The Indian stock market finished lower on Friday after trading turbulent throughout the day. The Nifty 50 index fell 33 points to finish at 19,730, the BSE Sensex down 187 points to finish at 65,794, and the Nifty Bank index fell 577 points to finish at 43,583 levels. Broad market indices ended marginally higher, even though the advance decrease ratio, while still positive at 1.16:1, fell from the previous day. As a result, finding value options for stock investors has grown difficult, especially if they are looking for short-term stock picks.
To address this issue for stock market investors, Rakesh Bansal, Co-founder & Co-partner at Rakesh Bansal Ventures, has recommended two stocks for the short term: Indiabulls Housing Finance and Hindustan Unilever Ltd (HUL).
Monday's stocks to purchase
1] Indiabulls Housing Finance: Buy at the current market price, goal 190, objective 300, stop loss 160.
On the NSE, Indiabulls Housing Finance shares are now trading at 190 per share. Mortgage lender recorded a 3% increase in net profit to 298 crore in the July to September 2023 quarter year on year. However, the company's management stated during a conference call that they are in talks with corporate for funding. And this is the primary catalyst for the NBFC stock. In general, it has been discovered that a stock provides significant upside prior to being added on the F&O ban list.
After being removed from the F&O ban list, the stock had significant positive movement. Because Indiabulls Housing Finance shares have recently been removed from the F&O prohibition list, they may provide significant upside in the near future.
Those who own Indiabulls Housing Finance shares should keep their trailing stop loss at 160 for a near-term goal of 300 per share on the NSE. with new investors, Indiabulls Housing Finance shares can be purchased around 190 per share with a 300 objective in the short run. However, when entering a new position in this scrip, one must keep the stop loss at 160.
2] Hindustan Unilever Ltd. (HUL): Buy between 2525 and 2530, aim 2850, stop loss 2400.
In the stock market's resurgence following the massacre on Dalal Street in 2020, HUL was the first Indian stock to breach its pre-Covid levels. Shares of HUL were followed by those of Reliance. The FMCG stock has been trading sideways for about a year, with ITC shares leading the way.
However, the FMCG theme is predicted to work in the coming sessions since high interest rates have peaked and banking stocks (read private bank shares) are expected to produce modest returns in the short term.
According to the chart pattern, the HUL share price is bullish and may rise sharply in the short term. On the chart, the stock is approaching a resistance level at 2750. If this level is breached, the HUL share price is likely to reach 2850 in a relatively short period of time.
