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Last Updated : Oct 09, 2020 07:10 AM IST | Source: Moneycontrol.com

Hot Stocks | M&M Financial, Adani Ports, SBI Life can give 12-14% return in short term

On the downside, supports are far, in the band of 11,380-11,400 which is the last week's close and the band of averages.

Vikas Jain
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Todays L/H

Nifty closed at a 7-month high with strong momentum across sectors and stocks.

The index is up 9.5 percent while Midcap100 and Smallcap are up 6.9 percent to date from the last expiry.


Among sectors, Nifty IT, Bank and Auto are the outperformers, gaining 14.3 percent, 13.3 percent and 10.3 percent, respectively, while Pharma and Metal gained 7.7 percent.

Energy and FMCG are the laggards in the current momentum.

We continue to remain positive with intermediate resistance at 12,050-12,100 levels, which is the lower top from where the sharp correction started in the last week of February 2020.

On the downside, supports are far, in the band of 11,380-11,400 which is the last week's close and the band of averages.

The quarterly earnings season has just started and the focus will be on individual results.

We believe mid-caps and small-caps would outperform from the current levels, while the headline indices will be in a range.

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

Mahindra & Mahindra Financial Services | Buy | LTP: Rs 129.50 | Target price: Rs 148 | Stop loss: Rs 118 | Upside: 14%

The stock has witnessed a good correction after its rights issue, retracing 50 percent of the previous move from Rs 75 to Rs 150.

The crossover of its short and medium-term averages on daily charts with strong volumes reinforces our positive stance.

The sector is in positive momentum and RSI trading upwards from its average line gives the confirmation of a strong move.

Adani Ports | Buy | LTP: Rs 359.85 | Target price: Rs 405 | Stop loss: Rs 335 | Upside: 13%

The stock is on the verge of its 200-week average breakout which has been attempted at various counts over the past few months.

Stochastic & RSI, on weekly chats, are also coinciding with our view, as both the indicators are in bullish mode.

In the case of a major decline, multiple bands of averages on daily charts in the range of Rs 338-342 levels would act as strong support for the stock.

SBI Life Insurance Company | Buy | LTP: Rs 821.95 | Target price: Rs 920 | Stop loss: Rs 757 | Upside: 12%

The stock reversed near Rs 770 of its previous up-move from Rs 519 to Rs 921, after taking support at 38.2 percent retracement.

We have observed positive divergence in RSI and Stochastic and higher low formation on price charts.

As per the weekly setup, we believe the stock will hold its 100-week average and it will recover previous damages.

(The author is Senior Research Analyst at Reliance 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 Oct 9, 2020 07:10 am