paints, Bharat Forge, Vardhman Tex: ICICIdirect

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26 Aug, 2025 12:21

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ICICIdirect.com's research reportAsian PaintsAt this weeks low of Rs 778 the stock has tested its important support area being the confluence of 61.8% retracement of the June to August up move placed at Rs 780 levels and the long term rising 52 week EMA currently placed near Rs 770 levels. In the entire up move since August 2013, the stock has attracted strong demand upon testing its 52 week EMA on multiple occasions highlighting the overall bullish price structure.We believe the stock is attractively poised after the recent cool off which helped to work off the overbought conditions developed during June-August rise and provides the platform for resumption of the primary uptrend. We expect the stock to challenge its August 2015 life high of Rs 926 over the coming month thereby it offers a good risk reward set up to ride the next up move.Strategy: Buy Asian Paints in the range of Rs 780-803 for a target of Rs 925 with a stop loss below Rs 735 on a closing basisBharat ForgeThe share price of Bharat Forge has witnessed a sharp pullback from the lower band of the sideways trending channel in place since April 2015. It indicates strong demand emerging at the lower band of last six months consolidation offers fresh entry opportunity for medium-term investors.We expect the stock to resume positive momentum and head towards 1250 levels over the medium term being the upper band of the channel which also coincides with the 78.6% retracement of the entire decline from Rs 1339 and Rs 981 placed at Rs 1250 levelsStrategy: Buy Bharat Forge in the range of Rs 1055-1073 for a target of Rs 1250 with a stop loss below Rs 968 on a closing basisVardhman TextilesThe stock remains in a structural uptrend forming rising peaks and troughs on the long term price charts. While the benchmarks were subject to severe correction in last one month, during the same period the share price of Vardhaman textile has gradually retraced just 38.2% of its preceding up move (651-989) suggesting a healthy corrective phase. The shallow price correction against back drop of steep correction in many mid cap stocks including most of the textile peers, indicates lack of selling pressure and justifies the inherent strength in the stock.We believe the stock has concluded a healthy corrective phase and is set to resume its primary up trend. The price target of Rs 1057 is projected based on 138.2% retracement of recent correction (Rs 989-850).Strategy: Buy Vardhaman Textile in the range of Rs 895-905 for a target of Rs 1050 with a stop loss below Rs 830 on a closing basisFor all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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