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2 Small Cap Stocks To Buy For Gains Up To 17% In 3 Months: HDFC Securities


In the holiday truncated week, Indian benchmark indices gained massively on positive global cues as the markets had already factored in a rate hike by the US Federal Reserve Bank. Nifty clinched levels of 17287.


Meanwhile, HDFC Securities has come up with positional calls based of technical analysis of the stock by the brokerage's research experts. The given stock ideas are based on the market movements by examining historical data, like price and volume. The analysis of data and charts is carried out for trading signals and price patterns to identify investment opportunities.

So, here are the 2 stocks from different industries given as a 'Buy' for gains up to 17% in just 3 months of time.

Zensar Technologies

Zensar Technologies

The small cap company is a technology consulting and services company with 10,000 associates in 33 global locations. The company's focus is on conceptualizing, designing, engineering, marketing and managing digital products and experiences for high-growth companies. The company renders its services to industries such as Hi-tech, Manufacturing, Banking & Financial Services, Insurance, Consumer Services, Public Services and Healthcare.

HDFC Securities in its research report suggest to 'Buy' the stock of Zensar for a target of Rs. 440, which at the current price of Rs. 376.9 will mean gains of 16.74%. The time horizon for the investment is suggested to be 3 months with a stop loss maintained at Rs. 334.

Technical observation as per the brokerage

Technical observation as per the brokerage

Brokerage is of the view that after consolidating in the last 5 sessions, the stock has given a breakout. The stock has crossed above its 21 EMA which suggests of bullishness in the counter. "Major momentum oscillators are showing positive indications. RSI oscillator is placed above 50 and rising upwards, Indicating strength in the current uptrend", notes the brokerage. So in view of these observations, the brokerage recommends to buy Zensar at the current price and average at Rs. 350 for the upside target of Rs. 400 and Rs. 440.

Angel One

This is another small cap company previously known as Angel Broking. The company is amongst the leading independent full-service retail broking house.

Technical observation as per the brokerage

Technical observation as per the brokerage

The stock has corrected from its high scaled in October 2021 of Rs. 1689. Then in December, the stock found support at Rs. 990 and since then has strongly rebounded. During this week, the stock broke out of 1180-1380 range on the back of healthy volumes, indicating the stock is set to continue its intermediate uptrend.

Further, weekly momentum readings like the 14-week RSI are picking up, which is encouraging. The Relative
Strength Comparative indicator too is climbing higher, indicating the stock is likely to outperform the
Nifty index.

StockBuying rangeCurrent market priceTargetSL
Zensar TechnologiesRs. 350 for averagingRs. 376.95400/440334
Angel One1440-1472.3Rs 1472.31615/17601330

Both the above investment ideas are for the time horizon of up to 3 months. 

Disclaimer: The above stocks are taken from the brokerage report of HDFC Securities based on technical analysis. Please engage in your own analysis before taking on any such risky bet.

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