Analysts Pick GNFC, L&T Finance, RVNL as Top Stocks for Short-Term Trade

If you’re looking for some hot stocks to trade in the short term, analysts have identified a few winners. According to domestic brokerage firms like LKP Securities and SMC Global, Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), L&T Finance Holdings Ltd, Muthoot Finance Ltd, and Rail Vikas Nigam Ltd (RVNL) are all poised for a strong upside. These stocks have caught the attention of analysts due to their technical setup and the rising volatility in the domestic markets.

Let’s take a closer look at what the analysts have to say about these stocks:

1. Gujarat Narmada Valley Fertilizers & Chemicals (GNFC)

Analysts at SMC Global recommend buying GNFC as the stock has been trading in a rising channel with a formation of a higher bottom pattern on weekly charts. The stock is also holding well above its 200-day exponential moving average on the daily interval. GNFC recently broke out above the Ascending triangle pattern on weekly intervals, accompanied by positive divergences on secondary oscillators and an increase in average volumes. The recommended buying range for GNFC is Rs 660-665, with an upside target of Rs 750-760 and a stop loss below Rs 600.

2. L&T Finance Holdings

L&T Finance Holdings is following a higher high and higher low pattern on the daily chart, which is a bullish sign. The stock has good trading volume, indicating strength in the price action. The Relative Strength Index (RSI) indicator on the daily chart is also in the positive zone, supporting the bullish sentiment. Rupak De, Senior Technical Analyst at LKP Securities, suggests establishing a long position in L&T Finance within the range of Rs 136-137, with a strict stop loss at Rs 131. The target price for L&T Finance is Rs 155.

3. Muthoot Finance

Muthoot Finance recently made its 52-week low of Rs 911.25 in March 2023 but has since made a V-shaped recovery. The stock is now trading above its 200-day exponential moving average on the daily time frame. After a series of prolonged consolidation phases, Muthoot Finance has given a fresh breakout above the falling trend line of a downward sloping channel. SMC Global recommends buying Muthoot Finance in the range of Rs 1,280-1,290, with an upside target of Rs 1,440-1,450 and a stop loss below Rs 1,180.

4. Rail Vikas Nigam (RVNL)

RVNL has reversed from a prior demand zone, indicating the potential for an uptrend to continue. The stock has also crossed back above the 50-day simple moving average on the daily chart. Rupak De suggests establishing a long position in RVNL within the range of Rs 155-157, with a strict stop loss at Rs 150. The target price for RVNL is Rs 175.

Please note that the information provided is for informational purposes only and should not be construed as investment advice. It’s always a good idea to consult with a qualified financial advisor before making any investment decisions.