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Hot Stocks: Here's why Balaji Amines, SAIL, Avanti Feeds may deliver healthy returns

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Most private banking stocks remain strong forming higher highs and higher lows, which could lead Bank Nifty to make new all-time highs in the coming weeks.

Om Mehra

April 24, 2024 / 05:47 AM IST

Hot Stocks

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The Nifty kept up its bullish momentum, edging up 0.14 percent to close at 22,368 on April 23. After a decent correction last week, the benchmark index has formed a double bottom pattern on the weekly chart and has shown a decent surge this week, supported by most sectors, including midcap and smallcap stocks.

The India VIX, the domestic gauge for volatility, has dipped nearly 20 percent and slipped below 10, which provided comfort to bulls. However, an excessive drop in volatility hints that the market could react promptly to any leads from the global market or ongoing Q4 results.

Bank Nifty was higher by 0.10 percent to close at 47,970.45, as the primary trend remains strong. The index is holding above all the short-term moving averages. Unless it closes below 47,400, it is likely to rise steadily.

The Nifty PSU Bank Index has regained its rally and seems on course to retest its previous high of 7,419. Most private banking stocks remain strong, forming higher highs and higher lows, which could lead Bank Nifty to make new all-time highs in the coming weeks.

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

Steel Authority of India: Buy | LTP: Rs 152 | Stop-Loss: Rs 144 | Target: Rs 166 | Return: 9 percent

The stock of SAIL experienced a correction from its peak and has established strong support at the 38.2 percent Fibonacci retracement level. The relative strength index (RSI) has stabilized, holding above the 60 level. Additionally, the stock continued to trade above the 50-day daily moving average (DMA).

Hence, based on the above technical structure, one can initiate a long position at CMP Rs 152 for a target price of Rs 166. The stop-loss can be kept at Rs 144.

Avanti Feeds: Buy | LTP: Rs 525 | Stop-Loss: Rs 498 | Target: Rs 580 | Return: 10 percent

The stock is showing a strong recovery following a double-bottom formation. It is currently trading above the 50 DMA, indicating that bullish momentum is intact.

On the daily chart, volume is increasing along with the price rise. Furthermore, a Flag pattern, considered bullish, is evident on the daily chart.

Hence, based on the above technical structure, one can initiate a long position at CMP Rs 525 for a target price of Rs 580. The stop-loss can be kept at Rs 498.

Balaji Amines: Buy | LTP: Rs 2,228 | Stop-Loss: Rs 2,120 | Target: Rs 2,450 | Return: 10 percent

The stock has recently experienced a period of consolidation lasting several weeks. However, it is now showing renewed momentum, building a strong base in a larger time frame, and trading above the 50 DMA, indicating robust price action strength.

Moreover, there's a positive crossover in MACD (moving average convergence divergence, and the RSI stands at 53 levels. If the stock surpasses the Rs 2,260 level, it may potentially trigger a breakout.

Hence, based on the above technical structure, one can initiate a long position at CMP Rs 2,228 for a target price of Rs 2,450. The stop-loss can be kept at Rs 2,120.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Om Mehra is the Technical Analyst at SAMCO Securities. He has 5 years of experience as a technical analyst and derivatives analyst. He has completed MBA (Finance), and PG Diploma from Indian Laws Institute (New Delhi)

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