India Cements and Canara Bank among top trading bets for short term. Here’s why

Market


After closing in the red for three consecutive days, the Indian benchmark indices saw some gains on November 22 tracking the recovery in global market. The Sensex gained 274 points, or 0.45%, to 61,419, while the Nifty50 rose 84 points, or 0.46%, at 18,244.

The global investors are watching out for Covid-induced curbs in China and the looming minutes from the US Federal Reserve’s last policy meeting, which will be released on Wednesday.

Here are top 3 technical picks by Vaishali Parekh, Vice President – Technical Research of Prabhudas Lilladher with an investment horizon of 60 days:

GNFC

CMP: 591, Target: 665, Stop Loss: 560

The stock, after a decent correction recently, has bottomed out now near the 550 zone and has indicated a pullback. With immense upside potential witnessed, the stock is anticipated to rise further with good volume participation. Alongwith the technical chart looking attractive, the RSI (Relative Strength Index) indicator, which is currently well placed, has indicated a trend reversal from the highly oversold zone to signal a buy. We recommend a buy in this stock for an upside target of 665 keeping a stop loss of 560.

INDIA CEMENTS

CMP 238, Target 270, Stop Loss 225

The stock has bottomed out and has consolidated near 224 levels. It has now picked up momentum with a positive bullish candle pattern to improve the bias. The RSI is also well placed and indicated a trend reversal from the oversold zone to signal a buy. We suggest to buy and accumulate this stock for an upside target of 270 keeping the stop loss of 225.

CANARA BANK

CMP 318, Target 353, Stop Loss 303

The stock, after a short correction, has formed a flag pattern on the daily chart and currently with a bullish flag pattern breakout a further rise is anticipated in the coming days with indicators all well placed and going strong. The RSI indicator also has regained strength and can carry on the with a positive move. With the chart looking attractive, and with upside potential visible, we suggest to buy and accumulate this stock for a positional target of 353 levels keeping the stop loss of 303 level.

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