JustDial, L&T Finance could give up to 24% return in short term, says Likhita Chepa of CapitalVia Global Research

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26 Aug, 2025 12:21

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Largecaps seem to be trading at a comparatively higher premium as compared to the mid and small caps and this might be the reason for the investors revisiting their asset allocation in the equity segment and shifting a considerable amount of their investment from the large to the mid and small caps, Likhita Chepa, Senior Research Analyst at CapitalVia Global Research Limited, said in an interview with Moneycontrol’s Kshitij Anand.

edited excerpts:

Q) Market saw consolidation last week but the good part is that there is a lot of buying support at lower levels. What led to the price action?

A) Earnings announcements by most of the firms were the major factor guiding the markets on the domestic front. During the second half of the week, major Asian markets remained closed due to the ongoing lunar New Year.

This muted the sentiments of the investors which led to a range-bound movement this week although most of the firms came out with strong numbers.

From the FII activity, it can be drawn that every correction was used as an opportunity to buy as the days on which Nifty ended at a lower note witnessed a higher amount of foreign fund as compared to the days on which Nifty ended at a higher note.

On the contrary, the DII’s appear to book profit at higher levels amid higher volatility.

Q) Small & Midcaps also consolidated but overall they remained fairly stable in the week gone by. What led to the price action and any interesting stock charts you are seeing n the broader market space?

A) Around 15 stocks generated more than 10 percent weekly gains in the mid and small-cap space as against only one stock giving more than 10 percent weekly return in the Nifty50 pack.

From the valuation point of view, large caps seem to be trading at a comparatively higher premium as compared to the mid and smallcaps.

This might be the reason for the investors revisiting their asset allocation in the equity segment and shifting a considerable amount of their investment from the large to the mid and small caps.

Few picks which look attractive from this space are:

JustDial: Buy above Rs 687 | LTP: Rs 676 | Target: Rs 840 | Stop Loss: Rs 560 | Upside 24%

This stock took support of its 100 and 200-Days EMA which indicates signs of a reversal after witnessing a significant amount of correction in the past few weeks.

It has also formed higher high and higher low on its weekly chart. Therefore, we recommend buying stock above Rs 687 with a stop loss of Rs 560 and a target of Rs 840.

L&T Finance Holding: Buy above Rs 96.10 | Target: Rs 120 | Stop Loss: Rs 80 | Upside 24%
This stock has formed an Insider Bar pattern and has taken the support of its 100-Days EMA. It has been in a consolidation phase for quite some time. Any breakout above the level of Rs 96 would add further upward momentum to the stock.

We suggest buying the stock above the level of Rs 96.10 with a stop loss of Rs 80 and a target of Rs 120.

Q) Which are the important levels that one should track this week for Nifty and Nifty bank? And data points which one should watch out for?

A) With earnings season nearing an end, Indian markets are expected to follow the global cues. Investors would be eyeing the roll-out of any stimulus package in the US. Going ahead, investors should maintain a stock-specific approach.

The Nifty seems to have immediate support at 14,850 followed by 14,700. It is likely to face resistance around the 15,250 – 15,300 zone followed by 15,500.

Q) Please suggest 3-5 trading ideas for the next 3-4 weeks with the target, and stop-loss along with the rationale.

A) Here is a list of top trading ideas for the next 3-4 weeks:

Dhani Services: Buy above Rs 375.10 | LTP: Rs 363 | Target: Rs 440 | Stop Loss: Rs 325 | Upside 17%

This stock has formed an Insider Bar patter and is trading above its important moving averages. Any breakout above the level of Rs 375 would lead to a rally in the stock.

We recommend initiating a long position in this stock above Rs 375.10 with a stop loss of Rs 325 and a target of Rs 440.

Hindustan Aeronautics: Buy above Rs 1066| LTP: Rs 1027| Target: Rs 1260| Stop Loss: Rs 895| Upside 18%

This stock has formed a Doji pattern and is trading above its important moving averages. Any breakout above the level of Rs 1065 would add momentum to the stock.

We recommend initiating a long position in this stock above 1066 with a stop loss of Rs 895 and a target of Rs 1260.

Trent: Buy above Rs 701 | LTP: Rs 868 | Target: Rs 760 | Stop Loss: Rs 660 | Upside 8%

This stock has given a trend line breakout in its daily charts and is in a consolidation phase. It is taking the support of its 100-Days EMA. Any breakout above the level of Rs 701 would add momentum to the stock.

We recommend initiating a long position in this stock above Rs 701 with a stop loss of Rs 660 and a target of Rs 760.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.