National brokerage and research firm HDFC Securities has shared two stock picks – Mahindra Logistics and UTI AMC, which investors can look to buy with a time horizon of up to three months.
HDFC Securities’ Top Stock Picks –
Mahindra Logistics: “February’s strong downtrend seems to have ended on this logistic stock. The stock price is currently showing a broader consolidation pattern as per the weekly chart and is placed at the crucial support of ₹407, under the concept of polarity shift,” the brokerage said in a note.
Based on technical factors, the brokerage’s buy rating on Mahindra Logistics shares with targets of ₹465/502 with stop loss of ₹401 with a delay of up to three months.
“All of these patterns signal a possible reversal in the stock price at ₹395 levels. The weekly 14-period RSI has fallen from near its oversold region of 25 levels and is expected to break above the crucial 40 levels. This pattern signals a possibility of further upside momentum in the stock price going forward.
UTI AMC: The stock price has exploded since the consolidation of the last 5 sessions. The breakout in prices is accompanied by a jump in volumes. On Feb. 28, 2022, shares jumped more than 5% with a significant increase in volumes, HDFC Securities pointed out.
“A positive Relative Strength Index (RSI) divergence was seen on the daily charts. The stock broke above the crucial 20-day EMA resistance. Indicators such as DMI and MACD showed strength in the upside move current,” he suggested. The brokerage’s buy rating on UTI AMC stock comes with a target price of ₹997 and stop the loss of ₹795 each.
The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.
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