JCI Opens Strong: Top Stocks to Watch for Today’s Market Gains

Businessicy – The Jakarta Composite Index (JCI) on the Indonesia Stock Exchange (IDX) opened with a gain of 7.39 points or 0.10 percent, reaching 7,605.27 on Wednesday morning, as reported by Antara on August 28, 2024. Meanwhile, the LQ45 index, which tracks the performance of 45 leading stocks, rose by 0.83 points or 0.09 percent to 947.35.

JCI Likely to Strengthen

On Tuesday, August 27, 2024, the JCI slightly declined by 0.11 percent to 7,597, accompanied by increased selling volume.

Herditya Wicaksana, an analyst at PT MNC Sekuritas, noted that as long as the JCI remains above its support level of 7,460, it is currently considered to be in wave (v) of wave (i) of wave 3.

“This suggests that the JCI still has the potential to strengthen further, targeting the range of 7,622-7,664,” Herditya stated in his report.

He projected that the JCI would find support at 7,460 and 7,386, with resistance levels at 7,664 and 7,743 this week.

Muhammad Wafi, an analyst at PT RHB Sekuritas Indonesia, observed that the JCI was undergoing a correction. Characterized by a bearish harami cross accompanied by trading volume. Although the JCI has the potential to experience further correction, as long as it stays above the five-day moving average (MA5), it may rebound and continue its bullish phase.

“However, if it breaks below the MA5 support, the index might test the MA20 support, possibly entering a sideways phase,” Wafi added.

He estimated that the JCI’s current trading range would be between 7,500 and 7,700.

A research report from PT Pilarmas Investindo Sekuritas indicated that the JCI might face limited downside potential, with support and resistance levels at 7,455 and 7,675, respectively.

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Stock Recommendations

For today’s stock picks, Herditya recommends PT Amman Mineral Internasional Tbk (AMMN). PT Bank Rakyat Indonesia Tbk (BBRI), PT Telkom Indonesia Tbk (TLKM), and PT Ultrajaya Milk Industry Tbk (ULTJ).

On the other hand, Wafi suggests keeping an eye on PT Chandra Asri Pacific Tbk (TPIA). PT Sumber Alfaria Trijaya Tbk (AMRT), PT Charoen Pokphand Indonesia Tbk (CPIN), and PT Aspirasi Hidup Indonesia Tbk (ACES).

Technical Recommendations

Here are the technical recommendations from MNC Sekuritas:

1. PT Amman Mineral Internasional Tbk (AMMN) – Buy on WeaknessAMMN’s stock rose by 3.27% to 11,050. Supported by increased buying volume, though its gains were capped by the MA60.”As long as it stays above 10,625 as its stop-loss level, AMMN is expected to be in wave (iii) of wave [c] of wave A,” said Herditya.
   • Buy on Weakness: 10,875-11,025
   • Target Price: 11,300, 11,700
   • Stop-loss: Below 10,625
2. PT Bank Rakyat Indonesia Tbk (BBRI) – Buy on Weakness BBRI’s stock corrected by 2.36% to 5,175, with a rise in selling volume. According to Herditya, BBRI is likely in the early stage of wave (iv) of wave [i] of wave C. Making it vulnerable to further correction.
   • Buy on Weakness: 4,910-5,075
   • Target Price: 5,400, 5,550
   • Stop-loss: Below 4,730
3. PT Telkom Indonesia Tbk (TLKM) – Buy on Weakness TLKM’s stock corrected by 0.34% to 2,990, still accompanied by buying volume. Though its movement was restrained by the MA60.”Currently, TLKM is likely in wave [ii] of wave C, making it susceptible to further correction,” he explained.
   • Buy on Weakness: 2,860-2,910
   • Target Price: 3,050, 3,220
   • Stop-loss: Below 2,760
4. PT Ultrajaya Milk Industry Tbk (ULTJ) – Buy on Weakness ULTJ’s stock corrected by 0.55% to 1,800, with an increase in selling volume.”We estimate that ULTJ is currently in the final phase of wave (ii) of wave [iii]. Which means its correction may be limited, with potential for upside,” he commented.
   • Buy on Weakness: 1,745-1,775
   • Target Price: 1,860, 1,930
   • Stop-loss: Below 1,700

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