Hot Stocks | BPCL, Hindustan Unilever, Torrent Power can give up to 13% return in short-term

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On December 3, Nifty traded flat near all-time high but the broader markets continued their positive momentum with a sharp up-move in midcaps and smallcaps.

Nifty midcap and smallcap indices closed near 2-year highs and may continue to outperform the broader markets.

The advance-decline in the derivatives segment remained strong with 125 shares advancing and 14 declining for the current expiry month-till-date.

There could be some bouts of volatility due to the RBI monetary policy announcements.

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Vikas Jain

Senior Technicals and Derivative Analyst|Reliance Securities

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Bank Nifty is facing resistance near 30,200-30,500 levels and we expect some time-wise correction after a sharp up-move in the last 2 months.

Among sectors, we expect Nifty FMCG and Pharma index to outperform from the current levels as they have crossed the short-term averages.

Risk-reward is in favour of longs and we expect scaling a new all-time high.

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

BPCL | LTP: Rs 393.35 | Target price: Rs 445 | Stop loss: Rs 368 | Upside: 13%

The stock has made higher bottoms on the weekly charts and witnessed positive momentum crossing its 50-day average.

Trend reversal and RSI turning upwards from the bottom could witness a sharp up-move to test the recent highs.

As per the current set up, we believe the stock and sector will remain in focus for the next couple of weeks.

Hindustan Unilever | LTP: Rs 2,130 | Target price: Rs 2,380 | Stop loss: Rs 1,985 | Upside: 12%

The stock is trading sideways near its band of short and long-term averages and we expect the stock to give an upward breakout.

We believe it has completed its price and time-wise correction and now expect it to outperform over the next few weeks.

Torrent Power | LTP: Rs 324.80 | Target price: Rs 360 | Stop loss: Rs 300 | Upside: 11%

The stock has witnessed a sharp breakout with strong volumes after trading in a narrow range over the past two months.

Key technical indicator RSI is trading above its average line and has also reversed turning upwards, looking poised for a breakout from the current levels.

There are multiple support levels in the range of Rs 305-315 which offers a good risk-reward ratio from the current levels.

(The author is Senior Research Analyst at Reliance 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.