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Budget 2021

Associate Partners:

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Hot Stocks | ONGC, HDFC AMC can give up to 11% return in short term

November was a historical month for our markets as we saw two key indices, Nifty and Bank Nifty clocking sizable gains over 11 percent and 23 percent, respectively.

December 01, 2020 / 07:27 AM IST
 
 
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In the week gone by, Nifty registered a fresh record high of 13,145, but saw some profit-booking at higher levels.

However, it didn’t correct much as the undertone remained strongly bullish. In fact, we saw modest recovery towards the fag end to conclude the week with nearly a percent gain around the 13,000-mark.

November was a historical month for our markets as we saw two key indices, Nifty and Bank Nifty, clocking sizable gains over 11 percent and 23 percent, respectively.

Nifty surpassed its previous record high and reached the milestone of 13,000. FIIs have been the charioteer of this mesmerizing rally as they relentlessly pumped money into our market to mark the biggest single-month inflows over Rs 50,000 crore.

Close

Coming back to the levels, 13,040 - 13,146 remain an immediate resistance zone, whereas, on the lower side, 12,900 - 12,868 - 12,790 can be seen as a cluster of supports.

With last week’s minor decline, 12,790 - 12,730 has become sacrosanct support and till the time it is not breached convincingly, one should trade with a positive bias.

Although the overall trend has been strongly bullish, we still believe that one should avoid aggressive bets. Focus on individual stocks with proper risk management.

The ideal range for the coming sessions would be 13,150 - 12,730 and till the time we do not break out outside this range, we are likely to see trades on both sides, especially in indices.

Above 13,150, the next levels to watch out for would be 13,250 - 13,400 and the move will not be as swift as it has been in the recent past.

The real action continues in the broader markets as we can see stellar moves in a lot of mid and small counters.

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

ONGC | LTP: Rs 78.45 | Target price: Rs 87 | Stop loss: Rs 73.70 | Upside: 11%

This one of the ‘Maharatna’ companies in India has failed to live up to the expectations of investors over the past 6 years now.

After such a long stint of underperformance, we are now observing some early signs of revival.

In the month of November, the stock prices clocked handsome gains over 20 percent and importantly it’s backed by considerably higher volumes, which is a sign of strong buying interest in the stock.

In this process, prices convincingly surpassed ‘200-day SMA’ for the first time since July 2019 and are spending some time above it.

All these observations indicate a possibility of a decent rally unfolding in days to come.

HDFC Asset Management Company (AMC) | LTP: Rs 2,526 | Target price: Rs 2,720 | Stop loss: Rs 2,478 | Upside: 8%

This marquee name had given a stellar move last year but it was followed by a sharp correction early this year in the massive broader market sell-off.

This stock did not move at all when the entire market took-off after March lows.

We can see some encouraging signs on smaller degree charts as the daily timeframe depicts a breakout from the bullish ‘Cup and Handle’ pattern.

The stock managed to traverse the 200-day SMA as well and looking at the overall price-volume activity in the last few weeks, we expect the stock to do well.

(The author is Chief Technical & Derivatives Analyst at Angel Broking)

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.
Sameet Chavan
first published: Dec 1, 2020 07:27 am

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