Diwali 2024 Stock Picks: Indian stock market benchmark indices, Sensex and Nifty 50, saw a short-covering rally on Friday after witnessing a sharp fall over the past three sessions. However, the benchmark Nifty 50 has rallied over 23% in the past 12 months.
Brokerage firm Anand Rathi has come out with its list of Diwali stock picks. Anand Rathi’s Diwali technical picks are designed to maximize the wealth over a period of one year (This Diwali to Next Diwali), based upon strong technical patterns from the universe of NSE F&O and cash counters.
The seven stock recommendations for the very auspicious occasion of Diwali are selected purely based upon Technical and Derivative parameters, considering the overall momentum in the market, said the brokerage firm.
The stocks to buy this Diwali 2024 include IFCI, IRB Infrastructure Developers, Jupiter Wagons, Hindustan Zinc, Tata Technologies, Garden Reach Shipbuilders & Engineers and BEML.
Here are Anand Rathi’s Diwali Stock Picks 2024:
After experiencing a significant 36% correction, IFCI shares have stabilized near the daily S4 camarilla pivot, aligning with the 200 days EMA (Exponential Moving Average). On the daily chart, IFCI stock has formed a bullish divergence, making it appear attractive for potential upside. Thus, investors or traders can accumulate IFCI stock with a time frame of around 1 year, Anand Rathi said.
The brokerage firm recommends entry point in the stock at ₹56 - 61 levels, with first target at ₹80 and second target at ₹88. Stop loss is recommended at ₹44 level.
For several months, IRB Infra stock has been forming a base just above the weekly Ichimoku Cloud, making the current levels appear attractive. The stock has corrected by approximately 30% from its peak of ₹78. Currently, it is showing signs of a rebound from its 200-day Exponential Moving Average (DEMA). From an indicator perspective, the weekly RSI has formed an impulsive structure ( V-shape) just shying away from 30 levels, while the monthly RSI remains between ₹70-65, both of which are positive indicators for the stock’s momentum.
Thus, Anand Rathi recommends to accumulate IRB Infrastructure Developers shares at around ₹55 - 60 levels, for a target of ₹79 - 86 and with a time frame of around 1 year. Stop loss should be at ₹43.
Jupiter Wagon stock has eroded around 40% of its price from the top of ₹746. At this juncture, the stock is turning from its 200 DEMA. In addition, there is a breakout from the falling trend line on the daily chart and the stock is very much near its previous demand zone, said the brokerage firm.
It recommends traders can accumulate the Jupiter Wagon shares in the entry range of ₹495 - 525, for a target range of ₹700 - 760 and with a stop loss at ₹390 level.
Hindustan Zinc stock found support at the placement of its 200 DEMA near ₹470 level and has been consolidating there since many weeks. We are witnessing multiple supports near ₹470 mark and right now the stock is on the verge of fresh breakout which would resume the uptrend, Anand Rathi said.
It recommends to accumulate Hindustan Zinc shares at an entry range of ₹480-520, with a time frame of around 1 year and target range of ₹680 - 750, keeping a stop loss at ₹380.
Tata Technologies stock witnessed a fresh breakout along with confirmation of a trend reversal. The stock has potential to retest its life high. It suggests accumulating Tata Technologies shares at ₹1,040 - 1,080 levels, keeping a stop loss at ₹865 and a target range of ₹1,360 - 1,450.
Garden Reach Shipbuilders stock has eroded around 45% of its price from the top. At this juncture, the stock is turning from its 200 DEMA and 61.8% retracement level. In addition, the stock is about to confirm a change of trend by making higher top and higher bottom formation.
Anand Rathi suggests accumulating Garden Reach Shipbuilders & Engineers shares around ₹1,700 - 1,780 levels, for a target range of ₹2,425 - 2,650, with a stop loss at ₹1,300.
BEML stock price is turning from its 50 WEMA and 200 DEMA. In addition, there is a breakout from the falling trend line on the daily chart and the stock is very much near its previous demand zone.
Traders can accumulate BEML shares around ₹3,700 - 3,900, for a target price range of ₹4,800 - 5,400, with a stop loss at ₹2,975, Anand Rathi said.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
