Indian market closed November month on a blockbuster note – thanks to more than Rs 65,000 crore of liquidity in the cash segment of the Indian equity market. The big surprise came from the small & midcaps space.
The month of November turned out to be one of the best for the Indian equity market as the benchmark indices posted their best monthly return since April 2020.
The S&P BSE Sensex rose 11.4 percent while the Nifty50 rallied 11.39 percent but the big action was seen in the broader market space. The S&P BSE Midcap index rose 13.49 percent while the S&P BSE Smallcap index was up 13.3 percent in November.
Experts are of the view that small & midcaps are likely to hog the limelight in the month of December while on the Nifty50, the index could make its headway towards 13,400-13,500 levels, suggest experts, but at the same time, aggressive bets should be avoided.
The level of 13,040 – 13,146 remains to be an immediate resistance zone, whereas on the lower side, 12900 – 12868 – 12790 can be seen as a cluster of supports.
“The overall trend has been strongly up, we still believe that one should avoid aggressive bets, rather focus on individual stocks with proper risk management. The ideal range for coming sessions would be 13150 – 12730 and till the time we do not breakout outside this range, we are likely to see trades on both sides, especially in indices,” Sameet Chavan, Chief Analyst Technical and Derivatives, Angel Broking Ltd told Moneycontrol.
“Above 13150, next levels to watch out for would be 13250 – 13400 and the move will not be as swift as it has been in the recent past. The real action continues in the broader markets as we can see stellar moves in a lot of mid and small counters,” he said.
The Nifty 50 index is trading at rising channel resistance and has become overbought in the short term, so there might be a limited upside.
Umesh Mehta, Head of Research, Samco Group is of the view that the immediate support and resistance are now placed at 12750 and 13150, and a break below the support may lead to a retest of 12400, and a break above 13150 might open targets up to 13400.
“As long as the Nifty50 does not break below the lower end of the rising channel there are very good chances for reaching 13500, and not immediately but after a few minor retracements,” he said.
Here is a list of top 10 stocks from different experts that could give 7-28% return in the next 3-4 weeks:
Expert: Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors Ltd.
Bank of India: Buy around: Rs 45| LTP: Rs 45.10| Target: Rs 58 | Stop Loss Rs 38| Upside 28%
After a prolonged downtrend, the stock is showing signs of life, as it gave a Cup and Handle pattern neckline line breakout which suggests confirmation of a reversal.
The daily RSI is bouncing back from the important support level along with positive crossover in stochastic and other momentum indicators suggesting a short-term pullback on the upside in the coming days.
Traders can initiate buying around Rs 45 levels for the target of Rs 58, and a stop loss can be placed below Rs 38 marks.
Union Bank of India: Buy around: Rs 28|LTP: Rs 28| Target: Rs 36| Stop Loss: Rs 24| Upside 28%
The stock is expected to give a double bottom breakout on the daily chart with decent volume. The bullish crossover in Stochastic and MACD are looking supportive for this upside breakout.
Positive crossover of 20 & 50 DMA’s indicating strength. The key support lies at 24 levels, and until this breaks down decisively, a long position can be held. Investors can take entry around 28 with a stop loss of 24 on a closing basis for the target of 36.
DLF Limited: Buy around: Rs 185| LTP: Rs 187| Target: Rs 212| Stop Loss: Rs 170| Upside 13%
Formation of a lower shadow near the foot of the weekly trend line indicating that declines are being bought and momentum could reverse.
After retesting of the strong support of 178, scrip has been forming higher highs and lows from last one week. Daily MACD showing positive crossover at lower reference line suggest pullback.
The sustainability of the above significant moving averages provides key support at lower levels. Once the stock gives a decisive close above 192, then it will be ready to move on the upside till 212 level; however, this view will invalidate, if the stock gives a close below 170 marks.
Experts: Gaurav Garg, Head of Research at CapitalVia Global Research Limited
L&T Technology Services: Buy above Rs 1751|LTP: Rs 1724| Target: Rs 1855| Stop Loss: Rs 1670| Upside 7%
This stock has given a trend line breakout in its daily charts and taking the support of the trend line. It has resistance placed at 1750. Also, it is trading above its important moving averages.
