The buzzing stocks we all should monitor during Diwali
Oct 19, 2022
New Delhi [India], October 19 : Nothing lasts forever and that means not even tough times. We all have seen our stocks portfolio decline or went on a seesaw movement during the past few months. However, Diwali, synonymous with wealth, is just around the corner. Isn't it a good beginning to invest money in the right place and buy the dips?
ANI went through the recommendations of stock brokerages and came up with a few stocks, or should we say 'gems' to help or guide your portfolio shine?
Some of these buzzing or recommended stocks are ITC, Arvind Fashions, Federal Bank, Godrej Properties, Bank of Baroda, Kotak Mahindra Bank, UltraCement, Balkrishna Industries and Mahindra & Mahindra.
The overall bullish trend of ITC remains intact and with a weekly breakout above 320 level indicated, brokerage firm Prabhudas Lilladher anticipates this stock to continue its upward move further till 450 levels. With the chart looking attractive, the brokerage recommends a buy in this stock for an upside target of 425-450 keeping a stop loss of 298.
Arvind Fashions rallied more than 150% in just three months and after correcting 61.8 per cent of the entire move and has been consolidating. Anand Rathi brokerage said that at this juncture; it is again on the verge of fresh breakout and that indicates a continuation of the prior uptrend.
The bank's earnings came out with flying colours with over 52 per cent jump in net profit for the second quarter. Recently, the bank has confirmed a life-time breakout above the 121 mark on a monthly closing basis. Anand Rathi brokerage said this breakout has occurred after a consolidation of around five years and the bank has been an outperformer among its peers.
Anand Rathi said that it is witnessing a double bottom formation at the demand zone. Since the past few months; the volumes have been declining and that indicates that the selling is getting exhausted and that gives excellent risk rewards to go long. Investors /traders can buy the stock within a time frame of around 1 year.
LKP Securities said the second largest public sector bank in terms of business has a strong consumer franchise post its merger with Dena Bank and Vijaya Bank, and has been posting consistent profits since many quarters.
The stock has witnessed a decent erosion in recent times and has taken support near 1830 zone and indicated a pullback to improve the bias and anticipate for a decent rise. The brokerage -- Prabhudas Lilladher -- anticipates it to again regain strength and carry on the momentum further upward again to witness new targets. With the relative strength index (RSI) indicator also flattening out after the gradual slide witnessed recently, is also well placed and gradually picking up to gain strength and with immense upside potential visible, the chart looks attractive. The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and change of price movements.
The RSI indicator has been getting stronger and is well placed with improved bias and rising trend and Prabhudas Lilladher anticipates an upward move in the future. With the chart looking good, the brokerage suggested to buy and accumulate this stock for an upside positional target of 2240-2300 levels having the support near the 1680 level.
Prabhudas Lilladher said M&M is their preferred picks in the autos space, given visible benefits from management aggression growth revival in an automotive segment from robust product launches, strong order book and semiconductor supply issues easing out 200bps market share gain in tractor segment plus strong leadership in high growth farm implements segment. The brokerage believes the stock will trade at a premium to its historic P/E, given its revamped sports utility vehicle (SUV) business with success in premium UV segment and improved capital allocation strategy.
