India’s Nifty 50 index has been moving within a range between 16,800 and 17,300 levels for quite some time with volatility on the rise and with a decisive breach above 17,300-17,350 zone would indicate some improvement in the overall bias, brokerage firm Prabhudas Lilladher said.
Nifty can go up to 17,600 and 18,000 levels. At the same time, a decisive breach below 16,800 would weaken the bias further with next targets of 16,600 and 16,300 levels, the brokerage added.
Overall, our Indian market has been outperforming the global markets and it is expected to rise 20,500-21,000 over next year.
Amid all the volatility, Prabhudas Lilladher has selected some promising stocks as Diwali Picks which on technical parameters have strength and potential to yield decent returns in the next one year time frame and which are also fundamentally well placed. The brokerage firm recommends to buy and accumulate below mentioned shares.
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Here are Prabhudas Lilladher's Top Diwali Stock Picks
Astral
Target: Rs 2,650-2,750
The stock has picked up well from the bottom made near Rs 1,600 levels to touch the peak level of Rs 2,650 zone and has strengthen the bias overall. Recently with a short correction and consolidation near the significant 50 day exponential moving average (EMA) level of Rs 2,170 zone, a higher bottom formation has been indicated on the daily chart from where we anticipate further decent rise in the coming days. The relative strength index (RSI) indicator also has flattened out after the slide and is well placed with improved bias and has potential to rise further. With the chart looking good, we anticipate an upward move in the coming days and we suggest to buy and accumulate this stock for an upside positional target of Rs 2,650-2,750 levels keeping the support near Rs 1,930 level.
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Balkrishna Industries
Target: Rs 2,420-2,500
The stock has witnessed a decent erosion in recent times and has taken support near Rs 1,830 zone and indicated a pullback to improve the bias and anticipate for a decent rise and we anticipate the stock to again regain strength and carry on the momentum further upward again to witness new targets. With the RSI indicator is also flattening out after the gradual slide witnessed recently, the stock is also well placed and gradually picking up to gain strength and with immense upside potential visible, the chart looks attractive. We suggest to buy and accumulate this stock for an upside positional target of Rs 2,420-2,500 levels keeping the support near Rs 1,750 level.
Bata India
Target: Rs 2,180-2,220
The stock has maintained above the downward sloping trend line and also has taken support at the trend line support of the ascending channel pattern of the daily chart near Rs 1,750 zone with overall bias improving as indicated by the RSI which is gradually picking up to show strength from near the oversold zone and is well placed with potential to rise further in the coming days. With the chart looking good, we suggest to buy and accumulate this stock for an upside positional target of Rs 2,180-2,220 levels keeping the support near Rs 1,630 level.
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Jindal Steel
Target: Rs 550-580
The stock has picked up with a strong momentum making a bottom near Rs 300 levels and with the trend getting stronger has maintained above the significant 200 day moving average (DMA) and 50 EMA level of Rs 420 zone with improving bias to make the chart look attractive. Recently with series of higher bottom formation pattern on the daily chart, the overall trend has been maintained strong to anticipate for decent rise in the coming days. The RSI indicator also is getting stronger again with a trend reversal and with the chart looking good, we suggest to buy and accumulate this stock for an upside positional target of Rs 550-580 levels keeping the support near Rs 380 level.
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Jubilant FoodWorks
Target: Rs 750-780
The stock after the decent correction has bottomed out near Rs 455 zone and thereafter has overall been in a rising trend moving up slowly and steadily maintaining above the significant 50EMA and 200DMA moving averages and with a breakout anticipated above the resistance trend line of Rs 650 level would further strengthen the bias for fresh upside targets of Rs 720-750 levels. The stock is gradually improving the bias and with the chart looking attractive, the RSI indicator is also well placed and getting stronger with immense upside potential visible. We suggest to buy and accumulate this stock for an upside positional target of Rs 750-780 levels keeping the support near Rs 530 level.
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Kotak Mahindra Bank
Target: Rs 2,240-2,300
The stock has given a decent pullback from the bottom made near Rs 1,630 levels and has moved past the significant 200DMA to improve the bias and has touched the recent peak zone of Rs 1,987 levels to indicate strength. Recently after a short correction witnessed it has again bottomed out near Rs 1,760 and with a pullback indicated again it has moved past the significant 200DMA and 50EMA to show improvement in the bias and has immense upside potential to carry on the momentum in the coming days. The RSI indicator has been getting stronger and is well placed with improved bias and rising trend and we anticipate an upward move in future. With the chart looking good, we suggest to buy and accumulate this stock for an upside positional target of Rs 2,240-2,300 levels having the support near Rs 1,680 level.
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Tata Consumer Products
Target: Rs 940-980
The stock has witnessed a short correction and taken support near the trendline zone of Rs 740 levels and has indicated a pullback to improve the bias and with a move past the significant 200DMA level of Rs 760, the trend is getting stronger to anticipate for further upward move in the coming days. The RSI indicator also has shown a prominent trend reversal from the oversold zone to signal a buy and has further immense upside potential. With the chart looking good, we suggest to buy and accumulate this stock for an upside positional target of Rs 940-980 levels keeping the support near Rs 695 level.
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Torrent Power
Target: Rs 610-650
The stock has witnessed decent swings in the past and currently after the decent correction from Rs 610 levels has shown signs of bottoming out near the trend line support zone of Rs 470-475 levels where it has shown consolidation and is anticipated to give a decent rise. The RSI indicator has attained the highly oversold zone and has gradually started picking up to improve the bias and expect a decent rise in the next 3-4 months time frame. With the chart looking good with favorable risk-reward ratio, we suggest to buy and accumulate this stock for an upside positional target of Rs 610-650 levels keeping the support near Rs 440 level.
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ITC
Target: Rs 425-450
The stock has witnessed a tremendous bull run in the past 4-5 months picking up momentum from Rs 208 levels to touch the peak level of Rs 350 zone. Recently with a short correction and consolidation witnessed, the overall bullish trend remains intact and with a weekly breakout above Rs 320 level indicated, we anticipate this stock to continue its upward move further till Rs 450 levels. With the chart looking attractive, we recommend a buy in this stock for an upside target of Rs 425-450 keeping a stop loss of 298.
KPIT Tech
Target: Rs 820-850
The stock has overall been in a rising mode maintaining a positive trend and with a breakout expected above Rs 715 zone would further strengthen the bias and would open the gates for fresh upside targets. With the RSI indicator positioned at an attractive has indicated strength and further rise is anticipated. With the chart looking good, we suggest to buy and accumulate this stock for an upside positional target of Rs 820-850 levels keeping the support near Rs 600 level.
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Ultratech Cement
Target: Rs 7,450-7,600
The stock has witnessed a decent erosion in recent times and currently with consolidation seen near Rs 6,100 zone the stock has shown signs of bottoming out near the trend line support zone on the daily chart, the bias has turned positive with anticipation for further upward move in the coming days. We anticipate a decent pullback to improve the trend as also indicated by the RSI indicator which has flattened out after the correction witnessed and is well placed with immense upside potential visible. Currently it has shown a reversal pattern and with the chart looking good, we suggest to buy and accumulate the stock for an upside target of Rs 7,450-7,600 keeping the stop loss of Rs 5,650.
