Are you wandering here and there to find out what are the best stocks to buy in India for the short-term 2021? Well, we got your back for that. With the strong research skills, our technical analyst Mr. Karan Pai has picked the Top 5 Stocks that would be the best stocks to buy today in India for the short term. And, good thing is that these stocks may give you up to 22% return on your short-term investment. This is a glance at our weekly contribution to money control for the hot stocks.
Before stocks buy for the short term let's take a look at the market fluctuation.
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Before jumping into stocks to invest for the short term let's understand the market fluctuation during the week.
On the option open interest front (30th September 2021 expiry), the 17800 Call options have the most open interest addition, while the 17000 and 16800 put options have the most open interest addition, implying that the index's broader range will be 16800-17800 in the weeks ahead.
On the indicator front, the RSI shown on the weekly time frame is still above 50 and moving higher, indicating that the bulls are attempting to keep the index under their control.
To summarise, the NIFTY is developing a higher high, higher low pattern and is testing new lifetime highs successfully. The positive momentum is expected to continue, pushing prices higher into the 17812 levels (1.27 percent extension level of the rise from 14151-15915 projected from 15513 marks) If prices manage to break through the 17812 levels, we may see a move higher towards the 18011 levels (1.38 percent extension level of the rise from 14151-15915 projected from 15513 marks).
Going forward, the psychological level of 17000 will operate as a major support level; if prices break below this level, our optimistic outlook will be shattered, and we may see prices drop to the 16764 levels.
HDFC BANK: - CMP:- 1576 Upside potential of about 9%
Since June 2020, HDFCBANK has been building a higher high higher low pattern on the monthly time frame, showing that the stock's long-term trend is strong. After testing a high of 1641 on February 15, 2021, prices on the weekly time period began to consolidate.
Prices attempted to break above the top range of the consolidation a few weeks ago but failed to do so on a closing basis. During the previous week, prices gained traction and managed to break and close above the consolidation'supper zone.
Prices attempted to break above the top range of the consolidation a few weeks ago but failed to do so on a closing basis. During the previous week, prices gained traction and managed to break and close above the consolidation' supper zone.
On the indicator front, the RSI can be seen charted on the daily and weekly time frames above 50, and it now appears to be going higher, indicating that the bulls have taken control of the trend.
1641-1661 (previous swing high and 50 percent extension level of the climb from 1025-1641 projected from 1353), followed by 1733, are major resistance levels to watch out for in the future (61.8 percent extension level of the rise from 1025-1641 projected from 1353). The 1500 multiple touchpoint level, followed by 1480, will operate as a red flag level (20-week SMA).
On the medium-term charts, HDFCBANK appears to be breaking out of a consolidation. This upward movement is accompanied by increasing volume, indicating that the breakout was well-attended.
The technical criteria listed above point to prices rising higher towards 1641-1661 in the near future; if prices breakthrough 1661, we may see prices move higher towards 1733. If prices fall below 1530, our bullish outlook will be shattered. If prices remain below 1530, we might expect a further drop below 1470.
ESCORTS:- CMP: 1383.25 Upside potential of about 12%
Since April 2020, ESCORTS have been trending higher on a monthly basis. Prices rose from 526 to 1468 as a result of this upward movement.
After testing the high of 1468 on the weekly time frame, we can observe that prices had entered a consolidation. The stock's wider range has been 1095-1251.
Prices came out of the consolidation with the strong volume on August 23, 2021, and prices breached above the high-volume candle in today's session. This upward trend was also accompanied by the largest volume in the previous six sessions, indicating that the trend was being followed.
In terms of indicators, the RSI on the weekly time frame has been lingering around 50 for the previous few weeks. It moved to approach the overbought level on September 6th, signaling that the bulls are gaining control of the trend. Going forward, 1468 (previous swing high) will operate as a make-or-break level; if prices can break through this level, we might see a move towards 1571 (50 percent extension level of the gain from 526-1468 forecast from 1100) and 1682. (61.8 percent extension level of the rise from 526-1468 projected from 1100).
1300 (20 Day SMA) will operate as a red flag level; if prices break below this level, our bullish outlook will be shattered, and we may see prices fall below 1250. (Breakout level).
On the long-term charts, ESCORTS appears to be in a bullish phase, and on the medium-term charts, prices have broken out of a consolidation zone.
The technical factors indicated above hint at the probability of quick price movement upward towards the 1468 mark; if prices break this level, prices may gradually go higher towards the 1571 and 1682 levels.
