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Hot Stocks | 'Bet on Dabur, Nippon Life & Godrej Agrovet for short-term gains'

On the technical front, the secondary oscillators suggest further consolidation for Nifty within a range of 12,050 to 12,250, while Bank Nifty is likely to trade in the range of 31,000 to 31,500.

February 12, 2020 / 08:28 AM IST
 
 
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Shitij Gandhi

After a stunner rally seen in the week gone by, the Indian market witnessed see-saw moves and was seen trading in a broader range of 12,000 to 12,200 in the last three trading sessions, tracking mixed cues from the domestic and global front.

On the derivative front, put writing was observed at 12,100 strike along with marginal call writing, while 12,200 strike holds maximum open interest build-up in calls.

On the technical front, the secondary oscillators suggest further consolidation for Nifty within a range of 12,050 to 12,250, while Bank Nifty is likely to trade in the range of 31,000 to 31,500.

However, bias is likely to remain positive and any dip into prices should be used to create fresh longs.

Here are three buy calls for the next 3-4 weeks:

Dabur India | Buy | LTP: Rs 508.75 | Target price: Rs 546 | Stop loss: Rs 480 | Upside: 7.32%

In the recent past, the stock has given a sharp breakout above multi-week highs and risen sharply from Rs 480 to Rs 515 in a short span of time.

However, since then, prices have been consolidating in a range and holding well-above its short and long-term moving averages on the daily interval, with a broader trend maintaining its uptrend while making higher highs and higher bottom patterns.

At the current juncture, once again the positive divergences on oscillators suggest for further upside into the prices after a consolidation phase.

Traders can accumulate the stock in the range of Rs 505-510.

Nippon Life India Asset Management | Buy | LTP: Rs 403.65 | Target price: Rs 441 | Stop loss: Rs 360 | Upside: 9.25%

The stock has been consistently maintaining its bull run and seen trading in a rising channel with the formation of a higher high and higher bottom pattern on broader charts.

However, for almost three months, the stock has been consolidating in a broader range of Rs 320 to Rs 390 with prices holding well above long-term moving averages on the daily interval.

This week, the stock has given a breakout after a prolonged consolidation which could trigger follow up buying into the prices moving forward.

Traders can accumulate the stock in the range of Rs 390-400.

Godrej Agrovet | Buy | LTP: Rs 570 | Target price: Rs 622 | Stop loss: Rs 525 | Upside: 9.12%

In the last month, the stock gave a sharp breakout above the 200-days exponential moving average on a weekly interval which was placed at Rs 550 and thereon tested Rs 598-level in a short span of time.

However, since then the consolidation into the prices kept the stock in the range of Rs 550-575 with prices holding above short and long-term moving averages on daily intervals.

At the current juncture, the stock has formed a rectangle pattern on the weekly interval and once again has given a fresh breakout above the same.

Traders can accumulate the stock in the range of Rs 565-570.

(The author is Senior Technical Analyst at SMC Global Securities)

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Moneycontrol News
first published: Feb 12, 2020 08:28 am

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