Top Diwali 2021 stock picks: Indian stock market is knocking on new high everyday. So far this year, both the benchmark indices have gained about 30 per cent. BSE Sensex is trading above 62,000 and Nifty 50 is trading above 18,600 level. Nifty has gained 41.55 per cent since last Diwali. Research and brokerage firm Anand Rathi Shares and Stock Brokers has picked 6 stocks as Diwali 2021 picks. The brokerage firm is positive on banks, FMCG, housing finance, defence, engineering and auto sectors from the outlook for the next 12 months. A portfolio of these stocks can give you huge profits before Diwali.
IDFC First Bank
Buy, Entry range: Rs 49-45, Stop loss: Rs 37, Target 1: Rs 57, Target 2: Rs 67, Upside: 39%
The brokerage firm says that after the breakout in the month of January 2021, the stock is once again going higher. During this process, the stock managed to stay above its 100 week EMA which indicates strength. Investors and traders are advised to buy this stock for about one year.
ITC
Buy, Entry range: Rs 250-240, Stop loss: Rs 200, Target 1: Rs 290, Target 2: Rs 335, Upside: 36%
As per Monthly chart ITC finally managed to cross its 100 month EMA after the correct move for the year 2020. The research firm says that there is a trend line breakout which indicates fresh upside. Regarding Monthly RSI, Anand Rathi Shares and Stock Brokers said that the indicator is on the verge of breaking above the level of 60, which may further strengthen further.
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LIC Housing Finance
Buy, Entry range: Rs 450-430, Stop loss: Rs 350, Target 1: Rs 530, Target 2: Rs 620, Upside: 43%
Anand Rathi Shares and Stock Brokers said that the multi-year chart of LIC Housing Finance shows that most of the time 350 zone is acting as a strong demand point for the counter. The brokerage firm said that the stock has managed to close above its 100 WEMA and has confirmed double bottom formation on the weekly scale. “After a spectacular rally in the realty space, we expect traction to shift to the housing finance space,” the brokerage firm said.
Mazagon Dock Shipbuilders
Buy, Entry range: Rs 265-255, Stop loss: Rs 220, Target 1: Rs 300, Target 2: Rs 340, Upside: 30%
Anand Rathi Shares & Stockbrokers does not have much data on Mazagon Dock Shipbuilders stock but it said that the company’s peers like Bharat Electronics Ltd and Bharat Dynamics are doing very well with respect to price action. “Technically, the stock has crossed the middle line of the weekly rising channel which indicates that it is heading towards the upper end,” the brokerage firm said.
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Rail Vikas Nigam
Buy, Entry range: Rs 34-30, Stop loss: Rs 24, Target 1: Rs 40, Target 2: Rs 48, Upside: 47%
Anand Rathi Shares & Stock Brokers said that the weekly chart has confirmed the Bullish Flag Pattern breakout. “The recent price action was supported by exceptional volumes which indicates that the stock is poised for a fresh upside.”
TVS Motor Company
Buy, Entry range: Rs 584-576 Stop loss: Rs 480, Target 1: Rs 680, Target 2: Rs 780
The brokerage firm says that TVS Motor’s weekly chart has shown that the stock has confirmed a breakout above the 500 mark in the first half of the year 2021. The theoretical target for breakout is near 790. Anand Rathi Shares & Stock Brokers said, “Most other technical parameters are placed positively which indicates low risk buying for few months.”
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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