Hot Stocks | Colgate, REC and Shriram Transport can give healthy returns in next 3-4 weeks

This week is also an eventful one as participants are closely eyeing the earnings announcements, macroeconomic prints and pre-budget discussions.

On the global front, though geopolitical tensions seem to have subsided, it will remain on traders’ radar. The much-awaited trade deal between the US and China is also scheduled to be signed this week.

On the earnings front, some of the big names such as IndusInd Bank, Wipro, HCL Technologies and HDFC Bank will announce their numbers.

Though we have seen a decent rebound of late, upside still seems capped, considering the strong hurdle at 12,300-12,400 for the Nifty.

Only a decisive breakout will result in sustainable up move ahead, else the consolidation will continue.

In the case of decline, 12,140 would act as immediate support and the major support will be at 11,850.

Meanwhile, volatility would remain high on the stock-specific front due to prevailing earnings season and global uncertainty, so plan your trades accordingly.

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

Colgate Palmolive (India) | Buy | LTP: Rs 1,476.65 | Target : Rs 1,525 | Stop loss: Rs 1,450 | Upside: 3.27%

After a marginal correction from its record high, the stock has been hovering in a range around the middle of the moving averages ribbon on the daily chart and now looks all set for a fresh rise.

The chart formation and confirmation indicators are also pointing towards the same. We advise initiating fresh longs within the zone of Rs 1,465-1,475.

REC | Buy | LTP: Rs 143.50 | Target: Rs 150 | Stop loss: Rs 139 | Upside: 4.5%

REC has been consolidating in a narrow range while holding strongly above the support zone of multiple moving averages on the daily chart.

After spending almost two weeks around that zone, it looks all set for a surge.

We advise creating fresh longs in the zone of Rs 141-143.

Shriram Transport Finance Company | Buy | LTP: Rs 1,164.15 | Target: Rs 1,220 | Stop loss: Rs 1,125 | Upside: 4.8%

Shriram Transport has been rebounding for the past five months, after retesting the monthly support zone around Rs 900 levels. It has recently surpassed the hurdle of multiple moving averages on the daily chart and is currently hovering in a range.

The chart pattern and confirmation indicators are pointing towards a sharp up move in the near future.

(The author is VP Research, Religare Broking)

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