Last week, the market gave an exciting breakout from the long-lasting consolidation. Many stocks have witnessed a substantial surge in price, so it is a good time to ride the momentum and go long on breakout stocks backed by strong fundamentals. Some of them like Redington, Tata Power, UPL can become multibagger stocks in 2022.
Hot Stocks to Buy Now: Tata Power
The price of Tata Power’s stock price has corrected more than 5% from its all-time high in the month of October. The correction started from an index of resistance at Rs 243, then the stock price retraced to a lower line at Rs 229 and has consolidated for more than two weeks. Now that prices have broken above the previous resistance at Rs 243, the stock may resume its next wave in a broader uptrend that targets Rs 243 again, but with a higher entry price. We can buy the stock and set a stop loss below Rs 219.
Hot Stocks to Buy Now: UPL
After a long consolidation, the stock finally broke out above its trend line resistance this week, hitting a high of Rs 817. The momentum volume indicator that uses volume to predict price direction shows buying interest in the stock. Hence, we expect the stock to move higher from here. Traders can look for buying opportunities at Rs 784-778 for an upside target of Rs 820. A stop loss order can be placed just below Rs 759 for a potential downside target of Rs 753.
Hot Stocks to Buy Now: Indiabulls Real Estate
The stock seems to have completed its correction in price and is entering a phase of increasing time. Traders can look to trade with a positive bias and buy around the current price of Rs 166 for a potential target of Rs 183 in the next 3-4 weeks. One can place a stop loss below Rs 157 on long positions.
Hot Stocks to Buy Now: Nalco
Nalco has confirmed a decisive volume-based breakout on Friday. This indicates a short-term rally in the counter. The RSI-Smoothened oscillator on the daily time frame chart has crossed 70 level. This is likely to provide impetus to the extended move. The analyst recommends buying around Rs 109 for a target of Rs 116. Stop loss can be placed at Rs 104.90.
Hot Stocks to Buy Now: ACC
Some large-cap cement counters saw a sharp rise in prices last week. ACC formed a small bullish flag and broke out of its 200-day moving average. Price action looks positive, so the analyst recommends buying ACC for a near-term target of Rs 2,410 and a stop loss of Rs 2,230.
Hot Stocks to Buy Now: Gujarat Gas
The stock has broken above its key 50-week SMA and is now trading in a range between 580 and 690. With the stock trading over its short-term and intermediate-term moving averages, momentum readings like the 14-day RSI in rising mode and not overbought, and the technical setup looking positive, we believe there is room for more gains in the coming weeks. The analyst recommends buying the stock between 680 and 690. Stop loss is at 640, while target is at 785.
Hot Stocks to Buy Now: Reddington
The stock is in an intermediate uptrend. With the 50-day SMA above the 20 day SMA, along with rising 14-day RSI and momentum readings, the stock has a favorable intermediate technical setup. The 10-day EMA is acting as resistance. A bullish crossover on MACD with positive divergence on RSI is a good sign. Investors should buy this stock between Rs 160-165 levels and keep stop loss at Rs 145 while target of Rs 205.