Stocks that could give over 10% Return in next 3-4 weeks: Greenply Industries, Polycab & Indoco Remedies
Markets have been directionless in the recent past. For the last eight executive sessions, Nifty50 has been consolidating in a narrow range of 14296 to 14617.
However, looking at the short-term chart of BankNifty, it seems that banks could outperform in the days to come. BankNifty has confirmed the higher top and higher bottom formation on the daily chart.
Oscillators also indicate the dominance of BankNifty over Nifty. BankNifty has surpassed the previous swing closing high of 32,112 on the daily chart.
The Nifty has formed a strong base around 14150, which would act as strong support going forward. The immediate resistance for the index is seen at 14800 odd levels, above which, the momentum would be back in the hand of bulls for Nifty.
The Nifty Smallcap index has reached the highest level since 9 April 2021. Sectors that are looking strongest on short-term charts and are expected to outperform in the coming days are Banks, NBFC, PSU Bank, Infra, and Realty. These sectors could see a pullback rally in the days to come.
Nifty has been trading in a downward sloping channel on the weekly chart and any close above 14800 would result in a bullish breakout. A close below 14150 would result in a bearish breakout, which could drag the Nifty towards 13600 levels. Till this range gets broken, the stock and sector-specific moves would remain in the market.
Here is a list of recommendations for the next 3-4 weeks:
- Greenply Industries: Maintain: BuyLTP: Rs 207Target: Rs 240Stop-loss Rs 194Upside 16%
- Indoco Remedies: Maintain: BuyLTP: Rs 332Target: Rs 380Stop-loss Rs 305Upside 14%
- Polycab India: Maintain: BuyLTP: Rs 1476Target: Rs.1650 Stop-loss: Rs 1370Upside 12%
Although considering the scenario, one must carefully analyse the market and then invest. The second wave of Covid-19 has taken the economy down with it. Therefore, it might take time to recover and market to climb green.