Hot Stocks | Strong rally of 14-16% possible in Canara Bank, BPCL, KEC International in short term; here's why

The index has a strong support at 19,230, followed by 19,000 and 18,640, while on the higher side, 19,800, followed by 20,060 are crucial levels to watch out for. The overall trend looks positive for the Nifty50.

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

KEC International: Buy | LTP: Rs 597.55 | Stop-Loss: Rs 560 | Target: Rs 685 | Return: 14 percent

KEC stock has been exhibiting strong momentum as it trades near record high levels. Furthermore, the stock recently experienced a breakout of the Cup & Handle pattern, which suggests a continuation of the upward trend. This breakout occurred in early May 2023.

Analyzing the daily timeframe, the stock is currently positioned above its key moving averages, namely the 50-day and 200-day exponential moving averages (EMA). This confirms the presence of an uptrend in the stock's price.

Additionally, the momentum indicator, RSI, on the weekly timeframe has also shown a breakout, indicating the presence of positive momentum. We expect the prices to move higher till Rs 685 level, where the stop-loss must be Rs 560 strictly on the closing basis.

Canara Bank: Buy | LTP: Rs 325.85 | Stop-Loss: Rs 305 | Target: Rs 375 | Return: 15 percent

Canara Bank is currently trading above multi-year high levels from 2018, which indicates a strong momentum in the stock, while around the level of Rs 250, change in polarity of the prices can be found too which illustrates the positive undertone of the prices.

Moreover, on the daily timeframe, the stock has experienced a breakout of the Symmetrical Triangle pattern, suggesting a continuation of the upward trend.

Furthermore, both the weekly and daily Relative Strength Index (RSI) for the stock are rising and have consistently remained above the 60 mark. This indicates the presence of positive momentum in the stock's price movement.

Considering these factors, it can be inferred that Canara Bank is exhibiting robust performance. Going ahead, we expect the prices to move higher till the level of Rs 375 where the stop-loss must be Rs 305 on the closing basis.

BPCL: Buy | LTP: Rs 393.3 | Stop-Loss: Rs 370 | Target: Rs 455 | Return: 16 percent

On the long term charts, Bharat Petroleum Corporation (BPCL) has been forming a Symmetrical Triangle pattern since 2016. However, on the weekly charts the stock is forming Higher Top Higher Bottom formation indicating positive undertone of the stock.

On the daily charts, the stock has given an Inverse Head & Shoulder pattern breakout and formed a CIP (Change in Polarity) formation near 355 levels which confirms the bullish structure of the stock.

Also, the stock is sustaining above its important moving averages like 50, 100 & 200-day SMA (simple moving average) which shows the bullish structure of the stock. The momentum indicator RSI on the weekly timeframe is rising and sustaining above 65 levels reflecting presence of positive momentum.

We expect the prices to move higher till Rs 455 level, where the stop-loss must be Rs 370 strictly on the closing basis.

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