Hot Stocks | 'Bet on PI Industries, Dabur, Sanofi for short-term gains'

On the derivative front, 11,600 call strike holds maximum open interest while 11,000 holds a maximum open interest for puts with more than 19 lakh shares.

In the coming sessions, we expect volatility to likely to grip the market as sentiment would be driven by updates on the spread of coronavirus cases.

However, on the technical front, both the indices are still trading in a bearish territory as prices are holding below their 200-days exponential moving average on daily intervals.

Therefore, we advise traders to remain cautious as far as Nifty is concerned and keep stock-specific action on the radar.

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

PI Industries | Buy | LTP: Rs 1,570 | Target: Rs 1,745 | Stop loss: Rs 1,400 | Upside: 11.15%

The stock has been consistently moving in a rising channel with the formation of the higher high and higher bottom on weekly intervals.

On the daily charts, however, some consolidation can be seen in the range of Rs 1,500-1,600 during the last few weeks.

But this week, the stock is pointing towards a next up move as secondary oscillators are showing positive divergences at the current juncture after taking support at 100-days exponential moving average on a daily interval.

Traders can accumulate the stock in the range of Rs 1,530-1,545 for the upside target of Rs 1,745 with a stop loss below Rs 1,400.

Dabur India | Buy | LTP: Rs 507.30 | Target: Rs 540 | Stop loss: Rs 475 | Upside: 6.45%

During the last two months, the stock has been consistently moving up and took the rally from Rs 450 to Rs 520 along with constant buying at support levels.

At the current juncture, despite a weak market, the stock has shown resistance and managed to hold above its short and long-term moving averages on the daily interval and formed a symmetrical triangle pattern.

This week, we have observed a fresh breakout into the prices above the falling trendline pattern formation which could trigger follow up buying in the stock.

Traders can accumulate the stock in the range of Rs 500-505 for the upside target of Rs 540 with a stop loss below Rs 475.

Sanofi India | Buy | LTP: Rs 7,385 | Target: 8,200 | Stop loss: Rs 6,800 | Upside: 11%

The stock can be seen trading in a rising channel with the formation of higher high and higher bottom pattern.

Few weeks back, a fresh breakout was observed above Rs 7,000 which triggered the follow up buying and the stock tested its 52-week high of Rs 7,640.

Now once again, marginally higher volumes have been witnessed at the current juncture with the rise in price which should move the stock towards new highs in the coming sessions.

Traders can accumulate the stock in the range of Rs 7,320-7,390 for the upside target of Rs 8,200 with a stop loss below Rs 6,800.

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

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