Buy 3 Large Cap & 2 Mid Cap Diwali Special Stocks - Technical Picks By Kotak Securities

Kotak Securities is bullish on 5 top stocks namely HCL Technologies Limited, IRCTC Limited, ITC Limited, Max Healthcare Institute Limited, and Mahindra & Mahindra Finance Services Limited in its Diwali Special-technical Picks. The brokerage sees a potential upside of up to 48% from the current level. Here are the details of the stocks with the given target price and the potential upside:

Current Market Price (CMP), Target Price & Potential Upside

Stocks	CMP (In Rs)	Target Price (in Rs)	Potential Gains (in %)
HCL Tech	995.65	1250	26
IRCTC	742.8	950	28
ITC	346.35	400	16
Max Health	405.5	600	48
M&M Finance	215.45	269	25

1. HCL Technologies Limited

HCL Technologies is a large-cap IT sector company having a market cap of Rs 2,73,863 crore. The brokerage has given a buy call for a target price of Rs 1,250 per share to get 25% returns. The stock's current market price is Rs 995.65 per share on NSE.

It has surged 4.59% in the past 1 week, whereas, in the past 1 month, the stock has given 10.9% positive return. Over the past 1 year, it has fallen 19,19%, giving a negative return. However, it has given 81.77% and 115.91% of positive returns in the past 3 and 5 years, respectively.

According to the brokerage, After a long medium-term correction, the stock finally found support near 880 and started an upside move. After promising reversal formation, the stock has formed a strong double-bottom formation on the weekly and monthly charts. Modest volume activity and a reversal formation near important support areas indicate further upside from current levels. "Based on the broad structure of the stock, we should consider adding it in a staggered manner. Place the last stop loss on the downside at 880 with the potential to go up to 1250. The strategy should be to buy 50 per cent on 1000 and the remaining 50 per cent on 920. Stop loss should be placed at 880," the brokerage has said.

 

2. IRCTC Limited

Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a "Mini Ratna (Category-I)" Central Public Sector Enterprise under the Ministry of Railways, Government of India. It is a large-cap monopoly stock with a market capitalisation of Rs 59.376 crore.

The brokerage places a buy call on the stock with a target price of Rs 950 per share. Considering this, the stock can give 28% returns. The stock's current market price stood at Rs 742.80 per share on NSE.

In October 2019, the stock got listed on the stock exchange. Since its listing, it has given a multibagger return of 410.34% on investments. It surged 2.84% in the past 1 week, whereas in the past 1 month 7.34%, respectively. However, over the past 1 year, it has given 31.91% of negative return. In the past 3 years, it has given a multibagger return of 376.67%.

According to the brokerage, The stock was at 1279 in the month of October 2021, from there the stock corrected to the level of 557, which was 61.80% of the previous up move. Technically, it is on the verge of forming a Cup with Handle formation, which is a Bullish Consolidation Formation to it. Based on this, in the long run, the stock may move back towards the 1280 level, however in the short to medium term the stock would move towards 950 with major resistance at 850. Buy 50% at current levels and the rest should be bought at 690. Stop loss at 650 for the same position.

4. Max Healthcare Institute Limited

Max Healthcare Institute Limited is one of India's largest healthcare organizations. It operates 17 healthcare facilities (3400+ beds) across the NCR Delhi, Haryana, Punjab, Uttarakhand and Maharashtra. Almost 85% of our bed capacity is in Metro/Tier 1 cities. It is a mid-cap hospital & allied services sector company with a market cap of Rs 39,318.67 crore.

The brokerage has given a buy call to the stock of the company for potential gains of up to 48% with a target price of Rs 600 per share. The current market price of the stock is Rs 405.50 per share on NSE.

It was listed on the stock exchange in August 2020, and since then the stock has given a multibagger return of 262.86%. However, in the past 1 week, it fell 3.61% and in the past 1 month around 4.53%, respectively. Over a year, the stock has given 20.76% of positive return.

According to the brokerage, Since September 2021, the stock is in rectangle consolidation between the trading range of 310 and 450. If we consider the volume indicator, then it is supporting the broader price pattern. On reversal from the lower levels, it is crossing the average traded volume line. The sectoral performance is stronger than other sectors, which will help the stock cross the upside barrier, which is at 450. If the 450 level is crossed, technically the stock can go up to the 600 level. Resistance would be at 500 and 560. Buy 50% at current levels and the rest should be bought at 400. For the same place a stop loss at 370.

5. Mahindra & Mahindra Finance Services Limited

Mahindra & Mahindra Finance is a mid-cap Non-Banking Finance Company (NBFC) having a market cap of Rs 26,619.49 crore. The company is engaged in providing asset finance through its branch network in the country.

Kotak Securities in its Diwali Special Picks, the stock has been given a buy call with a target price of Rs 269 per share. Given the target price, the brokerage sees a potential upside of 25% from its current level. The stock's current market price stood at Rs 215.45 per share on NSE.

The stock has surged 4.06% in the past 1 week, giving a positive return. However, in the past 1 week, the stock has fallen 3.56%. It has given 13.31% positive return in the past 1 year. It has given negative returns on long-term investments of 5 years. In 3 years the stock fell 32.51% and in the past 5 years, the stock fell 49.02%, respectively.

According to the brokerage, in recent days, the stock has made a new 52-week high of 235.10 but due to profit-booking at higher levels, it corrected sharply. However, the mid-term chart structure of the stock is still on the positive side. After a quick short-term correction, the stock took support near the 200-day SMA (Simple Moving Average) and bounced back sharply. Technically, an upward-sloping trend line formation, 200-day SMA (Simple Moving Average) support level and a strong reversal formation structure suggest that the uptrend wave is likely to continue in the medium term. The strategy should be to buy 50 per cent at current levels and the remaining 50 per cent at 190. Stop loss should be placed at 175. On the higher side, it would move to re-test the all-time high, which is at 269.

Disclaimer

The stocks have been picked from the brokerage report of Kotak Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.