9 gems for this Diwali picked by CapitalVia Global Research KPR Mills, Manappuram Finance, Kotak Mahindra Bank, Jammu and Kashmir Bank, Avenue Supermarts, KEC International, Mindtree, ONGC, Gujarat Alkalies & Chemicals are among the 9 stocks which can be looked at by investors this Diwali.
November 02, 2021 / 03:08 PM IST
In Samvat 2078, markets may not maintain the same pace and see some profit booking at higher levels. However, CapitalVia Global Research expects the sector and stock specific action to continue. It can expect a level of 22500 -23000 before next Diwali. Capital Goods, Banks, Power, Chemical and Textile could lead the next leg of the rally, in tandem with the growth impulses seen across the economy.
KPR Mills | Rating: Buy on dips | Target: Rs 540 | Currently, stock has formed a double bottom pattern on daily charts that can lead to bullish momentum. The Ministry of Infrastructure has approved a pilot project for geotextiles involving the design or commissioning technical personnel. On the technical side, the stock is moving towards the upper level of 20 average Bollinger bands.
Manappuram Finance | Rating: Buy on dips | Target: Rs 250 | Manappuram has been continuously moving on a bullish trend since last one month. This trend can break the all-time high of Rs 213. Relative strength Index hovering near overbought position and step behind Stochastic also doing the same. The stock is also trading near upper band of 20 average Bollinger bands.
Jammu and Kashmir Bank | Rating: Buy on dips | Target: Rs 60 | The board of Jammu & Kashmir Bank will review the proposed capital infusion of up to 5 billion Indian rupees ($67.9 million) by the Jammu & Kashmir government as promoter shareholder. This will help businesses expand on a greater scale. The stock is near to break the nearest resistance of Rs 44, and if it sustains above this level, then it can show Rs 53-65 level soon..
Kotak Mahindra Bank | Rating: Buy on dips | Target: Rs 2,470 | On technical charts, Kotak Bank is forming an “Inside Bar” candlestick pattern after a good breakout (supported by a decent impulse movement). As and when prices breach Rs 2,200 on weekly charts, we may again witness a continued Bullish momentum of 12-13 percent.
Avenue Supermarts | Rating: Buy on dips | Target: Rs 5950 | On Weekly Charts, DMART gave a good breakout from major supply area of Rs 4480-4500, and that too with above average volume, after which aggressive profit booking was witnessed throughout the consecutive week but, now prices have again tested support around Rs 4500 level and we may expect a good momentum of 25-26 percent percent from here.
KEC International | Rating: Buy on dips | Target: Rs 660 | Prices have given a smooth breakout from “Double Bottom” candlestick chart pattern with above average volume on weekly charts and so we may expect a continued bullish momentum, registering gains of 20 percent.
Mindtree | Rating: Buy on dips | Target: Rs 5378 | MindTree is planning to fuel its future growth in the EU through strategic acquisitions and alliances. Over the last five years, Mindtree Ltd earnings have increased by 14.9 percent, while its share price has increased by 58.5 percent CAGR.
ONGC | Rating: Buy on dips | Target: Rs 193 | ONGC is also planning to invest in a Regasification Terminal with a total capacity of 5-10 MMTPA as envisaged in Perspective Plan - 2030. The company earmarked Rs 30,000 crore towards capital expenditure in financial year 2021-22 and aims at an output of 22.56 million tons of crude oil and 24.89 billion cubic meters of gas during the year
Gujarat Alkalies & Chemicals | Rating: Buy on dips | Target: Rs 816 | The company is focusing on achieving a turnover of Rs 5,000 crore by 2021-22. In the last one-year, the stock has given a return of around 130 percent.