For Thursday's trade, it's recommended to focus on HDFC AMC and Tata Communications, which have strong earnings growth prospects. HDFC AMC has a robust growth trajectory, driven by increasing asset management fees and steady inflows. Tata Communications, on the other hand, has a solid balance sheet and is poised to benefit from its strong presence in the Indian telecom sector. Investors can consider buying these stocks with a stop loss at 5-7% below the current levels and a target price of 10-15% above the current levels.
Until the benchmark indices firmly break the narrow range of the previous four days on either side, the consolidation is probably going to continue. Here are a few short-term trading suggestions.
Consolidation caused the market to close somewhat higher, and on December 11, the Nifty 50 ended a three-day losing streak. On the NSE, the breadth favored the bulls, with around 1,344 shares rising while 1,160 shares fell. Until the benchmark indices firmly break the narrow range of the previous four days on either side, the consolidation is probably going to continue. Here are a few short-term trading suggestions:
Vidnyan S Sawant, Head of Research at GEPL Capital
PCBL | CMP: Rs 487.7
After making a solid recovery from the 50% retracement level, PCBL has finished its intermediate correction. The price structure of the stock, which is marked by higher tops and higher bottoms, supports the idea that its positive trend will continue. Furthermore, the PCBL against Nifty ratio chart shows consistent outperformance, demonstrating the stock's relative strength and durability in the overall market. Its potential for additional upside is shown by the alignment of price action and relative performance.
Strategy: Buy
Target: Rs 570
Stop-Loss: Rs 448
HDFC Asset Management Company | CMP: Rs 4,543.85
Since April 2023, HDFC AMC has been steadily rising, making greater highs and lower lows. The stock saw a polarity shift in June 2024, marking a significant technical development. The previous resistance level from 2019 served as a strong support level at this time. This suggests that the bullish structure is getting stronger. Furthermore, the HDFC AMC against Nifty ratio chart demonstrates consistent outperformance, confirming the stock's relative strength in the overall market.
Plan: Purchase
Goal: Rs 5,232
Rs 4,185 is the stop-loss.
Anant Raj | CMP: Rs 727
With a noticeable increase in trade volumes in recent weeks, Anant Raj continues on its upward trajectory. Bullish momentum is highlighted by the stock's persistent above-the-26-week and 12-week EMAs (Exponential Moving Averages). The Money Flow Index recovers from the demand zone, indicating buyer interest, while the ratio chart (Anant Raj against Nifty) displays consistent upward movement, indicating significant relative strength.
Plan: Purchase
Goal: Rs 850
Rs 668 is the stop-loss.
Lemon Tree Hotels | CMP: Rs 142.81
Strong support at this crucial level is shown by Lemon Tree Hotels' successful mean reversion from the 100-week EMA, which highlights the company's strong pricing structure. The stock has resumed its upward trajectory after a 50% pullback, indicating fresh positive momentum. A bullish crossover on the RSI, which indicates increasing momentum and buyer desire, has validated this strength. A double bottom pattern is also seen in the ratio chart compared to the benchmark index, which supports the stock's relative strength and points to further market outperformance.
Plan: Purchase
Goal: Rs 163
Stop-Loss: Rs 130
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