BLS International, GSFC: 2 stocks by Anand Rathi with up to 23% upside potential

Domestic brokerage firm Anand Rathi Shares and Stock Brokers has suggested two stocks based on technical parameters for the month of June. However, the brokerage said that these stocks are part of its fundamental research coverage and appear strong on technical charts as well.
 

Anand Rathi has suggested buying these two stocks with a view of a 30-90 days period with an upside potential of 17-23 per cent in them. The brokerage cites them as momentum based trading in top fundamental stock Ideas, with a risk reward of 1:2. Here’s what Anand Rathi has to say about these two stocks.
 

BLS International Services | Buy | Target Price: Rs 460-480 | Stop Loss: Rs 360

BLS International Services Ltd has confirmed an inverse Head and Shoulders pattern breakout, indicating a strong bullish reversal setup on the medium-term chart. The stock is now trading above key moving averages, and momentum oscillators are positively aligned, reinforcing the strength of the breakout. The overall structure suggests short-term upside potential with improving sentiment and accumulation visible on the charts. We recommend buying in the Rs 410–Rs 390 range, with a stop-loss at Rs 360 and upside targets of Rs 450 and Rs 480 in the coming months.

Gujarat State Fertilizers & Chemicals | Buy | Target Price: Rs 242 | Stop Loss: Rs 180 

Gujarat State Fertilizers & Chemicals Ltd (GSFC) is showing a falling trendline breakout on the weekly chart, signaling a shift in long-term sentiment, supported by a strong price thrust. Higher High – Higher Low Structure is now confirmed, indicating a clear trend reversal after a prolonged downtrend. On the daily timeframe, the stock has successfully reclaimed both the 200-DMA and 200 SMA, adding strength to the bullish case. We recommend buying in the Rs 210-200 range, with a stop-loss at Rs 180 and upside targets of Rs 242 and Rs 255.