2 Stock Buy Ideas For Gains In 3-5 Weeks By HDFC Securities

After indices have hit a record high and major moves such as change of guard in the US are behind us, there is expected some consolidation in the near term even as the overall trend seems positive. On Friday, on global sell-off and fresh concerns over corona leading to fresh restrictions in countries like China, Indian indices too saw profit booking but the long term trend line resistances as per monthly chart) could come into play. This is even as one may expect continuance of volatility ahead of budget announcement.

2 Stock Buy Ideas For Gains In 3-5 Weeks By HDFC Securities

Here are two stock picks by HDFC Securities for gains in 3-5 weeks:

1. SBI Cards and Payment Services Ltd - Buy-Target Price - Rs. 1100 In 3-5 Weeks

As the stock saw sharp upside in Wednesday's session, the chart now signals higher highs and lows, which indicate strength of an uptrend in the stock price. The volume has seen an expansion during recent upside breakout and daily 14 period RSI is placed around 70 levels. And hence pick up of RSI from here on suggest strengthening of upside momentum.

Buying can be initiated in SBI Cards at CMP (997.15), add more on dips down to Rs 960, wait for the upside target of Rs 1100 in the next 3-5 weeks. And you can place a stoploss of Rs 935. The last traded price for the counter have been Rs. 1032, an upmove of 5% even as the overall market saw sluggish momentum.

2. Godrej Consumer - Buy- Target price: Rs. 880 In 3-5 Weeks

While the stock has underperformed in line with the indices, there was traction in the stock in the week gone by and there could be valid upside breakout of a larger triangle pattern and one may expect further sustainable upside in the near term. Also the weekly momentum oscillator like RSI/Stochastic give signals to positive momentum.
Buying can be initiated in Godrej Consumer at CMP (799), add more on dips down to Rs 765, wait for the upside target of Rs 880 in the next 3-5 weeks. Place a stoploss of Rs 745. Last traded price for the counter has been Rs. 790 per share on the NSE.

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