Indian equity markets have been buoyant over the last one year. Our picks from the last year performed exceptionally well. All of them hit their intended second targets and that too in span of few weeks. On aggregate last year’s four Samvat picks delivered an average of 22 percent return that too on an average period of 32 days.
We are recommending 6 technical picks on this auspicious occasion. Accumulate them in the indicated buying range for given targets for next one year.
Performance of Technical Picks Samvat 2077 | HDFC Securities
BPCL
After a sharp decline, the stock is currently holding above upward slopping trend line.
BPCL Weekly Chart | HDFC Securities
The Stock has taken a multiple supports in blue marked area. Traders can expect bounce from current blue marked level. Currently, the stock trading near lower level of Bollinger band suggesting bounce for the stock from the current level. The stock is also trading near 200 Days EMA suggesting bullishness in the stock. The monthly 14 period RSI has sustained above 40-45 levels and may gradually move up. Considering the Technical evidences discussed above, we recommend buying BPCL at CMP and average at 370, for the upside targets of 490 and 540, keeping a stop-loss at 335.
Federal Bank
Stock has provided a breakout on the monthly chart, which is a bullish development. It is continuously forming higher highs and higher lows on weekly chart which indicates continuation of an uptrend.
Federal Bank Monthly Chart | HDFC Securities
Price is trading above all key moving averages on both daily and weekly charts, which suggests that current momentum would continue in the coming days.
The monthly 14-period RSI has surpassed the level of 60, which indicates the sustained bullish trend. Stock price breakout is accompanied with higher volumes.
Considering the Technical evidences above, we recommend buying Federal Bank Ltd at CMP and average at 89, for the upside targets of 115 and 122, keeping a stop-loss at 82.60.
Garden Reach Shipbuilders & Engineers Ltd
The stock price was moving in a larger consolidation pattern in the last one year and witnessed a sharp upside breakout of the pattern at 211 in the mid part of the October.
GRSE Weekly Chart | HDFC Securities
After the upside breakout, the stock price has shifted into a consolidation movement in the last couple of weeks. The said range bound action/minor weakness of last two weeks has not changed the upside breakout status of this larger consolidation movement.
Volume expanded during upside breakout and the weekly 14 period RSI is placed around 60 levels. Weekly 14 period DMI/ADX also shows positive indication. Hence, one may expect resumption of upside momentum soon in the stock price. Positive technical evidences discussed above, we recommend buying GRSE at CMP and average at 200, for the upside targets of 258 and 285, keeping a stop-loss at 185.
Heritage Foods Ltd
Stock price has broken out from the symmetrical triangle on the monthly chart with higher volumes. Primary trend of the stock is positive where it is trading above its 5 and 20 month EMA.
Heritage Foods Monthly Chart | HDFC Securities
The monthly 14-period RSI is placed above 60 and sloping upwards, Indicating strength in the current uptrend. Plus DI is placed above Minus DI while ADX line is placed above 25 on the monthly chart, Indicating momentum in the current uptrend. Considering the Technical evidences discussed above, we recommend buying Heritage food Ltd at CMP and average at 470, for the upside targets of 605 and 670, keeping a stop-loss at 430.
Manappuram Finance Ltd
In the month of October 2021, the stock hit a fresh all time high of 210.90 with rising volumes. The stock has been forming higher tops and higher bottoms on weekly and monthly charts. Stock price has been holding above all important moving averages. Stock price has broken out from the ascending triangle on the monthly chart .
Manappuram Finance Monthly Chart | HDFC Securities
In July 2021, the stock registered multi month breakout with jump in volumes. However, post-breakout, the stock witnessed running correction towards 155 levels. In Oct 2021, the stock resumed the primary uptrend. • Indicators and oscillators like DMI and RSI have turned bullish on the monthly charts. Considering the technical evidences discussed above, we recommend buying Manappuram Finance at CMP and average it at 180, for the upside targets of 247 and 268, keeping a stop-loss at 170.
UPL Ltd
UPL is in strong uptrend on Major time frame. After making a life high on June 11, 2021, it started correcting and halted near 686 levels, which also coincides with Fibonacci retracement support (23.6%). The stock has also formed piercing candlestick pattern on the weekly chart after the healthy correction, indicating resumption of primary uptrend . It is continuously forming higher tops and higher bottom on weekly chart which is bullish continuation structure.
UPL Weekly Chart | HDFC Securities
The weekly 14 period RSI has turned up after taking support from 40 level which suggest stock is gaining bullish momentum. MACD line above zero line adds further confirmation of upside momentum. Considering the Technical evidences above, we recommend buying UPL Ltd at CMP and average at 670, for the upside targets of 851 and 910, keeping a stop-loss at 629.
