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Hot Stocks | Double-digit returns from Minda Corporation, AU Small Finance Bank, TCI Express possible in short term, here is why

The derivative data suggests that Nifty is likely to witness further short covering and move towards the 18,400 mark in upcoming sessions.

October 27, 2021 / 07:45 AM IST
 
 
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Indian markets begin this week on a positive note as Nifty indices bounced back above 18,200 mark as metal, realty and auto counters witnessed some buying momentum from lower levels. From a technical front, the index is holding well above its 20-day exponential moving average on a daily interval which is placed around the key psychological mark of 18,000.

From the derivative front, Call writers were seen covering their position at the 18,200 strike while Put writers added fresh open interest at the 18,200 strike. The derivative data suggests that Nifty is likely to witness further short covering and move towards 18,400 mark in upcoming sessions.

On downside 18,000 levels would act as a strong support for Nifty with volatility likely to remain high on back of October series expiry.

Here are three buy calls for next two-three weeks:

AU Small Finance Bank: Buy | LTP: Rs 1,260.95 | Stop Loss: Rs 1,140 | Target: Rs 1,450 | Return: 15 percent

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In the recent past, the stock has formed a double bottom pattern around Rs 1,070 levels and took support at its 200-day exponential moving average to once again regain a momentum above its short term moving averages.

At current juncture, the stock has given a V shape recovery from its 100-day exponential moving average and given breakout above key resistance level of Rs 1,250 level. The breakout is seen after consolidation of nearly three weeks.

Traders can accumulate the stock in range of Rs 1,250-1,260 levels for the upside target of Rs 1,450 levels with stop loss below Rs 1,140.

Image126102021

TCI Express: Buy | LTP: Rs 1,835.75 | Stop Loss: Rs 1,650 | Target: Rs 2,100 | Return: 14.4 percent

The stock can be seen trading in a rising channel with formation of higher high and higher bottom patterns. Alongside, price is well maintained above its short and long term moving averages on broader charts.

This week stock has given breakout above its previous high of Rs 1,747 level. The breakout can be seen with high volumes, above the rising trend line of the upward channel. The price volume action in stock suggests the next upswing into the prices.

Traders can accumulate the stock in range of Rs 1,810-1,835 levels for the upside target of Rs 2,100 levels with stop loss below Rs 1,650.

Image226102021

Minda Corporation: Buy | LTP: Rs 139.15 | Stop Loss: Rs 122 | Target: Rs 158 | Return: 13.5 percent

After witnessing a stunning move from Rs 100 to Rs 140 levels in a short span of time, the stock can be seen fluctuating in a broader range of Rs 120-140 from the last four months. However prices are maintaining well above its all important moving averages.

At current juncture, the stock can be seen trading in a rising channel and is on verge of fresh breakout after a prolonged consolidation. The price volume activity observed this week points towards long build up into the prices.

Alongside, the positive divergences on secondary oscillators on daily charts also points towards the next upswing into the prices. Traders can accumulate the stock in range of Rs 135-139 levels for the upside target of Rs 158 levels with stop loss below Rs 122.

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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

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