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Hot Stocks | Aarti Industries, Pidilite, Dabur India can give up to 13% return in short term

Nifty expected to trade within a broader range of 14,600-15,000 ahead of the March series expiry

March 24, 2021 / 07:16 AM IST
 
 
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The Indian market began this week on a positive note as Nifty rebounded sharply after testing the low of 14,350 last week.

Bank Nifty showed some strength on March 23 as leading banking stocks like IndusInd Bank, ICICI Bank, HDFC Bank and Axis Bank bounced back from their recent lows.

On the derivative front, Put writers added hefty open interest at 14,500, 14,600 and 14,700 strikes which should act as immediate support for Nifty.

However, Call writers were seen shifting to higher bands as 15,000 call strike holds the maximum open interest of nearly 41 lakh shares.

On the technical front, secondary oscillators are showing some mixed divergences which point towards further consolidation in price.

Close

We expect Nifty to trade within a broader range of 14,600-15,000 ahead of the March series expiry.

Traders should keep stock-specific action on the radar with bias likely to remain in favour of bulls as long as Nifty is above 14,600.

Here are three buy calls for the next 2-3 weeks:

Aarti Industries | LTP: Rs 1,287 | Target price: Rs 1,460 | Stop loss: Rs 1,180 | Upside: 13%

In the recent past, the stock tested Rs 1,335 level and then sharply slipped towards Rs 1,200.

It took support at its 100-day exponential moving average on the daily interval and made a V-shape recovery as the stock once again reclaimed a level above its short-term moving averages.

At the current juncture, the stock has once again given a fresh breakout above Rs 1,285 after consolidating in the range of Rs 1,240-1,285 for almost three weeks.

The breakout can be witnessed above ascending triangle pattern along with positive divergences on secondary oscillators which suggests an up move is possible.

Traders can accumulate the stock in the range of Rs 1,285-1,290 for the upside target of Rs 1,460.

Pidilite Industries | LTP: Rs 1,787.25 | Target price: Rs 2,000 | Stop loss: Rs 1,660 | Upside: 12%

After testing a 52-week high of Rs 1,842 in January 2021, this stock fell sharply towards Rs 1,700 on the back of profit-booking at higher levels.

However, it took support at its 100-day exponential moving average on the daily interval and is seen consolidating in a broader range of Rs 1,700-1,800 since then.

At the current juncture, this stock has formed a triple bottom pattern around Rs 1,700 and given a sharp run towards Rs 1,800 once again.

The price-volume action around the breakout level suggests the next upswing in the prices is coming.

Traders can accumulate the stock in the range of Rs 1,785-1,790 for the upside target of Rs 2,000.

Dabur India | LTP: Rs 532.80 | Target price: Rs 570 | Stop loss: Rs 505 | Upside: 7%

After taking support at its 200-day exponential moving average on the daily charts around Rs 500, this stock witnessed a sharp up move towards Rs 535 in a short span of time.

However, it has been consolidating in a broader range of Rs 515-535 since then.

It is holding well above its short and long-term moving averages on the daily and weekly intervals.

At the current juncture, the stock has formed an inverted head and shoulder pattern and is on the verge of a fresh breakout above the neckline of the pattern formation.

Traders can accumulate the stock in the range of Rs 530-535 for the upside target of Rs 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.
Shitij Gandhi is a senior technical analyst at SMC Global Securities
first published: Mar 24, 2021 07:08 am

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