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Hot Stocks | 'Can bet on Bank of Baroda, Kotak Mahindra Bank and Union Bank for double-digit returns in 2-3 weeks'

Nifty is currently heading lower towards 18,000-17,900 and this zone will act as a key support. If this level is breached, the index can move even lower towards 17,600, said Karan Pai of GEPL Capital.

October 22, 2021 / 07:25 AM IST
 
 
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After testing a fresh lifetime high of 18,604 on October 19, Nifty started to move lower. The profit booking spree continued for the third straight session on October 21 and the Nifty almost marked a low of 18,000.

The price action points towards the possibility of the index further witnessing profit booking and the momentum indicators point towards decreasing bullish momentum in the prices.

On the open interest (November 25 options) front, the highest open interest was seen in the 19,000 Call and participation was seen in the 18,000 Put contracts. Thus, we can expect the broader range of the index to be 18,000-19,000.

Looking at the charts, we believe, currently the index is heading lower towards 18,000-17,900. This zone will act as a key support. And if this level is breached, the index can move even lower towards 17,600.

On the upside, 18,600 will be the level to watch in the coming week. If the prices breach above this level, the index can move towards the 19,000 mark.

Close

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

Bank of Baroda: Buy | LTP: Rs 95.45 | Stop Loss: Rs 85 | Target: Rs 109 | Return: 28 percent

For the past 3 weeks, Bank of Baroda has been forming a higher high, higher low pattern after breaking above the downward slopping trendline. Looking at the price action, the momentum indicators, and other technical parameters, we believe this stock has a lot of upside potential left.

If the prices breach above the previous swing high of Rs 109. If this level is breached, we might see the stock move towards the Rs 122. It seems to be a good buying candidate with upside targets of Rs 109 and Rs 122. We recommend a stop loss of Rs 85.

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Kotak Mahindra Bank: Buy | LTP: Rs 2,143.75 | Stop Loss: Rs 2,050 | Target: Rs 2,273 | Return: 14 percent

After choppy moves in last few sessions, on October 21 the stock gained momentum and moved higher with good volume buildup. The price action and the volumes point to the possibility of increasing bullish momentum and the prices moving towards fresh lifetime highs.

Investors can accumulate Kotak Mahindra Bank at this point and hold with a target of Rs 2,273 and Rs 2,449 and maintain a stop loss of Rs 2,050 on closing basis.

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Union Bank of India: Buy | LTP: Rs 50.65 | Stop Loss: Rs 45 | Target: Rs 65 | Return: 28 percent

Union Bank has been forming a higher high, higher low pattern after moving out of consolidation. This breakout and up move is also backed by rising volumes. The momentum indicators and the technical parameters all point towards the possibility of the prices moving higher towards Rs 54 immediately, and then further towards Rs 65.

The bullish view will be negated if the prices breach below the Rs 45. We also recommend this level to be a strict stop loss.

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Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Karan Pai

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