Hot Stocks For Short Term | Here Is Why You Should Buy Gujarat Gas, Avanti Feeds, TCS For 10-19% Return

Vidnyan Sawant, AVP – Technical Research, at GEPL Capital

The Nifty50 has been creating lower top lower bottom shape for the last six weeks, and it has been below its 20-week SMA (simple moving average) of 17,185 for the past four weeks, indicating pessimistic sentiment.

Since the previous five days, the index has met firm resistance near 16,500 levels on the daily charts, signalling a bearish market tone.

On the indicator front, the RSI (relative strength index) exhibited on weekly charts is maintaining a reading below 40, indicating bearish momentum.

The Nifty has immediate opposition at 16,500 and 17,000, with 17,251 being the next level of resistance. The index’s downside support is located around 15,671, followed by 15,450.

The Nifty appears to be in negative territory. If the Nifty falls below 15,671, it will head below 15,450 in the next days. If it stays over 17,251, our negative thesis will be invalidated.

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Here are three buy calls for next 2-3 weeks:

Gujarat Gas: Buy | LTP: Rs 566.95 | Stop-Loss: Rs 522 | Target: Rs 626 | Return: 10 percent

On the weekly charts, Gujarat Gas is trading at a 9-week high and forming a higher top higher bottom formation. The stock has outpaced the market significantly.

Every time the stock price rose, the volume increased, indicating that the stock had a positive undertone. On the daily charts, the stock has broken out of a horizontal channel formation and has maintained above the 50-day simple moving average (Rs 517), suggesting bullish strength.

On the indicator front, the RSI on the daily time frame has remained above 60, indicating a rising positive momentum in the prices.

Going forward, we predict prices to rise to Rs 594, after which we may see a move to Rs 626. On a daily closing basis, we propose a stop-loss of Rs 522.

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TCS: Buy | LTP: Rs 3,408.65 | Stop-Loss: Rs 3,350 | Target: Rs 3,835 | Return: 13 percent

With the creation of a Doji candlestick pattern, TCS is surviving within the important support zone of Rs 3,380 – 3,350 levels. Also, around Rs 3,380, the stock is generating a CIP pattern (Change in Polarity), suggesting that the bottom formation process is underway. At this time, the stock has a favourable risk-reward ratio.

On the indicator front, the RSI on the daily chart is showing a bullish divergence in the oversold area.

Prices might rise to Rs 3,676 in the coming months. If prices can stay above Rs 3,676, we might see a rise up to Rs 3,835 in the near future. On a daily closing basis, we propose a strict stop-loss of Rs 3,350.

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Avanti Feeds: Buy | LTP: Rs 456.35 | Stop-Loss: Rs 410 | Target: Rs 542 | Return: 19 percent

With the creation of a Double Bottom pattern on the weekly charts, Avanti Feeds is gaining significant support near Rs 400 levels. The stock is holding above its previous week’s high, indicating early bullishness. The stock has created a Big Bullish candle on the daily chart, surpassing the overall market.

On the weekly charts, the RSI indicator is advancing upward from the oversold zone, maintaining above the 40 mark with the development of higher lows, signalling strong stock momentum.

The stock is expected to rise towards Rs 500. If it succeeds to break through Rs 500, it will eventually advance into Rs 542 levels. For this trade, a strict stop-loss of Rs 410 should be maintained on a daily closing basis.

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Disclaimer :- The views and recommendations made above are those of individual analysts or broking companies, and not of Ours.
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