3 Stocks To Buy Showing Strong Momentum For Short Term Gains

Markets have rallied substantially in the last few weeks. Here are a few set of stocks recommended by Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher Pvt. Ltd.

BUY Greenply Industries

Current market price: 187, Target price: 220, Stop Loss: 175

The stock has been consolidating for quite some time around the 175 - 180 levels and has maintained a good support.  The stock is getting into momentum and with favourable indicators and RSI on the rise, we recommend a buy in this stock for an upside target of 220 keeping a stop loss of 175.

BUY RAILTEL

Current market price: 100, Target: 125, Stop Loss: 90 
The stock after making a higher bottom formation in the daily chart has picked up well and with the RSI on the rise and decent volume participation, we anticipate further move upwards to around 125 levels.  We recommend a buy in this stock keeping a stop loss of 90 for an upside target of 125.
 

BUY EASE MY TRIP

Current market price: 391, Target 450, Stop Loss 375 
The stock has been consolidating near the 350 levels and has made a positive bullish reversal  pattern in the daily chart with decent volume activity and the RSI indicator also has given a trend reversal to indicate positive bias. The trendline plotted connecting the recent bottoms show that the stock is in a rising trend and signifies strength. We recommend a buy in this stock for an upside target of 450 keeping a stop loss of 375. 

Data and numbers crucial

According to Dr. Joseph Thomas, Head of Research, Emkay Wealth Management, " The equity indexes recovered significantly due to aggressive buying that emerged against the sharp fall in the markets the previous day. The fact that growth in India would be still relatively higher, and that inflation may gradually moderate over time, have infused greater confidence in the minds of the market participants. Despite all this the trajectory of the markets would be decided by the data and numbers coming out locally as well as from the US."

About the author

Sunil Fernandes, the author of this article has spent 28-years covering business and finance, particularly stock markets. Sunil has worked with Deccan Herald, Hindustan Times, Dalal Street Investment Journal. He has also worked with leading English newspapers and investment magazines in the Middle East. He is currently Managing Editor for GoodReturns.in