Due to the rise in gold, some bullion shares are once again in demand. Momentum is expected to remain in them going forward.
Gold Stocks in Demand: Due to geopolitical tension, where there has been pressure in the equity market. At the same time, the demand for gold has increased once again. So far this year, gold has gained 10 percent on MCX, while its prices in the spot market have also increased by more than 8 percent. Due to the rise in gold, some bullion shares are once again in demand. Momentum is expected to remain in them going forward. Experts believe that due to the poor global equity market sentiment, gold is going to continue to rise. In such a situation, in the coming few months, select bullion stocks can run, which are directly linked to the gold price.
Gold may touch the level of 2100 dollars
Anuj Gupta, VP-Research, IIFL, says that so far this year, double digit returns have been given in gold. Talking about the domestic market, gold had reached Rs 55000 per 10 grams on MCX just a few days ago. Although right now it is trading around Rs 52525 on MCX after realizing some profits. But its near term outlook is strong. In the next 2 to 3 months, where gold can touch the price of $ 2050 an ounce to $ 2100 an ounce in the international market. At the same time, on MCX, it can cross the 57000 level once again. Due to pressure on equity market, safe haven demand is expected to remain in it. He has advised to invest in Titan, Kalyan Jewelers and Radhika Jeweltech.
Titan
The share price of Titan has increased by more than 10 percent in the last 2 months and is currently trading at the level of Rs 2493. Technically the stock is currently in positive zone and there is upside momentum from here. Fundamentally this share is a profitable statement. Titan can show a level of Rs 2700 to Rs 2800 in the next 5 to 6 months. Investors can buy or hold shares for this target with a stop loss of Rs 2150.
Radhika Jeweltech Ltd
Radhika Jeweltech has climbed 28 percent so far in the year 2022. At present it is trading at the level of 161. Fundamentals of the stock are looking good. For the quarter ended December 31, 2021, the company’s revenue from operations grew by 41 per cent to Rs 92 crore. While PAT has increased by 34 percent to Rs 11.27 crore during this period. Technically there is an uptrend in the stock and better upside is expected from here. In the coming few months, the stock may touch the level of Rs 190 to Rs 200, for this target, investors should buy in the range of Rs 140 to Rs 150 with a stop loss of Rs 118.
Kalyan Jewelers
Kalyan Jewelers has achieved a growth of 16 percent in PAT and 17 percent in revenue as compared to the same quarter last year. Technically the share price is in oversold zone. In the last few trading days, it is recovering from the lower levels and trading around the level of Rs 61. Technically, recovery is expected in this stock. Invest in the next 2 to 3 months by setting a target of Rs 80 to Rs 85 for the stock. For this put stoploss at Rs.44. The current price for entry in the stock looks reasonable.
(Disclaimer: Stock investment advice is given by experts. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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