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1 Small Cap And 1 Mid Cap Stock To Buy For 3 Months Based On Technical Analysis

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Indian indices have gathered steam in today's session, with headline indices making solid moves to the tune of 2.5%. Broader markets still outperformed, so here are 2 'Buy' calls for short term of 3 months based on technical analysis as suggested by HDFC Securities.

 

Polycab India

Polycab India

On the mid-cap cables entity, HDFC Securities has given a 'Buy' for a target price of Rs. 3040. The 'buy' has been suggested for 3 months time, maintaining a stop loss of Rs. 2400. Given the current price of Rs. 2603.1, the stock can offer potential upside of 16.78%.

HDFC Securities' Technical observations on Polycab India
 

HDFC Securities' Technical observations on Polycab India

Polycab has corrected from a high of 2820 touched in April 2022.

The stock recently found support at the 2365 levels and has strongly bounced back from these levels in
the last few weeks.

Last Friday, the stock broke out of the 2365-2550 range on the back of healthy volumes, indicating the stock is set to continue its intermediate uptrend.

Daily momentum readings like the 14-day RSI are in rising mode, which is encouraging. The Relative Strength Comparative indicator too is climbing higher, indicating the stock is likely to outperform the
Nifty index.

With the intermediate technical setup looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy.

 Jamna Auto

Jamna Auto

This is a small cap auto ancillaries firm on which HDFC Securities is bullish and has given a 'Buy' rating for a target price of Rs. 124. At the current price, it implies potential gains of over 11 percent. The buy recommended for 3 months should be executed keeping a stop loss of Rs. 100.

Note HDFC Securities has chosen Jamna Auto as its Emargin positional pick

HDFC Securities' Technical observations on Jamna Auto


Jamna Auto has recently corrected from a high of 125 tested in January 2022 and found support at the
94 levels in February 2022.

The stock has since then bounced back and has reversed its recent short term downtrend in the
process. A new uptrend was confirmed when the stock took out the previous swing high of 105 on the
back of healthy volumes

Technical indicators are giving positive signals as the stock is now trading above the 50 day SMA. Daily
momentum indicators like the 14-day RSI have bounced back from oversold levels and are in rising
mode now.

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. Our entry levels with stop loss and
targets have been mentioned above .

Disclaimer

Disclaimer

The above stocks are picked from HDFC Securities report. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies and the author are not liable for any losses caused as a result of decisions based on the article.

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