2 Heavy Electrical Equipment Stocks To Buy For Good Gains In Short Term

As the Federal Reserve showed its intent to be in the aggressive path for fighting inflation, equities world over gained and likewise, Nifty in a week's time has gained by a great 2.97%. So, amid such a momentum, HDFC Securities has come up with its positional picks based on technical analysis. These picks can be held for a short term of just up to 3 months.

Here below are the 2 picks from the heavy equipment category that investors can bet on as suggested by the brokerage:

Hitachi Energy

This is a small cap scrip. The company formerly called ABB Power Products and Systems India Limited, is a power technology company. The Company's power grids business consists of grid automation, grid integration, high voltage products and transformer.

For the scrip, HDFC Securities has given a target of Rs. 3700 and considering the scrip's LTP of Rs. 3274.45, this amounts to gains of 13%.

The rationale or the observation on the stock as given by the brokerage are as following:

Remember here as it is a short term bet, the stop loss suggested is 2900

Primary trend of Stock is positive as it is trading above its 100 and 200 day moving averages.

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

Short term trend of the stock turned positive as it is trading above its 5 and 20 day EMA.

Momentum Oscillators like RSI and MFI are in rising mode and placed above 60, indicating strength in the
current uptrend

Considering the Technical evidences discussed above, we recommend buying POWERINDIA at CMP of 3278 and average at 3020 for the upside target of 3700, keeping a stop-loss at 2900

Schneider Electric

This is again a small scrip. The company is engaged in the business relating to product and systems for electricity distribution. The Company's products include transformers, equipment, components, ring main units, auto-reclosures and automation.

For the S&P BSE small cap stock, the brokerage has given out a target of Rs. 125 to be realised in 1-3 months and the suggested stop loss is Rs. 89 per share.

Observations on the stock

This stock the brokerage is recommended as its MTF or marginal trading funding pick

The stock has found support near its previous bottoms and is climbing from there by making higher top higher bottom formation.

The stock has also breached above downward sloping trend line (highlighted in blue), indicating that the uptrend might extend towards the intermediate high.

The stock is trading above 21 EMA and all major momentum oscillators are showing positive indications.

Based on the technical data shown above, we advise purchasing SCHNEIDER at the CMP of 103.10 and averaging at 94 for upside targets of 112 and 125, with
a stop-loss of 89.