Tech picks: HCL Tech, Saregama among 5 stocks to buy for up to 11% returns in short term
Markets staged a recovery during last week, supported by encouraging corporate earnings and renewed buying interest in heavyweight stocks. In the upcoming week, markets will remain focused on the September-quarter earnings season, key economic data releases and global developments in the coming week. Investors will assess corporate performance for signs of sustained revenue growth, margin resilience and improving demand.
HCL Tech has signaled a potential trend reversal, indicated by a consolidation breakout on its Daily charts. A golden crossover of its 20EMA, above its 200 DSMA, indicates strong tailwinds of momentum in the short term. At the same time, a super pattern bullish breakout on its Point and figure chart, potentially underscore the bullish undertone. On its smaller time frame 0.5% Renko charts, the stock has triggered a bullish swing breakout, offering a risk adjusted opportunity in a sharply trending stock.
Hitesh Rathi, Technical Analyst - Equity & Derivatives, Angel One
Samavardhana Motherson has a confluence of support at the Rs 150-148 band, marked by the lows of a bullish anchor column on its P&F charts, and a prior price breakout on its Candlestick charts. This presence of demand in this zone is validated by the multiple bullish formations from the same price zone, like the bullish 100% pole and weak breakout, indicating that strong demand continues to remain present at lower levels.
Hitesh Rathi, Technical Analyst - Equity & Derivatives, Angel One
A bearish crossover of the 20 DEMA, over its 200 DSMA, following a bearish crossover of the 20 EMA, below its 50 EMA, has made the short-term trend convincing bearish. A follow through Double bottom sell, of a bearish anchor column, indicates a potential resumption of the bearish trend.
Hitesh Rathi, Technical Analyst - Equity & Derivatives, Angel One
Alivus is showing signs of a recovery after breaking out of a Falling Channel pattern on the daily chart, with rising trading volumes supporting the move. The breakout suggests that buying interest is picking up and the stock may be moving into a stronger phase. The price is also sustaining and closing above both the 21-Day and 50-Day EMAs, indicating an improvement in the short-term trend.
TVS Motor at Rs 4,240 | Stop Loss: Rs 4,030 | Target: Rs 4,660 | Returns: 10%
TVS Motor Company has gained strength on the daily chart after breaking and closing above its key resistance level of Rs 4,138, with volume supporting the breakout. The move indicates fresh buying interest and suggests that the stock could be gearing up for another upward leg. The Bollinger Bands have also shown a squeeze breakout, with the price moving above the upper band, signaling expanding volatility and strong price momentum.
Saregama India is showing a positive change in its price movement after breaking out of a sideways consolidation range on the daily chart. The breakout, accompanied by increasing trading volume, suggests that buying interest is improving and the stock is gaining strength after a period of limited movement. The Bollinger Bands have also formed a squeeze breakout, with the price moving above the upper band. This indicates expanding volatility and supports the possibility of a continued upward move.
Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here.