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Hot Stocks | Tinplate Company, BHEL can give up to 16% return in short term

Traders are advised to keep focussing on thematic bets and should ideally avoid aggressive bets in indices.

January 04, 2021 / 07:07 AM IST

Representative image | Source: Pixabay

 
 
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Mankind had to witness a lot of unprecedented things in the year gone by.

Initially, it was very difficult to adjust to the forceful changes in our lives, but we always try to make our own ways in all the difficulties and this is exactly what has been proved all these months.

The year 2020 was full of shocks and surprises, but as we always say 'all’s well that ends well'.

We not only stabilised from the March chaos but also managed to give a stupendous V-shaped recovery in the last nine months to even surpass pre-COVID highs with some authority.

Close

During the concluding week of the calendar year 2020, Nifty added another couple of percent to bulls’ kitty and importantly reached yet another milestone of 14,000.

There are lots of expectations built as we step into the New Year. In a broader view, we are heading for much bigger levels from here on, but it would be unfair to expect the similar kind of linear move that we have been enjoying since early November.

In between, markets are likely to give some corrections, which would be a healthy sign.

For this week, we expect the Nifty to slowly and gradually head towards 14,150-14,200, whereas the key support zone is placed at 13,950 - 13,850 levels.

Last week, although there was some muted action seen in key indices, the broader market just took off in the last couple of days.

Hence, the real action lies in the broader end of the spectrum which may continue to provide better trading opportunities.

Traders are advised to keep focussing on thematic bets and should ideally avoid aggressive bets in indices.

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

Tinplate Company of India | LTP: Rs 167.25 | Target price: Rs 192 | Stop loss: Rs 150 | Upside: 15%

This ‘Tata’ group company has been quiet for the last three months after a spectacular move from March lows.

On Friday, the buying momentum accelerated in the stock in the latter half, which resulted in a strong breakout from multiple hurdles.

The volumes in this move were phenomenal, nearly six times its average daily volumes, providing credence to the move.

With this, the weekly and monthly timeframe charts look extremely promising and hence, we recommend going long on a decline towards Rs 162 for a target of Rs 192 in the coming days.

BHEL | LTP: Rs 38.65 | Target price: Rs 45 | Stop loss: Rs 35.90 | Upside: 16%

This one of the ‘Navratna’ companies has been a sheer underperformer throughout this decade.

From its 300 plus all-time highs, the stock prices kept sinking after the year 2010. Now, we have been observing some interesting price and volume activity in this stock for the last 3–4 months.

Although it’s still difficult to say whether the stock has enough potential to reach even half of its record highs, the possibility of some decent move in the coming weeks cannot be ruled out.

On Friday, the stock had a huge price upsurge along with sizable volumes to confirm a bullish 'Cup and Handle’ pattern.

Traders are advised to use any dip to go long for targets of Rs 42-45 in the coming weeks. The strict stop loss can be placed at Rs 35.90.

(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: Jan 4, 2021 07:07 am

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