2 Stocks To Buy For Short Term For Potential Gains Up To 23%: HDFC Securities

During the week ended December 17, 2021, Nifty and Sensex cracked by a huge 3 percent each, snapping the last 2-weeks winning run. The continued FII selling , policy decisions by major global central banks mainly dampened sentiments.

Meanwhile, brokerage firm HDFC Securities based on technical analysis of the stock has come up with Positional calls that one can bet on for a short term of 7 days to 3 months. Note the stock ideas are based on the market movements by examining historical data, like price and volume.

So, here are the 2 positional calls by the brokerage for up to 22.75% upside

1. CCL Products: Buy for 22.75% Upside In 3 Months

HDFC Securities has given a 'Buy' call on this coffee manufacturer for a target price of Rs. 490. This from the current price level of Rs. 399 implies a potential upside of 22.75%. The horizon for the investment is 3 months while suggested stop loss is Rs. 370 per share.

Observations:

Descending Triangle Breakout is seen on the daily chart

Price breakout is accompanied with jump in volumes

Primary trend of the stock has been bullish with higher tops and higher bottoms

Stock is on the verge of breaking out from last 5 month's price consolidation

Daily RSI has registered crossover on signal line

Daily +DMI has crossed -DMI on the upside

Stock has been holding levels above its medium to long term moving averages

About CCL Products

CCL Products is a small cap company engaged in the manufacturing of Soluble Instant Spray Dried Coffee Powder, Spray Dried Agglomerated / Granulated Coffee, Freeze Dried Coffee, as well as Freeze Concentrated Liquid Coffee. The company is also in the business of instant coffee. Other products of the company include decaffeinated coffee, pure soluble coffee, flavoured coffee, certified coffees and Chicory-coffee mix

2. RHI Magnesita:

The brokerage firm is bullish on the stock of this cement-products and building materials sector stock. The target price set out for the scrip is Rs. 450 in 3 months time. This results into a potential upside of 21 percent from the last traded price of Rs. 371.30

Observations:

Stock price has broken from the downward sloping trendline on the daily chart.

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

Considering the Technical evidences discussed above, we recommend buying RHI Magnesita at CMP of 368.55 and average at 345 for the upside targets of 413 and 450, keeping a stop-loss at 330.

About RHI Magnesita

RHI Magnesita India is the leading supplier of high-grade refractory products, systems and solutions which are indispensable for industrial high-temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals and glass.

Disclaimer:

The stock has been picked from the brokerage report of HDFC Securities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the

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