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Wednesday, October 27, 2021

Hot Stocks: Indications to stay bullish, bet on these stocks for double digit gains in the short term

Vinay Rajani, HDFC SECURITIES

On October 4, the Nifty closed at the level of 17,691 with a gain of about 1 per cent. After the formation of Doji candlestick pattern on October 1, follow-up buying was seen in Nifty, due to which the Morning Star candlestick pattern was seen on the daily chart. This pattern is a sign of continuation of the bullish trend.

Nifty has managed to hold higher tops and higher bottoms on the daily chart. Along with this, it has also managed to stay above the upward sloping trendline. There is support for Nifty at the 20-day EMA located at 17,500.

Over the past few weeks, the Indian market has been performing much better than its global peers. Nifty Mid and Small Cap have set new all-time highs. The breadth of the market has been very strong for the last few weeks which is a sign of strength in the market. Apart from this, other technical indicators are also indicating the continuation of strength in the market. A bearish trend reversal is not expected in Nifty till it crosses below 17,400. On the upside, resistance is visible for it at the level of 17,900-18,000.

Talking about different sectors, PSU banks, metal and pharma have seen fresh breakouts on the short-term chart. Traders should keep the stocks associated with these sectors on their radar. There can be good trading profit in them. Apart from this, there are signs of continuation in energy, PSE and realty stocks.

Keeping these things in mind, it is advisable to buy Nifty, for this, definitely put a stoploss of 17,400. Sector and stock specific action will be seen in the market in the coming trading sessions. If Nifty crosses the level of 18,000, then it can see the level of 18,500 in the short term.

Today’s three calls which can give strong returns in 2-3 weeks

Gujarat Narmada Valley Fertilizers & Chemicals: Buy | LTP: Rs 448.85 | Buy this stock with a stop loss of Rs 420 with a target of Rs 515, a return of 14.7 per cent in 2-3 weeks.

Gujarat State Fertilizers & Chemicals: Buy | LTP: Rs 134.45 | Buy this stock with a stop loss of Rs 125 with a target of Rs 155, a return of 15.3 per cent in 2-3 weeks.

Tinplate Company of India: Buy | LTP: Rs 309.80 | Buy this stock with a stop loss of Rs 295 with a target of Rs 341, give a return of 10.1% in 2-3 weeks.

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Shehnazhttps://www.businesskhabar.com/
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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