1 Small Cap And 1 Mid Cap Stocks To Buy For Gains In The Short Term Of Up To 23%: HDFC Securities

Indian indices are up for another day after gaining 2000 points in the last two trading sessions on the Sensex. Nifty last towards the close of the session today (December 9,2021) has scaled to levels above 17,525. While Bank Nifty traded with a cut, broader markets have outperformed in today's session.

Notably, HDFC Securities based on technical analysis has come up with positional calls that can be lapped up for a short term of 7 days to 3 months. The stock ideas given out are typically based on the market movements by examining historical data, like price and volume. So, here below are two HDFC Securities' positional calls for short term gains.

Buy Finolex Cables: for a short term of 3 months for a target price of Rs. 725

HDFC Securities has given a 'Buy' call on the stock of Finolex Cables for a price target of Rs. 725 which around the current price level of Rs. 587.2 per share implies an upside of 23%.Stop loss suggested for the trade is Rs. 515. The recommended price for the buy on the scrip is Rs. 579.2. As per the site as of today, 2.35% target has been achieved. Note the buy is suggested for a 3-month term.

Finolex Cables is a small cap company into the manufacturing of electrical and telecommunication cables. Initially the company began with the manufacturing of PVC insulated electrical cables for the auto industry. Other than cables, the company also produces lighting goods, switchgear, water heaters, fan and other electrical accessories.

Buy Natco Pharma: for 10% Upside for a targte price of Rs. 952

For the mid-cap pharma company- Natco Pharma, HDFC Securities has given a 'Buy' for the short term of 3 months. The suggested buy is for a target price of Rs. 952 as against the last traded price of Rs. 865. This means a potential upside of 10 percent. Importantly buy on the scrip is recommended at a price of Rs. 849.9 while the SL to be maintained is Rs. 775.

Technical Observations on Natco Pharma

"The weekly time frame chart of this pharma stock (Natco Pharma Ltd) indicates a formation of an important bottom reversal pattern around Rs 800 levels. The sharp trended decline of the last few months seems to have completed and the stock price has formed a new higher bottom reversal.

A sustainable upmove above Rs. 880 levels could be considered as an upside breakout of a small range movement of the last few weeks and that is likely to open a decisive upside for the stock price ahead. Weekly 14 period RSI and weekly DMI/ADX signal chances of further strengthening of upside momentum in the near term", said the brokerage report.

Disclaimer:

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.

GoodReturns.in