Investors looking for fresh trading ideas may find opportunities in three specific stocks, according to a leading technical analyst. Mehul Kothari, DVP of Technical Research at Anand Rathi Shares and Stock Brokers, has identified CEAT, Endurance Technologies, and HPL Electric & Power as potential buys based on their current chart structures.
CEAT: Reversal from a Critical Fibonacci Zone
CEAT Ltd appears to be setting up for a potential rebound after a significant correction. The stock has declined nearly 17.6% from its recent high of ₹4,438, bringing it into a crucial demand zone between ₹3,940 and ₹3,900. This price band is significant as it aligns with the 50% Fibonacci retracement level of the stock's previous upward move.
Technical indicators are hinting at a possible trend change. Analysts observe early signs of stabilization, with the price action showing a breakout from a falling trendline. The Relative Strength Index (RSI) also mirrors this pattern, suggesting that the downward momentum is flattening out. For traders, the recommended strategy is to buy near the ₹3,940–₹3,900 range. A strict stop-loss should be placed at ₹3,765 to manage risk. If the setup plays out, the price could target a recovery towards ₹4,300 over a period of 30 to 60 days.
Endurance Technologies: Strong Support Confluence
Endurance Technologies is another stock showing promising technical characteristics after a pullback. The share price has corrected approximately 14.5% from its peak of ₹2,986 and is now hovering around the ₹2,680–₹2,650 support zone. This area represents a powerful confluence of technical factors, including the 38.2% Fibonacci retracement level, the 200-day exponential moving average (DEMA), and a region where the stock previously staged a breakout.
Further strengthening the bullish case is the emergence of positive divergence on key momentum oscillators. Both the RSI and the MACD are displaying divergence, which often signals weakening selling pressure and can precede a trend reversal. The advised entry zone is ₹2,680–₹2,650, with a stop-loss at ₹2,545. The anticipated upside target from this base formation is ₹2,850, with a similar 30–60 day horizon.
HPL Electric & Power: Signaling a Major Trend Shift
HPL Electric & Power presents a compelling case for a trend reversal after a deep correction. The stock witnessed a sharp decline of about 42% since July 2025, finally reaching a key demand zone that was last tested in February 2025. This historical zone has previously attracted strong buying interest.
The technical picture has recently improved with a notable development: the stock has broken above its prior swing high. This move suggests the beginning of a potential trend shift rather than just a temporary relief rally. The daily RSI has also broken above its previous swing levels, indicating strengthening momentum and renewed accumulation by market participants. The suggested buy range is ₹405–₹400. Investors should protect their capital with a stop-loss at ₹375. If the structure holds, the stock could aim for a target of ₹460 in the coming trading sessions.
Disclaimer: The recommendations and views expressed are solely those of the individual analyst and do not represent the views of The Times of India. Investors are advised to consult with certified experts before making any investment decisions.
