3 Stocks Given A ‘Buy' By HDFC Securities For Gains Of Up To 22% In Near Term

Indices in trade today continue to be buoyant on positive global cues and have hit fresh highs on both the headline indices. Bank Nifty also continues to see upward traction and was last up by 0.75%. As the momentum looks good, HDFC Securities as part of its positional picks has recommended these 3 picks for short term and gains up to 22%.

1. Jubilant Ingrevia:

Research backed HDFC Securities is bullish on the scrip of life science products and innovative solutions company, Jubilant Ingrevia. The brokerage sets a target price of Rs. 950, implying gains of 21.73% from the current market price of Rs. 780.4 per share.

Technical indicators point to strength in current uptrend

The stock has broken out on the daily charts with higher volumes, views the brokerage firm. On the daily and weekly chart, the stock is forming bullish higher top higher bottom formation on. Short term trend of the Stock is positive where it is trading above its 5 and 20 day EMA.

RSI oscillator is placed above 60 and rising upwards that suggest strength in the current uptrend. Plus, DI is trading above -DI while ADX line is placed above 25, Indicating momentum in the current uptrend. In view of the listed technicals, HDFC Securities recommend buying Jubilant Ingrevia at CMP of 763 and average at 725 for the upside targets of 858 and 950, keeping a stop-loss at 690.

2. Polyplex Corporation:

The company has been given a target price of Rs. 1990, from the current market price of Rs. 1795.6 that means potential gains of 10.83 percent.

Polyplex is the fifth largest capacity of polyester film globally. The company's produce includes both thin as well as thick PET film in varied thickness as well as surface properties.

Technicals

-The stock is showing bullish higher top higher bottom formation on the weekly chart

- Short term trend also looks good where it is trading above its 5,20 and 50-day EMA.
- Oscillators like RSI and MFI is placed above 60 and rising upwards, Indicating strength in the current uptrend.
- Plus, DI is trading above -DI while ADX line is placed above 25, Indicating momentum in the current uptrend.
- So, given the technicals listed out above the stock recommnends a 'Buy' on
Polyplex at CMP of 1623 and average at 1510 for the upside targets of 1805 and 1990, keeping a stop-loss at 1450.

3. BEML Ltd:

HDFC Securities is bullish on the defence PSU firm for a target price of Rs. 1624, implying gains of as much as 9.64% from the price level of Rs. 1481.

BEML is the largest defence, mining and construction and rail coach manufacturer in India.

Technical observations

The stock hit a 52-week high on March 9 and since then was in a correction mode and stopped near Rs. 1119 levels which also coincide with bullish trend level. Ob Monday, the stock broke from its consolidation phase with volumes.

"It also took multiple support of bullish trend line and resumed its upward momentum along with huge volumes. RSI 14 on the Weekly and Daily time frame has taken support of 60 level and now moving higher. +DMI & ADX is well placed above 25 level is observed on the weekly chart which indicates that bulls are in control. Primary trend of the stock has been bullish as stock has been forming higher tops and higher bottoms on the weekly charts. Stock is placed above medium to long term moving averages, indicating bullish trend on all time frames", adds the brokerage firm.

Disclaimer:

The scrips listed out here are from the brokerage report of HDFC Securities and are not a solicitation to 'buy' in these share. Please consult a professional advisor before making any stock market bets.

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