Analyst Recommends 'Buy' for Chambal Fertilisers and Vedanta, Offering Profit Potential

In a recent market analysis, financial expert Jay Thakkar from Sharekhan shared his 'buy' recommendations for two prominent stocks: Chambal Fertilisers and Chemicals and Vedanta. These stock selections are expected to provide profit opportunities in the trading world.

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In a recent market analysis, financial expert Jay Thakkar from Sharekhan shared his 'buy' recommendations for two prominent stocks: Chambal Fertilisers and Chemicals and Vedanta. These stock selections are expected to provide profit opportunities in the trading world.

Thakkar's first recommendation is Chambal Fertilisers and Chemicals, and he justifies it by noting the significant positive changes in the stock's performance. He observes a clear breakout from a downtrend line resistance, positive divergence, increased trading volumes, and substantial long build-up in the derivatives market. Currently, Chambal Fertilisers is trading above Rs 290, demonstrating remarkable strength. Thakkar advises traders to consider buying this stock with a target price range of Rs 310 to Rs 320 while also placing a stop loss below Rs 290 to manage risk.

Over the past month, Chambal Fertilisers has showcased a gain of over 5%, making it an attractive choice for traders looking to capitalize on this momentum.

Thakkar's second recommendation centers around Vedanta, with a focus on short-covering opportunities. Currently trading at around Rs 228, Vedanta offers traders the potential for gains. Thakkar predicts that the stock is likely to approach the range of Rs 240-245 in the near future.

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However, it's important to note that Thakkar's optimism regarding Vedanta stems from short-covering dynamics rather than long-term investment prospects. Vedanta's shares have experienced a decline of more than 3% over the last month. To manage potential risk, Thakkar advises placing a stop loss below Rs 220.

In short, Jay Thakkar's 'buy' recommendations for Chambal Fertilisers and Vedanta highlight the profit potential in these stocks. While Chambal Fertilisers offers an appealing long-term outlook, Vedanta presents short-term opportunities through short-covering strategies. Traders should consider these recommendations as part of their investment strategies for profitable trading sessions.