1000% Dividend; 1 Largecap, 1 Midcap Stock Are Hot To Buy; LKP Securities Explains Why

Tech Mahindra, a large-cap, and CreditAccess Grameen, midcap, stocks are among the technical picks of brokerage LKP Securities. Tech Mahindra shares have touched a breakout to swing upward ahead, while CreditAccess Grameen has broken from its consolidation phase, making the two stocks attractive to buy. The IT giant Tech Mahindra is also among the top dividend yield and high dividend-paying companies in the large-cap basket. Both Tech Mahindra and CreditAccess have given strong returns so far in 2023.

Rupak De, Senior Technical Analyst at LKP Securities has added two stocks to his technical picks. These are:

1. Tech Mahindra (Buy At Rs 1,257 for Target Price of Rs 1,320 with Stop Loss of Rs 1,224)

TECHM has recorded a breakout to a swing high on the daily chart, aligning with the bullish trend in the IT sector. Furthermore, the stock has risen above the 21-day Exponential Moving Average (EMA) on the daily timeframe. A potential positive crossover in the RSI (Relative Strength Index) could further bolster the positive momentum in the stock. On the upside, the stock may advance towards 1,320. On the downside, there is support at 1,224.

On Wednesday, Tech Mahindra settled at Rs 1248.15 apiece, down by 0.63% on BSE. The stock is a couple of rupees away from its 52-week high of Rs 1,270.35 apiece.

Year-to-date, Tech Mahindra stock has gained by nearly 24% on BSE. Taking into LKP's target price, Tech Mahindra has the potential for a nearly 6% upside ahead.

Tech Mahindra is among the top dividend yield stocks that have paid hefty dividends in the last 12 months under the large-cap basket. As per Axis Securities report, Tech Mahindra is the sixth highest dividend yield firm with a yield of 4% and Rs 50 dividend per share in 12 months under the large-cap.

For FY23, the dividend payout was 1,000% or Rs 50 per share to shareholders.

2. CreditAccess Grameen: (Buy At Rs 1,464 for a Target Price of Rs 1,570 with a Stop Loss of Rs 1,400)

CREDITACCESGRAMEEN stock has broken out from a consolidation phase with a sharp surge in trading volumes, indicating strong buying interest. The momentum indicator RSI (Relative Strength Index) has provided a positive crossover, confirming the shift in momentum towards the bullish side.

The stock has a support level at 1400, which is likely to act as a cushion for the bulls in case of any price retracement. With this breakout and positive momentum, the stock has the potential to reach upside targets of 1530 and 1570.

On BSE, this microfinance stock settled at Rs 1,463.25 apiece, up by 0.84% on Wednesday. The stock is also near its 52-week high of Rs 1,502.30 apiece.

Year-to-date, CreditAccess's share price has rallied by over 61.5% on BSE. Taking into consideration LKP's target price, the stock has the potential for over 7% upside further.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.