As the Indian equity markets look towards Samvat 2083, Axis Securities has presented its 'Diwali Muhurat' stock picks, identifying 12 companies with significant growth potential. Despite Samvat 2082 posing challenges like geopolitical tensions and rising crude oil prices, strong domestic institutional inflows provided crucial support. The outlook for the new year is more optimistic, driven by resilient economic growth, attractive valuations, and an anticipated earnings rebound.
Top Picks for Samvat 2083
Axis Securities' analysis highlights several companies exhibiting strong technical indicators and fundamental promise. Investors are advised to consider these picks for potential returns of up to 50% in the coming year.
Hindustan Aeronautics (HAL)
HAL has shown consolidation within a contracting range after a robust uptrend, forming a symmetrical triangle on monthly charts. The stock's movement above its descending trendline suggests a potential resumption of its broader uptrend, with sustained trading above this boundary reinforcing a further advance. Axis Securities projects an upside towards Rs 5,500-5,850.
Kotak Mahindra Bank
Kotak Mahindra Bank appears to be breaking out of a prolonged consolidation phase that followed a strong advance. The stock established a solid base around the Rs 300-330 mark during its consolidation. Recent price action indicates a potential resumption of the broader uptrend, with the RSI showing improved bullish momentum. The brokerage firm sees an upside towards Rs 520-560.
Tech Mahindra
After a significant rally and subsequent corrective phase, Tech Mahindra found strong support near Rs 980-1,000. The stock has since formed a base and is now attempting to break above a key resistance trendline. Increased volume and improving bullish momentum, as indicated by the monthly RSI, support this advance. Target levels are set towards Rs 2,100-2,350.
Sona BLW Precision Forgings (Sona Comstar)
Sona Comstar has broken out of a long-term consolidation range that began in 2022, establishing a strong base around Rs 400. A sustained recovery has pushed the stock above its upper boundary near Rs 750-760. A recent pullback to this breakout zone, now acting as potential support, could strengthen the case for a continued uptrend. The analysis indicates an upside towards Rs 965-1,070.
Aurobindo Pharma
Aurobindo Pharma's long-term chart reveals a breakout above a prolonged consolidation, followed by a retest of the breakout zone around Rs 1,000–1,100. The subsequent rebound suggests this former resistance is now acting as strong support, reinforcing a broader uptrend. Strong bullish candles and supportive momentum indicators point towards an upside of Rs 1,880-2,100.
Other Key Recommendations
- IOL Chemicals and Pharmaceuticals: Emerging from a prolonged consolidation, with an upside towards Rs 215-235.
- Jyoti CNC Automation: Breaking a descending channel, with potential for Rs 1,150-1,255.
- Karnataka Bank: Breaking sideways consolidation and retesting the breakout zone, targeting Rs 365-395.
- Dr Lalpath Labs: Forming a rounding base after a correction, with an upside towards Rs 2,150-2,285.
- Mayur Uniquoters: Breaking a prolonged consolidation with strong volume, targeting Rs 885-950.
- Shivalik Bimetal Controls: Breaking a long-term consolidation range with elevated volumes, with an upside towards Rs 1,130-1,285.
- Welspun Living: Forming an ascending triangle and breaking resistance, targeting Rs 260-275.
Disclaimer: This article provides general market commentary and should not be considered investment advice. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.