3 Stocks To Buy Based On Technicals For Gains Up To 24% In 3 Months: HDFC Securities

SGX Nifty on escalating tensions between Ukraine and Russia has been down by over 1% and amid it HDFC Securities has given a 'Buy' on 3 positional stocks for 3 months.

EIH Ltd.:

 

The small cap hotel company is given a 'Buy' for a target of Rs. 157 in 3 months time.

Observations on the stock:

The stock price has been forming higher tops and higher bottoms on daily chart
Stock has reclaimed its level above its 50 days EMA
Hotel Sector has started outperforming after long time
Stock has broken out from last three session's price consolidation
Price breakout is accompanied by jump in volumes
Daily RSI has reached above its signal line
Daily MACD has been trading above its equilibrium line

EIH Ltd is into the business of operating and managing luxury hotels, restaurants, management contracts and travel and tours. The company forayed into the overseas market by opening a luxury resort -- The Oberoi Lombok -- in Indonesia and also started Motor Vessel Vrinda, a luxury crusier in Kerala

 

Mahindra Holidays:

The scrip has been given a 'Buy' for a target price of Rs. 260 per share.

TECHNICAL OBSERVATIONS

➢ Stock price has broken out from the downward sloping trendline on the daily chart with higher volumes.
➢ Stock price has broken out from the symmetrical triangle.
➢ RSI and MFI oscillator is placed above 60 and rising upwards, Indicating strength in the current uptrend
➢ Plus, DI is trading above -DI while ADX line has started sloping upwards, Indicating momentum in the
current uptrend.
➢ Considering the Technical evidences discussed above, we recommend buying Mahindra Holiday resort
(MHRIL) at CMP of 212.5 and average at 197 for the upside targets of 238 and 260, keeping a stop-loss
at 190

 

Balrampur Chini Mills: Buy for a target of Rs. 458

Stock has taken a support on change of polarity level and bounced. In the earlier instance also stock has bounced from the same level suggests stock will hold this level in coming sessions.

Trend of the stock has turned positive after taking support on its earlier bottom levels suggesting bullishness in the stock.

Major momentum oscillators are showing positive indications. RSI oscillator is placed above 40 and rising upwards, Indicating strength in the current uptrend.

Considering the Technical evidences discussed above, we recommend buying BALRAMPURCHINI at CMP of 402 and average at 380 for the upside targets of 425 and 458, keeping a stop-loss at 364.

 

Disclaimer:

Stocks discussed are as per the brokerage recommendation. Please note the markets are highly volatile, so act accordingly.

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