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Last Updated : Aug 26, 2020 07:17 AM IST | Source: Moneycontrol.com

Hot Stocks | IFB Industries, India Glycols and Atul Auto look attractive for short term

We may witness stock-specific moves in the coming sessions with some consolidation in the index within the range of 11,550-11,350.

Shitij Gandhi
 
 
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Shitij Gandhi

Indian markets continued its positive momentum on Tuesday with support coming from banking, auto and financial sector.

Bajaj Finance along with Axis Bank, ICICI Bank and State Bank of India supported a sharp move in Bank Nifty while metal, realty and FMCG counters witnessed profit-booking at higher levels.

Close

On the derivative front, call writers could cap any sharp up-move in Nifty in the coming sessions as 11,500 and 11,550 strikes witnessed hefty open interest build-up.

On the downside, 11,400 would act as immediate support for Nifty. The market is likely to remain volatile in the coming sessions as we have an expiry of August series.

We may witness stock-specific moves in the coming sessions with some consolidation in the index within the range of 11,550-11,350.

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

IFB Industries | Buy | LTP: Rs 486 | Target price: Rs 556 | Stop loss: Rs 430 | Upside: 14%

The stock has been consistently maintaining its uptrend and can be seen trading in a rising channel on broader charts.

This week, the stock has given a fresh breakout above its 200-days exponential moving average on daily intervals after a prolonged consolidation of nearly four months within the range of Rs 350 to Rs 450.

Additionally, the stock has also formed a rounding bottom pattern on daily charts and given breakout above the same with marginally higher volumes which suggests more upside in the prices.

Traders can accumulate the stock in the range of Rs 475-480.

India Glycols | Buy | LTP: Rs 311.55 | Target price: Rs 348 | Stop loss: Rs 280 | Upside: 12%

In the recent past, the stock has given a sharp breakout above Rs 250 and tested Rs 300 levels in a short span of time.

However, thereafter consolidation in prices kept the stock within the range of Rs 260 to Rs 300 for at least ten weeks.

Now this week, a fresh breakout has been witnessed in the prices after a prolonged consolidation with the stock closing above its key resistance level at Rs 300.

Traders can accumulate the stock in the range of Rs 305-310.

Atul Auto | Buy | LTP: Rs 189.30 | Target price: Rs 211 | Stop loss: Rs 170 | Upside: 11.5%

For the last four months, the stock has been consolidating in the range of Rs 150 to Rs 180 with prices holding well above their short-term moving averages on daily and weekly intervals.

At the current juncture, the stock has given a consolidation breakout with positive divergences on the secondary oscillators along with a rise in price and volume.

On the daily charts, the stock has also managed to give breakout above its 200-days exponential moving average which suggests bullish momentum may carry on in the upcoming sessions as well.

Traders can accumulate the stock in the range of Rs 185-190 levels.

(The author is Senior Technical Analyst at SMC Global Securities)

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.
First Published on Aug 26, 2020 07:17 am
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