Any breakout above the level of 1750 would add further upward momentum to the stock. We recommend initiating a buy position above Rs.1751 with a stop loss of Rs.1670 and a target of Rs.1855.
Dr Reddy’s Laboratories: Buy above Rs 5020| LTP: Rs 4829| Target: Rs 5320| Stop Loss: 4770| Upside 10%
This stock has given a trend line breakout in its daily charts. It is in a consolidation phase. Also, it is trading above its important moving averages.
Any breakout above the level of 5020 would add further upward momentum to the stock. We recommend initiating a buy position above Rs.5020 with a stop loss of Rs.4770 and a target of Rs.5320.
HCL Technologies: Buy above Rs 858| LTP: Rs 822| Target: Rs 903| Stop Loss: Rs 815| Upside 10%
This stock has been in a consolidation phase for quite a few days. Any breakout about the level of 858 would add further momentum to the stock. We recommend initiating a buy position above Rs. 858 with a stop loss of Rs.815 and a target of Rs. 903.
Expert: Sameet Chavan, Chief Analyst Technical and Derivatives, Angel Broking Ltd
ONGC: Buy| LTP: Rs 78.50| Target: Rs 87| Stop Loss: Rs 73.70| Upside 10%
This one of the ‘Maharatna’ companies in India has failed to live up to the expectations of investors over the past 6 years now. After such a long stint of underperformance, we are now observing some early signs of revival.
In the month of November, the stock prices clocked handsome gains of over 20 percent, and importantly it is backed by considerably higher volumes, which is a sign of strong buying interest in the stock.
In this process, prices convincingly surpassed ‘200-day SMA’ for the first time since July 2019 and are spending some time above it.
All these observations indicate a possibility of a decent rally unfolding in days to come. Hence, we recommend going long for a target of Rs.87 in the coming weeks. The stop loss can be placed at Rs.73.70.
HDFC AMC: Buy| LTP: Rs 2534| Target: Rs 2720| Stop Loss: Rs 2478| Upside 7%
This marquee name had given a stellar move last year but this was followed by a sharp correction early this year in the massive broader market sell-off.
Surprisingly, this stock did not move at all when the entire market just took off after March lows and so many counters even surpassed their previous all-time highs in the process.
Now, we can see some encouraging signs on smaller degree charts as the daily time frame depicts a breakout from the bullish ‘Cup and Handle’ pattern.
Stock prices managed to traverse the ‘200-day SMA’ as well and looking at the overall price-volume activity in last few weeks, we expect the stock to do well.
Traders are advised to buy for a target of Rs.2720 in the coming days. The stop loss can be placed at Rs.2478.
Brokerage Firm: SMC Global Securities Ltd
Gujarat State Fertilizers & Chemicals Limited (GSFC): Buy| LTP: Rs 70.55| Target: Rs 82| Stop Loss: Rs 63| Upside 16%
The stock made a 52-week low at Rs 29.80 on 24th March 2020 and a 52-week high of Rs. 97.80 on 28th January, 2020. The 200-days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 63.02.
After registering a yearly low of 30 levels, the stock recovered sharply and traded in the rising channel on the weekly charts. Then, stock consolidated in a narrow range of 59-68 levels for few weeks and formed a “Bullish Pennant” pattern on weekly charts which is bullish in nature.
Last week, the stock has given the pattern breakout along with volumes, ended over 5% gains so further upside is expected from current levels.
Therefore, one can buy in the range of 68-69 levels for the upside target of 80-82 levels with a stop loss below 63.
GATI Limited (GATI): Buy| LTP: Rs 89| Target: Rs 102| Stop Loss: Rs 82| Upside 14%
The stock made a 52-week low of Rs 35.25 on 12th May 2020 and a 52-week high of Rs. 98.35 on 17th November 2020.
The 200-Days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 56.35.
The short-term, medium-term, and long-term bias are positive for the stock as it is comfortably trading in higher highs and higher lows on charts.
Apart from this, it is forming a “Bull Flag” pattern on daily charts and has closed on verge of a breakout of the pattern but its consolidation along with volumes indicates there is a strong spurt in coming days.
Therefore, one can buy in the range of 87-88 levels for the upside target of 100-102 levels with a stop loss below 82.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.