Hot Stocks | Nifty eyes new milestones; expert sees 11% upside on these 2 stocks

Eventually, Nifty managed to close in the positive territory and now, is readying for testing new milestones.

The action-packed week with wild swings finally ended in the favour of mighty bulls and we are going by the famous phrase ‘all is well that ends well’. The wider smile is back on the faces of market participants.

Last Friday, Nifty continued its northward trajectory and with the help of a complete gush, it managed to clock fresh record highs beyond 12,300.

However, due to decent profit-booking in the latter half, Nifty came off considerably from highs but not to worry, the overall structure still looks sturdy.

Once Nifty manages to reclaim 12,300 again, the index may head towards the next milestones of 12,400–12,500 in this week itself.

On the lower side, 12,200, followed by 12,140 would be seen as immediate supports.

Traders are advised not to be adventurous by taking positions against the major direction. We have already seen the consequences of shorting this market in the week gone by.

The real highlight was the sheer outperformance of the mid and small-cap baskets. We have been quite vocal on this space of late and the way it has shaped up, we expect stellar moves from the broader end of the spectrum.

Do watch out for potential candidates from this universe along with the ‘auto’ counters who are poised for good moves in the near future.

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

Finolex Industries | Buy | LTP: Rs 576.90 | Target price: Rs 640 | Stop loss: Rs 536 | Upside: 11%

After trading in a broad range of Rs 530-560 for the last one month, the stock prices have broken above the higher range, confirming a bullish range breakout.

The last two sessions’ upmove is supported with a bullish gap and with increasing volume. In addition, the lead indicator RSI has hastened into the positive zone from the oversold zone, suggesting a strong positive momentum.

In the last few weeks, stocks from the midcap segments have been outperforming and going with all the above rationale, this stock, too, seems to be gearing up for a strong upmove in the near-term.

Indoco Remedies | Buy | LTP: Rs 195.90 | Target price: Rs 211 | Stop loss: Rs 186 | Upside: 8%

After a long time, the mid-cap stocks have finally joined the bull’s party and showed outperformance during the week gone by.

This mid-cap stock, after gyrating in a broad range of Rs 135-175 for the last five months, has finally broken the range last week on the higher side, confirming a ‘rectangular channel’ breakout.

In addition, prices on the daily chart have also closed above the supertrend indicator which acted as stiff resistance four times in the last few months.

Moreover, we are also witnessing a fresh bullish crossover with 50-EMA, crossing 89-EMA from below, supporting the buy call.

(The author is Chief Analyst-technical & derivatives, Angel Broking)

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