2 Stock Buy Recommendations By HDFC Securities For Gains In 3-4 Weeks

In the previous day's trade (June 9, 2021), Indian stock market saw sharp profit booking after scaling a fresh record high of 15800.45 level on the Nifty. After several trading sessions of range bound movement on the upside a long bear candle was seen on the daily chart. This formation suggests of the likely occurrence of profit booking from the new highs in the market.

2 Stock Buy Recommendations By HDFC Securities For Gains In 3-4 Weeks

Currently, the positive trend of higher highs and higher lows comes into focus and the existing weakness could indicate creation of new higher bottom. Furthermore, the long bear candle pattern at the new highs unlocks prospects of reversal pattern. Support levels that needs to be watched out for is 15,560 and a move below this level is likely to drag Nifty to 15,400 levels.

Here are 2 stock picks for short term gains by HDFC Securities

1. NTPC: Buy- TP- Rs. 130

For past few months, the stock price of NTPC is in constant uptrend as indicated by the positive chart pattern of higher tops and bottoms. This week, the broad-range movement has been broken on the upside and the stock has gained, while being positioned to form a new higher top. Volume in the counter has started to inch higher with breakout on the upside and weekly RSI also gained from close to 60 levels. This is a positive sign.

Buying in the scrip of NTPC is recommended at CMP of Rs.118 and one can add more on dips at a price to Rs. 114, for a upside target of Rs. 130 in the next 3-4 weeks. Stop loss of Rs. 111 is suggested.

2. Buy Mahindra Logistics Ltd: Buy- TP- Rs. 648

As per the weekly chart, the stock price of Mahindra Logistics has been moving in a consolidation pattern and is currently attempting to show upside breakout of the range of Rs. 280-285 recently. Therefore, this pattern could be deemed as an upside breakout of triangle type pattern. A sustainable upmove from here on could trigger a sharp upside for the stock of the logistics entity.

Weekly chart indicates bullish chart pattern such as higher highs and higher lows and the post consolidation upside breakout has been good in the earlier period.

Buying in the stock is recommended at a CMP of Rs. 588.15, further one can add more on dips to Rs. 565, for an upside target of Rs. 648 in the next 3-4 weeks. Stop loss of Rs. 550 is suggested.

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