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We have handpicked a few stocks for buying this Diwali that have given breakouts and showing strong accumulation patterns on the medium and longer-term charts. We have covered Large Caps as well as Mid Cap stocks that have performed in line with the market trend over the last one year and are now trading above their breakout levels. A few of them are at their major support levels. We advise accumulating these stocks in the recommended buying range to cover the downside risks and corrections in the market over the short term for the potential upside of 20-30% from the buying range over the medium term.

We believe the government thrust on the infrastructure sector is likely to continue. Based on that theme, we have included stocks from capital goods , metals, materials and infrastructure sectors. Selected stocks from auto, pharma, IT have also been included in the report that are likely to do well in the SAMVAT 2079.

Short Term Stock Picks

Ambuja Cement Ltd

CMP: 510 Buy Range: 470-450 Support zone: 400-355 Upside: 22%-33%

* The stock is in strong up trend forming a series of higher tops and bottoms across all the time frames

* Stock on the monthly chart breakout above recent swing high of 450 level.

* The break out is witness by huge increase in volume.

* Stock is trading above 200 daily SMA indicating positive trend in a stock

* The monthly and quarterly RSI is in bullish mode and above 50 mark indicating further strength

* The above analysis indicate an upside of 560-610*.

Computer Age Management Services Ltd

CMP:2607 Buy Range:2550-2400 Support zone:2150-2000 Upside:18%-29%

* CAMS get into a steep correction after forming a top at 4067, it had found support near the 61.8% Fibonacci retracement levels of a rally 1260-4067 placed at 2348.

* At support level of 2348 stock form a hammer candlestick pattern on a monthly chart . It indicates that the stock is expected to reverse in uptrend.

* Stock is trading above 200 daily SMA. It indicate stock is in uptrend in a medium term.

* The weekly and monthly RSI is placed with bullish crossover indicating that the momentum has turned positive

* The above analysis indicate an upside of 2930-3185

Cipla Ltd

* Cipla Ltd was in consolidation between 1080-850 range., since mid of 2021. In September month stock broke above the upper band of the range bound consolidation.

* It broke the range with strong bullish candle which is accompanied by increase in volume.

* On the yearly chart, the stock is in strong uptrend forming higher high low formation.

* The monthly and quarterly RSI has given a bullish crossover indicating that the momentum has turned positive

* The above analysis indicate an upside of 1200-1320

Eicher Motors Ltd

CMP: 3597 Buy Range:3300-3180 Support zone:3050-2900 Upside: 16-24%

* The stock has decisively broken out above the “Multiple Resistance Zone” of 3350-3250 levels which confirms resumption of major up trend

* After breakout stock retested a breakout area and bounce back from 3377.Previous horizontal resistance zone of 3350-3250 will now act as support due to the “Principle of change in Polarity”.

* Breakout is accompanied by rising volume which indicate participation at breakout level.

* The monthly and quarterly RSI is in above its reference line indicating positive bias.

* The above analysis indicate an upside of 3750-4030*.

Federal Bank Ltd

CMP: 132 Buy Range: 125-110 Support zone: 105-80 Upside: 28%-40%

* Federal Bank on the quarterly chart continue to trend higher forming a series of higher tops and bottoms within Up-sloping channe

* The stock has decisively broken out long term “Multiple Resistance Zone” of 123-128 levels which reconfirms resumption of major up trend

* On weekly chart stock form “inverted head & shoulder” –a reversal pattern with a break out above a neckline of 110.

* The monthly and quarterly RSI is in above its reference line indicating positive bias

* The above analysis indicate an upside of 150-165*

The Great Eastern Shipping Company Ltd

CMP: 520 Buy Range:480-440 Support zone:400-350 Upside:21%-33%

* Since 2007 the stock was consolidating between 485-137 levels within “triangular” formation

* However with Sept.2022 close, it has confirmed this pattern breakout around 440 levels on a closing basis

* Previous horizontal resistance of 485 will now act as support due to the “Principle of change in Polarity”

* Rising volumes in past couple of quarters signifies increased participation on multi yearly breakout

* The monthly and quarterly RSI is in bullish mode and above 50 mark indicating further strength

* The above analysis indicate an upside of 555-613*.

