Stocks to Buy Before Diwali 2021

Stocks to Buy Before Diwali 2021

State Bank of India (SBIN)

CMP: 512 (As on 01:00 PM 28-10-2021)

Buying Range : 503-490

SL: 450

Target : 600

Upside: 19%

Rollover has been intact at 93% from the last 2 months which indicates longs are upright in the stock with more than 10% price increase in the October series. Good PSU bank to buy and hold for long term also.

Conclusion: 

• SBI is trading above triangle breakout zone. taking support at 100 DMA.
• It is sustaining above the breakout zone and started the next leg on the upside indicating strength
• RSI oscillator is placed in the bullish zone which will support the up move.
• Short term and long term chats looks strong.
• Considering the current chart structure, we expect the stock to inch higher towards 600 levels
• Hence we advise to buy the stock in the range of 503-490 with a stop loss of 450

Larson & Tubro (LT)

CMP: 1831 (As on 01:00 PM 28-10-2021)

Buying Range : 1800-1760

SL: 1600

Target : 2200

Upside: 23%

Maximum Call OI is seen at 1900 and highest Call writers unwinding in this strike

is making it a comfortable upside. Short covering seen in the October series so

far will drive the stock to higher zones.

Conclusion:

• L&T has given a breakout of the Inverse Head and Shoulder pattern on the weekly scale which has bullish implication
• It is continuously forming higher-highs and higher-lows on the weekly charts indicating positive structure
• RSI oscillator is positively placed indicating strength in the counter for higher level
• Considering the current chart structure, we expect the stock to inch higher towards 2200 levels
• Hence we advise to buy the stock in the range of 1792-1760 with a stop loss of 1600

BATA India (BATAINDIA)

CMP: 1959 (As on 01:00 PM 28-10-2021)

Buying Range : 2022-1980

SL: 1800

Target : 2450

Upside: 21%

Short covering is seen with increase in price by almost 18% in the October series

and increase in implied volatility indicating bulls to be in action.

Conclusion:

• Bata India has given a strong breakout on the weekly charts
• The stock is tagging the upper Bollinger band which indicates strength in the counter
• RSI oscillator on the daily, weekly and monthly charts are positively placed which will take prices higher
• Considering the current chart structure, we expect the stock to continue to its up move towards 2450 levels
• Hence we advise to buy the stock in the range of 2022-1980 with a stop loss of 1800

Tech Mahindra (TECHM)

CMP: 1530(As on 01:00 PM 28-10-2021)

Buying Range : 1517-1480

SL: 1350

Target : 1850

Upside: 22%

OI shedding by almost 9% with increase in price which suggests shorts are covering their position and rollover of 97% in the previous series indicating positive sentiment and strong hands in the counter.

Conclusion:

• TechM has formed a strong base near 50 EMA after a long consolidation on the daily scale which is a positive sign
• It has given a fresh breakout on the daily charts indicating buying interest in the counter
• RSI oscillator on all the time frames are well placed in the bullish territory which indicates strong momentum to continue
• Considering the current chart structure, we expect the stock to inch higher towards 1850 levels
• Hence we advise to buy the stock in the range of 1517-1480 with a stop loss of 1350

Disclaimer : Above stocks are suggested based on internal study. One can look to buy these stocks after analyzing risk and by taking advice form their financial advisor. 

Happy Profitable Diwali

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