5 Stock Ideas As Sensex Seen To Scale To 53000 In Next 3-6 Months

Updated: Saturday, January 16, 2021, 17:44 [IST]

Indices saw an over 1 percent correction in the last day of trade to January 15, 2021 and as seen by experts the current rally mirrors the trend between 2001 and 2009. And now, the indices could scale up to 10 times in the upcoming 7-8 years time. So, now by saying this we mean at the Covid 19 outbreak, while Nifty and Sensex were at 7500 and 25700, respectively, they have the potential to scale to 53000 on the Sensex and on Nifty to 15000.

And now, given the current run-up and overall market momentum, for the Nifty and Sensex, the levels seen for the next 3-6 months are 15,500 and 53,000 levels, respectively.

So, as is seen there has been witnessed sectoral rotational and FII investment has been consistent from June 2020 and this shall sustain and amid we will see strengthening in the Indian currency. Some of the sectors which didn't do well in the last 10 years saw resilience such as the cement stocks.

Sensex' move from 1992 to 2021

Time period Sensex (lowest levels during the period) Highest Levels
1992-2000 (Gradual upmoves and highly volatile) 2000 6000
2001-2008 (consistent with almost 10% gains) 2000 20000
2008-2020 (Again a gradual and highly volatile upmove) 7700 42000

Now, here are some of the stock recommendations by brokerage house Kotak Securities:

1. Ambuja Cements: Buy Target price: Rs. 290-300; LTP-264.1

On a weekly and monthly basis, there was been forming higher top and higher bottom and the stock recently surpassed consolidation triangle formation at 225 and recovered back sharply. And a buy is recommended in tranches with a stop loss at 225 as the stock is likely to move above its previous highs of 291.5 per share. And the target price for the Ambuja Cement is Rs. 290- Rs. 300

The stock has provided a validation for the formation of a double bottom. And hence at the lower upside and highest levels, there is seen a jump to between Rs. 350- Rs. 550. And now as the metal index is just close to its all time high levels and may likely breach it. Buy at current levels and more on dips with a stop loss at Rs. 270.

3. Bharti Airtel- Buy Target price - Rs. 700

The stock on 100% FDI in subsidiaries has already broken multiyear resistance at 500. And now as it has scaled even past Rs. 600 in the current market euphoria, in the medium term, the stock price can go to Rs. 700.It is a buy at current and more on dips with a final stop loss at 530.

4. Balrampur Chini Mills- Buy

On the monthly chart, the stock show formation of rounding bottom and technically multiyear break out of the trading range helps the stock to move further higher. And as with other agricultural stock picks, the stock has already entered the long term breakout.
The strategy should be to buy at current levels and more on dips up to 170 with a final stop loss at 160. On the higher side 200 and 225 seems achievable.

5. TATA MOTORS (BUY):

On the monthly chart, the scrip is the pullback mode and now as it has crossed levels of Rs. 200 after dipping to lows of Rs. 63.5 per share, we see a vertical upmove. And after a substantial sales figure, there is seen levels of Rs. 330 levels even if we see 50% retracement from here, given the strong support to electric vehicle industry.

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