Stocks to Buy: Authum Investment & Infrastructure Ltd. (AIIL) and APL Apollo Tubes Ltd. are among the top stock picks recommended by Kapil Shah, Technical Analyst at Emkay Global, for positional investors. AIIL has witnessed a breakout above a key resistance zone and is showing improving momentum, while APL Apollo is stabilising near a crucial support area after a healthy correction, offering a favourable risk-reward setup for medium-term gains.
Shah said, “AIIL is displaying a constructive technical setup after undergoing a healthy consolidation over the past several months. The stock has successfully reclaimed and sustained above its 20, 50, 100, and 200-day EMAs, indicating that the intermediate trend has turned positive. The convergence of these moving averages near the Rs 510–530 zone is expected to provide a strong demand base on any pullback.”
“Price has also moved above the key resistance around Rs 512, which had acted as a supply zone in recent months. This breakout, followed by sustained trading above the breakout level, suggests a transition from consolidation to the next leg of the uptrend. The recent improvement in volumes further strengthens the validity of the breakout,” he added.
According to Shah, “Momentum indicators are also supportive. The 14-day RSI is holding above the 50 mark, reflecting improving buying momentum without entering overbought territory, leaving room for further upside. From a risk-reward perspective, accumulating the stock in the Rs 550-530 range offers an attractive setup. A stop loss at Rs 498, below the recent swing low and key moving average cluster, protects against a failed breakout. On the upside, the stock has the potential to revisit its previous swing high and extend towards the ₹660 level, offering a favorable risk-reward ratio for positional investors.”
- Buy: Rs 550-530
- Stop Loss: Rs 498
- Target: Rs 660
Shah stated, “APL Apollo is witnessing a healthy correction within its long-term uptrend after retracing nearly 23 per cent from its recent swing high. The stock has approached the previous breakout zone around Rs 1,780-1,740, which is expected to act as a strong demand area. Historically, the stock has respected this support zone and has resumed its primary uptrend after similar intermediate corrections.”
“The current price action indicates that selling pressure is gradually fading, with the stock stabilising above this key support band. On the weekly chart, the correction appears to be corrective rather than impulsive, suggesting profit booking instead of a structural trend reversal. The formation of higher lows from the support zone reflects renewed buying interest at lower levels,” he said.
According to Shah, “From a technical perspective, the stock offers an attractive risk-reward setup. Accumulating in the Rs 1,850-1,780 range allows participation near a well-defined support area while limiting downside risk. A stop loss at Rs 1,760, placed below the support zone, protects against a breakdown and invalidation of the bullish structure. On the upside, a sustained move above the recent consolidation can trigger a fresh momentum rally toward Rs 2,130, which coincides with the previous swing high and represents the next major resistance. The setup favors positional investors looking to capitalise on a continuation of the long-term bullish trend.”
- Buy: Rs 1,850-1,780
- Stop Loss: Rs 1,760
- Target: Rs 2,130
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
