Indian indices after previous day's correction are seen trading higher with Nifty holding above 17,100 points. Broader markets performed still better with Nifty Midcap 100 trading up by 0.5%, now as the overall market sentiment looks positive, here are 3 HDFC Securities stock recommendations for quick gains in the short term:
The B2B company as per HDFC Securities is in intermediate uptrend as it has been making higher tops and higher bottoms for the last several months. Over the last several weeks, the stock has been consolidating in a range between the 6650-7844 levels. On Monday, the stock has broken out of this range on the back of above average volumes.
Technical indicators positive
Technical indicators are giving positive signals as the stock is trading above the 20 and 50 day SMA. Weekly momentum indicators like the 14-week RSI have bounced back from oversold levels and are in rising mode now. This augurs well for the uptrend to continue. With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy. The stock has suggested a target price of Rs. 9715, against its current price of Rs. 7870, implying an upside of 23 percent.
The brokerage is bullish on the world's leading producer of calcined petroleum coke, coal tar pitch as well as other high quality advanced materials. HDFC Securities has set out a target price of Rs. 270, implying gains of 20.53% from the current price of Rs. 224. The investment horizon or time horizon is a short term of 3 months.
As per the brokerage firm, "the stock has also breached above downward sloping trend line We observe a formation of bullish pattern on daily and weekly time frame. Momentum oscillators like RSI and MACD are giving bullish indication suggesting bullish movement for the stock for few more weeks. The overall chart pattern of RAIN indicates long trading opportunity." "One may look to create positional long as per the levels mentioned above", adds the brokerage report. HDFC Securities for the ‘Buy' of Rain Industries recommends at stop loss of Rs. 193.
The company has suggested a target price of Rs. 1580, implying gains of 18% from the current price level of Rs.1340 per share.
Technical indicators paint a positive outlook for the scrip.
The stock after being in a range between the 1216-1320 levels for the last few sessions, the stock has broken out of this range on Monday on the back of healthy volumes. "Technical indicators are giving positive signals as the stock is trading above the 20 day SMA. Daily momentum indicators like the 14-day RSI have bounced back from oversold levels and are in rising mode now. This augurs well for the uptrend to continue. With the intermediate technical setup too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy", says the brokerage report.
Stock markets investments are subject to risk. Investors should not construe the above report for investment advice. Please do your own study and analysis before making equity or equity related bets.