Godfry Philips India Ltd

CMP: 1396 Buy Range:1350-1200 Support zone:1000-850 Upside: 20%-40%

* Stock broke above broader consolidation of “symmetrical triangular” pattern which was in formation from Nov 2015.

* The breakout is accompanied by a increase in volume

* On the quarterly chart, the stock is sustaining above its “Down-sloping trend line”

* It is trading above 200 daily SMA reconfirming positive trend

* The monthly and quarterly RSI is in above its reference line indicating positive bias

* The above analysis indicate an upside of 1530-1785*

L&T Technology Services Ltd

CMP: 3674 Buy Range:3500-3300 Support zone:2950-2550 Upside:18%-29%

* Stock after a steep correction, stock has found support near the 61.80% Fibonacci retracement levels of a rally 995-5955 placed at 2889.

* At support level of 2889 stock form a piercing line candlestick pattern on a monthly chart . It indicates that the stock is expected to reverse in uptrend.

* On the yearly chart, the stock is in uptrend as it is forming higher high low formation.

* The monthly stochastic given a bullish crossover indicating that the momentum has turned positive

* The above analysis indicate an upside of 4000-4385

RITES Ltd

CMP: 384 Buy Range:360-340 Support zone:280-220 Upside:20%-39%

* On the monthly chart, stock has decisively broken out of its “Range bound consolidation” between 330-215 levels and is sustaining above the same

* The break out is accompanied by a sharp increase in volumes

* On the weekly time frame the stock is trading above all medium term key averages of 50, 100 and 200 weekly SMA. It indicates the strength in a stock in medium to long term

* The monthly and quarterly RSI is in bullish mode and above 50 mark indicating further strength

* The above analysis indicate an upside of 420-485 levels.

Tata Steel Ltd

CMP: 100 Buy Range:95-85 Support zone:80-70 Upside:26%-33%

* On the quarterly chart, stock has decisively broken out of its “symmetrical triangular” pattern

* The break out is accompanied by a sharp increase in volumes

* Stock rallied after a breakout and witness a throwback as it retraces 50% Fibonacci retracement of a rally from 25-153 placed at 89.

* Stock is holding a crucial support level of 89 and is expected to continue the rally.

* The monthly stochastic is in bullish mode and given a crossover in a oversold region.

* The above analysis indicate an upside of 113-120 levels.

Titagarh Wagon Ltd

CMP: 161 Buy Range:140-125 Support zone:120-90 Upside:25%-36%

* The stock has decisively broken out weekly “Multiple Resistance Zone” of 124-122 levels

* After breakout stock is moving in a higher high-low formation indicating it is in a strong uptrend

* Breakout is accompanied by a increase in volume activity which signifies increase in participation

* The monthly and quarterly RSI is in above its reference line indicating positive bias

* The above analysis indicate an upside of 165-180*.

Voltamp Transformers Ltd

CMP:2574 Buy Range:2400-2200 Support zone:2000-1700 Upside:22%-30%

* Stock break above yearly “horizontal resistance” of 1930 in a month of June 2022. Breakout is accompanied with huge increase in volume

* It retrace 38% of Fibonacci retracement of a rally from 739-3550 place at 2582

* On the quarterly chart, the stock has confirmed the “rounding bottom” pattern breakout and sustaining above the same

* Stock is trading above 200 day daily SMA indicating it is in uptrend

* The monthly and quarterly MACD is in bullish mode reconfirm uptrend

* The above analysis indicate an upside of 2800-3000*.

We suggest buying and accumulating the stocks for SAMVAT 2079 in mentioned range for potential upside of 20% - 40%.

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