2 Stock Buy Ideas For 3 Months For Good Gains: HDFC Securities

Updated: Wednesday, April 6, 2022, 3:51 [IST]

Markets in trade today after starting off on a positive note are performing weak with Nifty down by some 30 points. Broader markets and Bank Nifty behaved differently with the former posting gains to the tune of over 1 percent.

Meanwhile, brokerage HDFC Securities has come up with its short term picks with a 'Buy' rating:

1. Buy Mangalore Chemical: For a target price of Rs.112

The company has given out Mangalore Chemical as its technical positional pick. The buy or the given upside is seen in a time horizon of 3 months. The stop loss given for the trade is Rs. 81.

Mangalore Chemical is a Karnataka based fertiliser manufacturing concern with its product range comprising Urea, Di-Ammonium Phosphate, Muriate of Potash, Granulated Fertilizers, Micronutrients, Soil Conditioners and Specialty Fertilizers, touches and enriches the lives of farmers across Southern India. Mangalore Chemicals and Fertilizers Ltd is a part of The UB Group, a large and diversified business house.

Technical observation:
Stock has broken out from descending triangle on the weekly chart
Price breakout is accompanied by jump in volumes
Stock has surpassed the crucial resistance of previous swing high 86.60
Weekly MACD has been rising and has reached above equilibrium line
Weekly RSI has been rising with higher tops and higher bottoms
Chemical and fertilizer sector have been outperforming last couple of months
Stock is placed above all important moving averages, indicating bullish trend on all time frames

2. Buy HSIL for a target price of Rs.380 for 3 months

The company is a Buy and is a home decorative company into building material products. The company has dominance in container glass.

Brokerage house has recommended a 'buy' on the stock for a target price of Rs. 380 that at the current price of Rs. 310 would offer an upside of 22.58%.

This is the brokerage's e-Margin positional pick
Technical observations:

➢ Stock price is on the verge of breaking out from symmetrical triangle.
➢ Primary trend of the stock is positive as it is trading above its 50, 100 and 200 day EMA.
➢ RSI and MFI oscillator is placed above 50 and rising upwards, Indicating strength in the current uptrend.
➢ Plus DI is trading above Minus DI while ADX line is placed above 20, Indicating momentum in the current
uptrend
➢ Considering the Technical evidences discussed above, we recommend buying HSIL at CMP of 309.45 and
average at 290 for the upside targets of 349 and 380, keeping a stop-loss at 280.