Hot Stocks | Double-digit returns possible from Federal Bank, JK Paper, Borosil in short term, here's why

Looking at the overall chart pattern, we feel that the trend of the Nifty may remain sideways between 17,500 – 16,747. The index can only witness a trending phase if 17,500 is surpassed on the upside or 16,747 is breached on the downside.

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

Federal Bank: Buy | LTP: Rs 124.90 | Stop-Loss: Rs 109 | Target: Rs 150 | Return: 20 percent

Federal Bank, since March 2020 lows, did not get into lower high, lower low formation, which shows the bullish sentiment behind the stock.

The stock has shown a bounce on the upside after retesting the neckline of inverse head and shoulders pattern that indicates a continuation in the prior uptrend.

On the ratio charts versus Nifty, the stock seems to be a clear outperformer.

RSI plotted on the weekly timeframe is moving in sync with the price action while sustaining above 50 mark reflects strong momentum in prices.

Going ahead we expect the prices to go higher till the level of Rs 150 where the stop-loss must be Rs 109 on a closing basis.

JK Paper: Buy | LTP: Rs 395 | Stop-Loss: Rs 370 | Target: Rs 480 | Return: 21 percent

JK Paper is currently trading near its record which tells that the stock already is in strong momentum.

The trend in the stock is gradually rising, pointing towards acceleration in price trend.

Around Rs 350 levels, the stock is witnessing a change in polarity which indicates rising bullish sentiment in prices.

The stock has surpassed key moving averages of 50 & 200 day EMA (exponential moving average), confirming that the uptrend is still intact.

RSI on the daily as well as on the weekly time frame is above 50 reflecting the presence of momentum in the prices.

Going ahead we expect the prices to go higher till the level of Rs 480 where the stop-loss must be Rs 370 on a closing basis.

Borosil: Buy | LTP: Rs 431.65 | Stop-Loss: Rs 380 | Target: Rs 550 | Return: 27 percent

Borosil has started to get into Higher High, Higher Low formation which tells that the stock has shown a bounce on the upside after retesting the neckline of inverse head and shoulders pattern in October 2022 that indicates a continuation in the prior uptrend.

Prices on the daily timeframe are hovering around the Upper Bollinger band which states rising volatility in prices.

RSI on daily as well as on weekly timeframe has shown a breakout which suggests the stock has a strong momentum built-up.

Going ahead, we expect the prices to go higher till the level of Rs 550 where the stop-loss must be Rs 380 on a closing basis.

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