Hot Stocks | Double-digit return possible in Sumitomo Chemical, Rupa & Company, Jash Engineering in short term. Here's why

Motilal Oswal announced buyback of shares. Motilal Oswal Financial board approved buyback of upto 1.46 million shares at Rs 1100 a share. The company said it decided to use a tender offer route for buying of shares. The firm has fixed 27 May as the record date for the buyback.The stock is down nearly 25% from its July 2021 high. Recently Morning Context reported that there is rift between Motilal Oswal and Raamdeo Agrawal. However, the spokesperson denied such development.

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Santosh Meena, Head of Research at Swastika Investmart

The Nifty is witnessing a powerful pullback followed by a base creation process at 15,740 level near the previous swing low of 15,670, on May 17. The Indian markets ignored the weak listing of LIC IPO and took cues from global peers which were in a bullish mood after China eased its lockdown.

If we talk about our market, then there was selling exhaustion because selling momentum by FIIs in the cash market has come down whereas they have created a long position in the index future in Monday's trading session. As of now, we should call it a short-covering bounce and wait for further confirmation to understand the strength of reversal.

Technically, 16,400 is an immediate hurdle; above this, 16,640 will be a critical hurdle. On the downside, 16,080-15,980 will act as an immediate demand zone.

Bank Nifty also witnessed a smart rally from a psychological level of 33,000 where 34,800-35,200 will be an immediate and critical supply zone. Above this, we can expect a powerful short-covering rally. On the downside, 34,000-33,700 will act as an immediate demand zone.

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Santosh Meena

Head of Research|Swastika Investmart Ltd

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

Sumitomo Chemical India: Buy | LTP: Rs 449.5 | Stop-Loss: Rs 420 | Target: Rs 500 | Return: 11 percent

The counter respected Rs 400 level that coincides with its 100 and 200-DMA (day moving average) and then witnessed a smart bounceback.

It managed to close above its all-important moving averages and it is likely to breakout resistance of Rs 460 that may generate further thrust in this counter for a move towards Rs 500 level.

Rupa & Company: Buy | LTP: Rs 538.75 | Stop-Loss: Rs 505 | Target: Rs 600 | Return: 11 percent

The counter took support at the cluster of 50, 100 and 200-DMA and managed to close above its 20-DMA after a smart pullback. Rs 550 is an immediate and horizontal resistance line. Above this, we can expect a rally towards Rs 600 level.

Momentum indicators are positively poised to support the current momentum of the counter.

Jash Engineering: Buy | LTP: Rs 692 | Stop-Loss: Rs 620 | Target: Rs 780 | Return: 13 percent

The counter is in strong bullish momentum and outperforming the broader market. It took support at 50-DMA after a pullback and now it is witnessing a breakout of bullish flag formation to resume its bullish momentum where Rs 780 looks an immediate target.

On the downside, 20-DMA of Rs 640 will act as an immediate support level. Momentum indicators are positively poised to support the current momentum of the counter.

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