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Hot Stocks | Kaveri Seeds, Indian Hume Pipe, Rupa & Company can give up to 15% return in short term

"Traders should remain bullish and accumulate longs with the stop loss of 15,600 on a closing basis," said Nandish Shah of HDFC Securities.

August 03, 2021 / 07:31 AM IST
 
 
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Nifty gained more than 100 points on August 2 on strong global cues to close at 15,885, its highest close since July 16.

The index broke out from the downward slopping trendline yesterday, adjoining the highs of July 16 and July 26.

It also filled the entire gap created on July 19. The benchmark index has resumed its uptrend and the possibility of it crossing 16,000 this time is very high.

On the derivatives front, we have seen Put writing at 15,600-15,700 levels. The 50-day exponential moving average (EMA) is placed around 15,600 and this level will act as strong support.

Close

Traders should remain bullish and accumulate longs with the stop loss of 15,600 on a closing basis.

On the higher side, once we cross the 16,000 level, Nifty may go to 16,300-16,400 levels in the coming weeks.

Nifty Midcap and smallcap indices have broken out on the daily chart to close at all-time high levels.

This year, they have outperformed by rising by 36 percent and 50 percent, respectively, against a 14 percent rise in the Nifty.

We expect their outperformance to continue for the coming weeks and months also. Therefore, the focus of the traders should be on mid and smallcaps for higher returns.

Here are three buy recommendations for the next 2-3 weeks:

Kaveri Seed Company | LTP: Rs 764 | Target price: Rs 840 | Stop loss: Rs 725 | Upside: 10%

This stock has broken out from the downward sloping trendline, adjoining the highs of May 17, July 5 and July 16 with higher volumes.

The primary trend of the stock is positive as it is trading above its 5, 20 and 50-day EMA.

RSI is in the rising mode and placed above 60, indicating a higher possibility of an uptrend.

Indian Hume Pipe Company | LTP: Rs 248 | Target price: Rs 275 | Stop loss: Rs 230 | Upside: 11%

This stock has broken out on the daily chart by surpassing the previous resistance of Rs 244 with higher volumes.

Plus DI is placed above the minus DI while the ADX line is placed above 25 on the daily charts, indicating momentum in the current uptrend.

Rupa & Company | LTP: Rs 532 | Target price: Rs 610 | Stop loss: Rs 490 | Upside: 15%

This stock has broken out on the weekly charts to close at an all-time high. On the daily chart, it has broken out from the two-month consolidation with a surge in volumes.

Oscillators like RSI and MFI are in rising mode and placed above 60. Plus DI is placed above the minus DI while the ADX line is placed above 25 on the daily charts, indicating momentum in the current uptrend.

(The author is a technical research analyst at HDFC 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.
Nandish Shah
first published: Aug 3, 2021 07:31 am

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