Hot Stocks | Archean Chemical, Tata Steel, HFCL may deliver in double digits

Expert picks these 3 stocks for shor t term

The Nifty has been on a consistent upward trend, forming higher tops and higher bottoms on monthly timeframes. While January saw indecisiveness with a Doji candle pattern, February showed robust momentum, leading the index reach a new milestone at 22,252.50.

Despite a correction in the initial days of February, the Nifty showed resilience, rebounding from lower levels in the latest week, indicating strong demand at lower price points. On the weekly scale, the index experienced mean reversion from the 9-week EMA (exponential moving average), which consistently acted as a support area.

Key technical indicators, including the relative strength index (RSI), remained positive, with levels above 60 on weekly and monthly intervals, reinforcing the bullish momentum.

Looking ahead, immediate resistance levels for the Nifty are seen at 22,500, followed by the 23,000 mark. On the downside, crucial support levels are identified at 21,850 and 21,530.

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

Archean Chemical Industries: Buy | LTP: Rs 746 | Stop-Loss: Rs 688 | Target: Rs 851 | Return: 14 percent

ACI is currently trading at its lifetime highs, indicating robust and resilient momentum in the market. The stock has shown a strong structural development, breaking out from a significant resistance zone established since February 2023, accompanied by a surge in volume above the 21-week average volume.

Moreover, ACI maintains its position above both the 12-week and 26-week exponential moving averages (EMA), reinforcing the bullish trend. The MACD (moving average convergence divergence) remains in positive territory, highlighting the strength of the trend supported by substantial momentum.

A noteworthy observation is the breakout of the sloping trendline in the ratio chart of ACI against Nifty. This development emphasizes the stock's robust strength and potential for sustained outperformance compared to the broader market.

Looking forward, there is an anticipation of further price ascent towards Rs 851 mark. It is recommended to set a stop-loss at Rs 688, strictly based on the closing basis.

Tata Steel: Buy | LTP: Rs 146 | Stop-Loss: Rs 135 | Target: Rs 163 | Return: 12 percent

Tata Steel exhibits a robust price structure, with a clear uptrend observed from April 2020 to August 2021. Subsequently, the stock entered a base formation phase and is now nearing its all-time highs, poised to break out of the base and resume its upward trajectory.

Furthermore, there has been a volume breakout, with the stock surpassing the average 21-week volume, indicating anticipation among large investors.

Currently, Tata Steel is trading above its key moving averages (12 and 26 weeks EMA), confirming the uptrend. Additionally, the RSI plotted on the weekly timeframe is rising and has sustained above the 60 mark, reflecting the increasing momentum of the underlying trend.

Going ahead we expect the prices to go higher till the level Rs of 163, the bullish view will be negated if we see prices sustaining below Rs 135 level.

HFCL: Buy | LTP: Rs 115 | Stop-Loss: Rs 104 | Target: Rs 135 | Return: 18 percent

HFCL is presently trading at its all-time highs, indicating robust momentum in the market. The stock has demonstrated a resilient structural development, characterized by a sharp rally in the initial phase, forming higher tops and higher bottoms since its low in March 2020. Following this, in the second phase, the stock underwent consolidation with reduced volume, establishing a base at the 100-week EMA.

In the current third phase, HFCL has broken out of the consolidation phase with significant volume participation, signaling readiness for a continued upward trajectory.

Moreover, the ADX (average directional index) study stands at 39, with the +DI (directional indicator) at 36 for the current week, suggesting the establishment of a strong uptrend. Additionally, the ratio chart of HFCL against the Nifty has experienced a breakout of the sloping trendline, indicating outperformance and supporting the ongoing upward trend in the stock.

Looking forward, there is an anticipation of further price ascent towards the 135 mark. It is recommended to set a stop-loss at 104, strictly based on the closing basis.