3 momentum picks to buy for September
Despite being a midcap , this company has high aspirations in implementing 5G network in India
August 26, 2020 / 04:38 PM IST
ONGC – Target: Rs 94, Stop-loss: Rs 75
The chart of ONGC has shown excellent double bottom pattern on August 3 and from there it is making higher tops and higher lows. Critical moving averages like 50 Day and 20 Day currently at 79 are providing strong support to the price. Fundamentally, ONGC has reduced its debt to Rs 13,900 crore from Rs 21,500 crore earlier, which has been taken very positively by market. The RSI is at 54 which is clearly in buy zone and MACD histograms are reducing in size in the sell zone, indicating momentum building up in the counter. On a swing trading basis, this stock can give good break out in September.Dilip Buildcon – Target: Rs 500, Stop-loss Rs 370
After Prime Minister’s Independence Day speech where it was declared that in coming years the government will spend close to Rs 1 lakh crore in building infrastructure by commissioning new roads, bridges, dams and tunnels. Taking cue from this, all infrastructure stocks are riding the momentum, but this will specifically benefit Dilip Buildcon. This EPC company earns 90 percent revenue from government projects and thus is well placed to grab a sizeable chunk of this government spending. The company works on a very unique model where they owns all their equipment for better control and output which is not practised by any other EPC company among its peers. On the technical front, chart has broken its 200 EMA from below after almost one year with 50 percent more volume than usual. Moreover, the chart has shown a very beautiful Golden Crossover in its near term moving averages like 20 Day EMA. Its 50 Day EMA has crossed its longer term average like 200 day EMA. Next resistance is seen at Rs 500 where a triple top formation occurred earlier. This can be a good momentum pick for September.Sterlite Technologies – Target: Rs 180, Stop-loss: Rs 130
Despite being a midcap , this company has high aspirations in implementing 5G network in India. They are working with Tech Mahindra and Reliance Jio for the same. Company manufacture telecom equipment and optical fibre cables. Have grabbed several projects in SMART City projects. Also during the Independence Day speech by Prime Minister it was announced 6 lakhs villages will be enabled with high speed internet and cable. This will extensively require optical fibre cable and equipment exactly in the field of the company. Technically, the stock has taken support on 100 Day moving average and has bounced above its 200 day EMA after two-and-a-half years. Momentum and volumes are building up in the counter signifying consistent buying.
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This is a press release that has been published from a syndicated feed and has not been edited by Moneycontrol staff. Disclaimer: Reliance Industries (RIL), which also controls Jio Platforms, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments which publishes Moneycontrol.