The Indian share market started the proceedings with a good bump-up on Monday, owing to favorable global cues. However, this was short-lived as the market witnessed a gradual profit-booking thereafter.
Until Thursday’s first half, the index kept on moving rapidly in a very small range but post the Supreme Court’s decision of postponement of the verdict concerning the adjusted gross revenue (AGR) dues, markets joined hands with global peers. And as they were trading deeply in the red, the Nifty breached the support of 10,000. But things worsened when the US markets plunged more than 5 percent on Thursday. A massive gap-down opening in our markets was caused because of this on Friday. Fortunately, our markets saw a V-shaped recovery throughout the remaining part to conclude the day marginally in the green and thereby restricting weekly losses to a couple of percentages.
The following are the two stock recommendations made by Angel Broking:
- Shriram Transport Finance
NSE script code: SHRIRAM TRANS FIN
View: Bullish
Last close: ₹684.40
Shriram has been one of the laggards over the past few months. Shriram has not participated at all in the overall recovery the markets saw from March lows. But from the last couple of days, most of the underperforming NBFC and Mid-cap private banking companies started to show some growth. Despite weak quarterly numbers, stock prices stood firm on Thursday and a massive surge was seen on Friday when markets started recovering from lower levels. Shriram has already confirmed a breakout on the daily chart and the way its positioned, good moves can be seen in this high beta name. Importantly, the volume of activity has improved drastically in the last couple of days, providing confidence to the move. Angel broking recommends this stock for a target of ₹734 – ₹752 in the coming weeks. Traders can keep their stop losses at ₹658.
2. Mahanagar Gas
NSE script code: MGL
View: Bullish
Last close: ₹1074.20
Recently, all the Gas distribution companies have been in limelight and MGL being the Futures and Option component, it remains the preferred stock by Angel Broking in this segment. Stock prices confirmed a price-volume breakout from a cluster of hurdles last week. This was followed by consolidation for some days and now post MGLs quarterly numbers, the stock seems to have picked up its momentum again. The daily, as well as the weekly chart, looks extremely promising and therefore a continuation of the ongoing momentum in the stock is expected by Angel Broking. One can look to go long at current levels for a target of ₹1,124 – ₹1,150 over the next 14 sessions. The stop loss should be fixed at ₹1,018 as per the brokerage firm.
