Diwali Investments: A Technical Analysis Of 5 Stocks To Buy; Axis Bank, DLF, Godrej In List

For Diwali 2023, Chola Securities has selected five stocks to buy from diverse segments with potential returns ranging from 25% to 35%. The brokerage has given a technical analysis of these stocks. They are, JMB Auto, DLF, Power Grid, Axis Bank, and Godrej Properties.

Diwali festival will kick start on November 10 and will continue till November 14, 2023. There will also be a one-hour auspicious Muhurat Trading held on November 12 on the day of Laxmi Pujan.

Here's what Chola Securities say about these 5 stocks:

1. JBM Auto:

JBM Auto has been forming higher highs & higher lows pattern on longer time frame; indicating an uptrend. In the medium term, there has been a formation of dragon fly doji candlestick. A reversal is on the cards and will be confirmed once when the price crosses the 20 WEMA (weekly exponential moving average) of 1250 level. Also, momentum indicators like RSI are building on strength.

Chola's note said, "Having regard to aforesaid triggers, our first Diwali pick is JBM Auto." Accordingly, the brokergae has initiated buy recommendation on the stock with stop loss of 1000 and a target price of 1670.

2, DLF:

DLF has witnessed good volumes during the period of 2020-2022. However, the stock was in consolidation phase for consecutive months. Post consolidating, DLF has given a breakout on long-term time frame indicating the price to move further upwards.

On medium-term time frame, the stock has been sustaining above all the moving averages since multi months; indicating strength. The brokerage has initiated buy recommendation on the stock with stop loss of Rs 460 and a target price of Rs 700.

3. Power Grid:

POWERGRID has been an in uptrend, since 2022 having price action which is continuously forming higher highs & higher lows pattern. On medium-term time frame, the stock witnessed a range breakout around 190 levels. Post the breakout, follow-up buying was witnessed with stable volumes; indicating strength.

Also, momentum indicators like RSI are indicating the uptrend to continue. The brokerage is initiating buy recommendation with stop loss of Rs 165 and a target price of Rs 270.

4. Axis Bank:

Axis bank has been in an uptrend forming higher lows & higher highs on mid and longterm time frames. The price has been sustaining above the moving averages since May 23. Additionally, volumes have been consistent; indicating strength. Also, momentum indicator like RSI is further building on strength; for new trending price up move.

On valuation, the brokerage provided buy recommendation with stop loss of Rs 850 and a target price of Rs 1300.

5. Godrej Properties:

Godrej properties is forming a reversal pattern post correcting 60% from ATH levels. Currently, the stock is consolidating with decent volumes. In its medium term time frame, the stock has been sustaining above the moving averages; indicating strength.

Both rising volumes and RSI indicating strength break out seems to be on cards. Accordingly, the brokerage initiated buy recommendation on the stock with stop loss of 1425 and a target price of 2150.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.