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Hot Stocks | Can bet on TCS, L&T Finance Holdings, Ramco Cements for short term

Traders should expect stock-specific action in the upcoming sessions rather than any sharp upside in the benchmark index

June 09, 2021 / 07:13 AM IST
 
 
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Nifty started the week on a positive note in continuation to the three consecutive weeks of gains, and hit fresh record high.

However, the market witnessed thin movement and was seen trading in a consolidation mode as traders shifted to stock-specific moves.

Derivative data suggests that the market is likely to consolidate in the upcoming sessions as both call writers and put writers are adding hefty open interest on both sides.

We expect Nifty to take a breather at the current juncture after a stunner rally and it may consolidate in a broader range of 15,600-15,900.

Close

Traders should expect stock-specific action in the upcoming sessions rather than any sharp upside in the index. However, the bias is likely to remain in the favour of bulls and buy on dips strategy is advised.

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

TCS | LTP: Rs 3,199.35 | Target price: Rs 3,462 | Stop loss: Rs 3,000 | Upside: 8%

After hitting its 52-week high of Rs 3,354 in April, this stock took a breather and fell towards Rs 3,000 to take support at its 100-day exponential moving average on the daily interval.

Since then, prices have been consolidating in the range of Rs 3,000-3,200. At the current juncture, it has formed a cup and handle pattern and has given a breakout above the pattern formation.

The breakout can be seen with rising volumes which suggest an up move in the prices going ahead.

L&T Finance Holdings | LTP: Rs 96.65 | Target price: Rs 108 | Stop loss: Rs 88 | Upside: 12%

Since March, this stock has been trading in a downward sloping channel and it saw a deep cut from Rs 110 to Rs 85.

However, in the recent past, it managed to take support at its 200-day exponential moving average on the daily timeframe and bounced back sharply once again to regain the momentum above its falling trendline of sloping channel.

At the current juncture, it has formed an inverted head and shoulder pattern and has given a breakout above the neckline of the pattern formation as well.

On the technical front, the stock has been maintaining its higher bottom formation on charts.

The Ramco Cements | LTP: Rs 998 | Target price: Rs 1,125 | Stop loss: Rs 920 | Upside: 13%

This stock has managed to take support at its 100-day exponential moving average multiple times and has been trading in a range of Rs 935-1,000.

At the current juncture, the stock has given a breakout above the W-pattern after a triple bottom formation on broader charts.

The positive divergences on secondary oscillators along with rising prices suggest the strength in the current trend.

It is holding well above its short and long-term moving averages as well.

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: Jun 9, 2021 07:13 am

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