1 Luggage And 1 Auto Ancillaries Stock To Buy For Upto 20% Upside By HDFC Securities

Indian indices after the announcement of the October MPC outcome, with repo rate kept unchanged and accommodative stance being continued as long as necessary, ended at record high. Meanwhile HDFC Securities has recommended positional picks based on technical analysis - one stock from the auto ancillary space and the other a luggage manufacturing firm.

Know about the recommended scrips and why the brokerage is bullish on them:

1. Minda Industries:

HDFC Securities recommends to buy the auto ancillaries firm for a target price of Rs. 890 i.e. an upside of 14 percent from the last closing price of Rs. 781.05. The scrip is recommended to be bought for a 3 months duration and the suggested stop loss is Rs. 723.

Technical observations:

Minda Industries is in an intermediate uptrend as it has been making higher tops and higher bottoms for the last several months.

After consolidating in a range between the 700-758 levels for the last several sessions, the stock has broken out of this range on Thursday on the back of above average volumes.

Technical indicators are giving positive signals as the stock is trading above the 20 day and 50 day SMA.

Daily momentum indicators like the 14-day RSI have bounced back from oversold levels and are in rising mode now. This augurs well for the uptrend to continue. "With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy", says the brokerage firm.

2. VIP Industries:

The luggage firm is given a buy for a target price of Rs. 650 that given the last closing price of Rs. 539.7 implies an upside of over 20%.

Technical observations:

Stock price has broken out on the daily chart with higher volumes.

Stock price is forming bullish higher top higher bottom formation on the daily and weekly chart.

Short term trend of the Stock is positive where it is trading above its 5 and 20 day EMA

RSI oscillator is placed above 60 and rising upwards, indicating strength in the current uptrend

Plus, DI is trading above -DI while ADX line is placed above 25, Indicating momentum in the current uptrend.

Considering the Technical evidences discussed above, we recommend buying VIP IND at CMP of 518.5 and average at 485 for the upside targets of 585 and 650, keeping a stop-loss at 460.

 

Disclaimer:

The above listed stocks to buy are picked from the brokerage report. Please note investing in stocks is subject to market risks and one needs to be cautious at this point of time as markets have gone-up sharply. Neither the author, nor Greynium Information technologies Pvt Ltd would be responsible for losses incurred based on a decision made from this article.