Some stocks have broken out of longer consolidation ranges or support levels on the technical chart. These stocks are looking better on the chart and have upside momentum.
Best Buy Ideas For Short Term: With the current volatility of the stock market, it is not getting easier to identify the right stocks, especially for short term investors. There is uncertainty in the markets around the world due to the Russia and Ukraine crisis. Which direction will this crisis turn in the near term, it will decide the direction of the market. The effect of geopolitical risk is that crude is rising continuously, due to which inflation is expected to increase manifold. Investors are also cautious about the Central Bank’s stance. However, in the meantime, some stocks have broken out of longer consolidation ranges or support levels on the technical chart. These stocks are looking better on the chart and have upside momentum. Brokerage house Axis Securities has given information about 4 such stocks. You too can invest in these and get double digit returns in 3 to 4 weeks.
Jindal Steel & Power
CMP: Rs 480
Buy Range: Rs 474-464
Stop loss: Rs 425
Upside: 9%-12%
The stock has recently broken out of the 1-year down sloping trend from the level of 450. The breakout has happened with significant volume. The stock is trading above its 20, 50, 100 and 200 day SMA, which shows bullish momentum. Daily strength indicator RSI is also in bullish mode. The stock may soon show a level of Rs 510-525.
GHCL Limited
CMP: Rs 494
Buy Range: Rs 485-475
Stop loss: Rs 443
Upside: 7%–10%
The stock has broken out of Comp & Handle formation from the level of 480 on the weekly chart. This breakout is accompanied by significant volume, which indicates that participation is on the rise. The stock has recaptured its 20 and 200 day SMA. Daily and weekly strength indicator RSI is also in bullish mode. The stock may soon touch the level of 515 to 530.
Cipla Limited
CMP: Rs 1049
Buy Range: Rs 1030-1010
Stop loss: Rs 974
Upside: 8%–13%
The stock has broken out of the 1-year consolidation zone (1000-850) on a weekly closing basis. This breakout is accompanied by significant volume, which indicates that participation is on the rise. The stock is trading above its 20, 50, 100 and 200 Day SMA, which shows bullish sentiment. Daily and weekly strength indicator RSI is also in bullish mode. A price of Rs 1100-1150 can be seen in the stock soon.
Mphasis Limited
CMP: Rs 3280
Buy Range: Rs 3285-3225
Stop loss: Rs 3095
Upside: 6%–8%
On the weekly chart, the stock has a breakout of the triangular pattern from the level of 3250 on the closing basis. The stock is trading above its 20, 50, 100 and 200 Day SMA, which shows bullish sentiment. Daily and weekly strength indicator RSI is also in bullish mode. A price of Rs 3440-3520 can be seen in the stock soon.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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