5 Stocks To Buy That Can Offer Double Digit Returns In The Short Term

Indian markets are largely trading flat with Nifty at 17580 given the weak global cues as worries about an economic slowdown and tighter monetary policy weighed on sentiments. Nevertheless, there is seen enough of stock-specific action and likewise, here below are given few stock recommendations by different brokerage houses for decent double digit gains in the short term.

Happiest Minds| Buy| Target price- Rs.1180| Horizon- 3 months| Stop loss- Rs. 954

On the small cap software and consulting entity, HDFC Securities has suggested a 'Buy'. The brokerage on the stock says that the price breakout is accompanied with significant jump in volumes. Stock is trading above its 20, 50, 100 and 200 DMA, indicating uptrend on all time frames Indicator and oscillators like RSI, DMI and MACD have been showing strength in the current uptrend Higher top and higher bottom formation is seen on the daily chart.

 

Hindalco| Buy| Target price- Rs. 485, Horizon:3 months| Stop loss- Rs. 383

ICICI Direct has recommended the stock as its Quant Pick and in its report says, "in the current profit taking leg select metal stocks are showing significant resilience and are likely to resume their uptrend. We believe stocks like Hindalco will show relative outperformance and move towards Rs. 485 in coming sessions".

"Leveraged position in the the stock have declined noticeably in the last couple of months as the stock witnesses a short covering trend. The current open interest in the stock is one of the lowest seen in many years near 2 crore shares while the stock has shown a tendency of up move with long accumulation whenever open interest moved to such lows. We have seen initial signs of fresh long additions in the stock, suggesting further upsides on the back of fresh accumulation", adds the brokerage.

Hindalco is a large cap aluminum rolling company. The Company is a producer of aluminum and copper.

Safari Industries: Buy| Target price: Rs. 1850| Potential Upside: 37%

On this luggage scrip, Monarch Capital has raised its fair value or target price to Rs. 1850. This implies an aggressive upside from current levels. The brokerage in its report says that "Safari Industries' current quarter was the best the company has ever reported both in terms of revenue and profitability. Growth was driven by a robust uptick in hard luggage as we continue to see the transformation from unorganized to organized segment, which given Safari's positioning is the biggest beneficiary. It is carrying on the momentum of an insignificant player in 2012 growing by leaps and bound over the years. With a focus now on in-house manufacturing and softening
of RMAT prices (peak in Q4FY22), we believe the company is exceptionally well poised to reap the benefits of exuberance in the luggage industry".

Action Construction: Buy| Target Price: 282 | Stop loss: Rs. 217

ICICI Direct has recommended this capital goods stock as its Gladiator stock pick. "Within construction space, Action Construction's share price has undergone solid base formation since November 2021 and is now seen breaking past this range indicating conclusion of corrective phase and offering re-entry opportunity. The stock witnessed consolidation in the Rs. 200-240 range, which is anchored on long term 52 week EMA that has been held since mid-2020 o We expect the stock to resume its up trend and head towards its 52-week high. On oscillator front, weekly RSI is in rising trajectory rebounding taking support at its nine period's average, thus validating the positive bias", notes the brokerages.

Apollo Tyres: Buy| Target price: 285| Stop loss: Rs. 227| Duration: 3 months

ICICI Direct on the small cap Tyre company says that "within the tyre companies Apollo Tyre is our top pick as it has recently generated a resolute breakout above the long term supply line joining the highs CY18 (Rs. 307) and CY21 (Rs. 261) with strong volume of more than double of its 50-week average volume signalling a structural turnaround and offers fresh entry opportunity. Key observations is that the stock has witnessed a faster retracement of the 16 months decline (Rs. 261-167) in just two months. A faster retracement in one fourth of the time interval signals strength and a robust price structure. We expect the stock to continue with its current up move and head towards Rs. 285 levels in coming months as it is the 123.6% external retracement of the entire preceding decline of the last 16 months".

 

Disclaimer

The above stock recommendations are take from various brokerages. Individual should not construe the report as an investment advice into the above stocks and should indeed carry out their own due diligence before betting on any market linked security.