Planning to buy mid cap stocks to earn bumper returns but don’t know which ones to buy? Zee Business Managing Editor Anil Singhvi makes it easier for you by revealing top stock picks in mid-cap space that will give amazing returns. The three top buys are recommended with a short-term, positional and long-term investment view.
Analyst Shrikant Chauhan told Anil Singhvi that Insurance companies are likely to have a good run in the markets going forward, as a number of technical patterns are now coming in place.
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Stocks of ICICI Lombard and ICICI Prudential are having a good momentum. He however recommends a ‘Buy’ on HDFC Life on the basis of a long term peak. The stock has exhibited a bullish continuation pattern and has recovered well from the bottom. Moreover, the stock is trading at a low volume which is an indication that there are no selling positions on this stock at any level. The stock was trading around Rs 510 last week and today it has been trading around Rs 540, which is a significant movement, he said, adding that the stock may touch levels between Rs 620 and Rs 630. He puts the stop-loss at Rs 505.
For the medium term, Chauhan says construction sector is seeing action. He recommends a Buy on KNR Construction. This analyst puts the stop-loss at Rs 200 while expecting the target price to reach Rs 260-Rs 270. The stock is currently trading around Rs 220. The time frame is 2-3 months, he added.
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For the short-term, Chauhan said that the metal sector could likely be a good option. Stocks are available at cheaper valuations, he said. He recommends NMDC as his preferred stock. He further said that the stock has seen a ‘twist pattern’ where the price rose when the markets were down while they fell maximum when the markets rose. Stocks which experience twist patterns are likely to do well, he added. He puts the stop loss at Rs 85 with a target price of Rs 97-98. The stock is currently trading around Rs 89.