Our bullish view will be negated if the prices breach below the 1300 mark. If the prices sustain below the 1300 mark, we can see further downfall towards the 1250 level.
HDFCAMC: - CMP: 3267 upside potential of about 14% from the current level.
After a nice up move from 2070, HDFCAMC has been moving in a range for the past 9 months on the monthly time period. On the weekly time scale, prices have been forming a rounding bottom pattern near the 50% retracement level of the rally from 2070 to 3358.
Prices gained impetus on September 8, 2021, and broke beyond the previous swing high of 3289, but failed to close above it. This uptrend was accompanied by a strong volume buildup, showing that the uptrend was well-supported. On the indicator front, the RSI is above 50 on the weekly and daily time frames, and it is now trending higher towards the overbought level, indicating the presence of positive momentum in the prices.
The 3496 (61.8 percent extension level of the climb from 2070-3358 forecast from 2714) will operate as a barrier continuing forward; if prices can go over this level, we might see a move towards 3712. (78.6 percent extension level of the rise from 1623-2896 projected from 2354). The 3200 (Multiple TouchPoint Level) will operate as a red flag level; if the prices break below this level, our bullish outlook will be shattered, and the prices may fall to 3047. (Multiple touchpoint level).
The 3496 (61.8 percent extension level of the climb from 2070 to 3358 projected from 2714) will act as a hurdle going forward; if prices can break over this level, we might see a move to 3712. (The climb from 1623 to 2896 is anticipated to extend by 78.6% from 2354)
Our bullish outlook will be shattered if prices break below the 3200 (Multiple TouchPoint Level); if prices break below this level, prices may fall to 3047. (At the level of several touchpoints).
Reliance: CMP:- 687.55
RELIANCE has been in a strong uptrend since April 2020. A simple bar chart analysis of the monthly time frame chart will suggest that the stock is in a long-term bullish trend.
The prices have been moving in a ‘Horizontal Channel pattern’ for the past 1 year after it made a record high at 2369 mark. In the last week, the stock gained momentum and made a Fresh Lifetime High at 2395 levels, and it has sustained and closed above its previous record high of 2369 mark which shows a strong bullish undertone of the stock for the medium to long term.
On the shorter time frame, we can see that the prices have moved up sharply after taking strong support at 200 Day SMA and it has given a breakout of Inverted Head & Shoulder pattern, pointing towards the presence of bullishness in the short to medium term.
On the indicator front, the RSI plotted on the daily and the weekly charts can be seen placed above the 60 marks and moving higher, Currently, the RSI on the weekly time frame can be seen moving towards an upward level after bouncing off the 55 marks, indicating the presence of strong momentum in the up move.
Going ahead the 2582 (50% extension level of the rise from 864-2369 projected from 1830) will act as a resistance level, if the prices sustain above this level, we can see the prices move higher and test the 2900 (Potential Target of Horizontal Channel pattern).
The key level to watch for on the downside is 2236 (Week Low) followed by 2102 (20 Week SMA).
DALBHARAT:- CMP 2297
On the monthly time frame, we can see that DALBHARAT has been in a strong uptrend since May 2020. This up move took the prices from 402 to 2375 levels.
On the weekly chart, we can see that the prices entered a corrective phase after testing a high of 2375. this correction went on for 3 weeks until prices found support near the 1836 mark (the 20-week SMA). After testing this level, the prices resumed their up move and can be seen forming a higher top higher bottom pattern for the past 3 weeks.
The Bollinger Bands plotted on the daily time frame can be seen expanding as the prices move higher, indicating expanding volatility as the prices move higher.
On the indicator front, the RSI plotted on the daily and weekly chart can be seen placed above the 60 mark, currently, it can be seen moving higher as the prices rise indicating that the bulls are in control of the trend. Looking at the price action we believe that this stock is a perfect BUY candidate, going ahead we can expect the prices to move higher towards 2383 levels (previous swing high), if the prices manage to move above this level, we can expect the prices to move higher and test the 2590 (38.2% extension of the rise from 402-2375 projected from 1836) and eventually move towards 2822 mark (50% extension of the rise from 402-2375 projected from 1836).
The key support level for the stock is placed at 1984 (Multiple touchpoint level), if the prices managed to breach below this level, we can expect a further down move towards the 1902 mark (20 Week SMA and multiple touchpoint level).
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