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Diwali Pics: These 5 stocks are showing bullish signs on the technical chart

Highlights:

  • Moment Trading on 4th November from 6.15 PM to 7.15 PM
  • Technical chart showing growth in five famous stocks
  • Which stocks will be best for holding for 2 months to 1 year?

New Delhi: After reaching record highs, the stock market seems to be getting tired for a few days. However, now with Diwali approaching, traders are also locked in buying which stocks to buy in Murhat Trading. Notably, technical analysis by various brokerage firms has suggested a few names for those who believe in investing for the long term.

1. L&T. Holding period: 2-3 months

According to Motilal Oswal Securities, the stock has broken out of an inverted head and shoulders pattern on this weekly scale, which indicates a bullish trend in the coming days. It continues to scale highs in the weekly chart showing a positive structure. The brokerage firm believes that the stock may touch the Rs 2,200 level. In Teva, traders can take positions between Rs 1792-1760 with a stop loss of Rs 1600. Apart from this, he also says that L&T has seen call open interest of Rs 1900, which is also a positive thing. The short covering seen in the October series will push the stock even higher.

ITC. Holding period: 1 year

According to Anand Rathi, the stock, which has seen a significant correction in 2020, has managed to cross the 100-day EMA on a monthly basis. Apart from this, a trend line breakout has been observed which indicates another rally. It is showing a bullish pattern on the technical chart for the short term. In terms of the monthly RSI, it is poised to break the 60 level, which indicates further strength in the future. Investors or traders can buy it for up to one year. The brokerage firm recommends taking positions in the range of 250-240 and targeting Rs 290-335.

Canara Bank. Holding period not shown

According to Kotak Securities, the weekly chart of the stock indicates a bullish future. It is currently in a strong uptrend and will maintain positive momentum in the near future. If it does not break below Rs 160 level, traders can target Rs 240-260 in this stock. According to Kotak, at present new shares can be bought in the stock. Especially consider buying between Rs 170-201 and keep a stop loss of Rs 160. Investors can also plan to buy 50 per cent shares at Rs 201 and 50 per cent at Rs 170. Put a stop loss of Rs 160 in this stock for a target of Rs 240-260. It may find important support at 190, 183 and 170 levels in the near future.

Tech Mahindra. Holding period: 2-3 months

According to Motilal Oswal, the stock is showing positive signals on the technical chart. It recently saw a huge rally following the September quarter results, which may continue in the future as well. The brokerage firm believes that the stock may cross the Rs 1850 level. Its traders are advised to buy fresh shares in the range of 1517-1480 with a stop loss of Rs 1350.

LIC Housing Holding Period- 1 Year

The Rs 350 level has proved to be a strong demand point for this stock. According to Anand Rathi Financial Services, the stock is trading above the 100-day EMA and has also seen double bottom formation on a weekly scale. A rebound is also expected in the real estate sector, which can directly benefit the stock. The brokerage firm believes that this stock can be bought in the new range of Rs 450-430. The stock is likely to touch Rs 530 to Rs 620 in near future.

Disclaimer: The above information is for information only. The target prices are given by various brokerage firms which have nothing to do with IamGujarat.com. Be sure to consult your financial advisor before making any investment.

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