2 Small Cap, 1 Large Cap Stocks To Buy For Up To 26% Gains: HDFC Securities

Indices are at their day's high as of writing this copy led by IT, Realty and media packs. Broader markets in fact have been outperforming and Nifty Bank too is resilient in trade today.

Meanwhile, HDFC Securities has come up with its positional picks for gains of 26 percent in the short term of 3 months.

Vidhi Specialty Food:

The brokerage has given a target of Rs. 480 as against the last traded price of Rs. 381.40. This is approximately 26 percent gains from the last traded price. The stop loss recommended for the trade

Technical observation:

Stock price has broken from the symmetric triangle on the daily chart.

Stock price has broken out on the daily chart where it is trading at two month high

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

Oscillators like RSI and MFI is placed above 60 and rising upwards, Indicating strength in the current uptrend

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

Considering the Technical evidences discussed above, we recommend buying VIDHI Speciality at CMP of 387.75 and average at 363 for the upside targets of 430 and 480, keeping a stop-loss at 350

About Vidhi Specailty Foods:

This is again a small cap scrip and is a leading player in the superior synthetic and natural food grade colours. The company's other product line includes colour solutions that find application across segments such as of Food & Beverage, Confectionary, Pharmaceuticals, Feeds, Cosmetics, Inkjet Inks and Salt Free Colour. The company's colours are being distributed and consumed in over 80 countries across 6 continents.

The company's stock last traded at a price of Rs. 380.75.

Gland Pharma:

This pharma company which has debuted in 2020 end was not finding favour initially due to China connection but after a bumper listing is now on the list of positional stock picks of HDFC Securities as a 'Buy' for a target price of Rs. 4390. The buy is suggested for 3 months time frame with a stop loss at Rs. 3500.

The price at the recommendation of the scrip has been at Rs. 3878 implying target gain of over 13 percent.

Venkys India:

This is another bullish pick of the brokerage for a price target of Rs. 2875. The stop loss for the recommended investment is Rs. 2370, while the 'buy' is again for another 3 months time.

Technical observations:

The down trend of the last few months seems to have completed in this stock price (Venky's
India Ltd), as it shifted into a range bound action in the last few weeks.

The stock price showed a false downside breakout of the support at Rs 2400 levels recently. Currently moving in a larger triangle type formation. As per its formation of larger triangle pattern, the stock price is expected to move up to the upper area of a triangle pattern at Rs 2950 levels, before showing any upside breakout in
the near term.

Weekly 14 period ADX/DMI indicates a squeeze type movement and this pattern signal a possibility of sharp movement in the stock price ahead. Preferably on the upside. The overall chart pattern of VENKYS indicate long trading opportunity. One may look to create positional long as per the levels mentioned above.

 

About Venkys:

This small cap company is an integrated poultry group in Asia. The company has diversified its activities in poultry sector that includes production of SPF eggs chicken and eggs processing broiler and layer breeding animal health products Poultry feed & equipment soya bean extract and many more.

Disclaimer:

Investing in stocks is risky. The recommendations are taken from the stock report of HDFC Securities. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article. Investors should exercise caution before investing.

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