As the Indian stock market faces a notable correction, influenced by significant outflows of foreign institutional funds, investors are now looking for better opportunities in other markets, notably China. This downturn is further compounded by negative investor sentiment due to geopolitical tensions in the Middle East, uncertainty surrounding the 2024 U.S. Presidential Elections, and disappointing corporate earnings.
With Diwali 2024 around the corner, analysts have begun to share their top stock picks for the upcoming Samvat year. Phillip Capital has identified ten key stocks to consider for investment in Samvat 2081. The recommended stocks include ABB India, Angel One, Bharat Electronics, Computer Age Management Services (CAMS), DLF, Hindalco Industries, HDFC Life Insurance, Hemisphere Properties India, Mankind Pharma, and MPhasis.
Top 10 Stock Picks for Diwali 2024
1. ABB India
ABB India is on the brink of a consolidation breakout. Phillip Capital indicates that immediate support for ABB shares is around ₹7,000, above which the stock is expected to show a bias toward an upward trend. The brokerage recommends buying on dips, especially towards support levels of ₹8,000 and ₹7,000. If ABB shares sustain above ₹9,200, they could reach higher levels of ₹11,250.
2. Angel One
Angel One has recently shown a breakout from a falling trendline, indicating a significant consolidation shift. The mid-term outlook remains positive, suggesting accumulation above ₹2,250, with a resistance level around ₹4,000 and a breakout target of ₹4,900. Phillip Capital advises accumulating Angel One stock on dips, with a crucial support level at approximately ₹2,750.
3. Bharat Electronics
Bharat Electronics is currently in a consolidation phase, after which a resumption of its upward movement is expected. Major support levels are identified at ₹240 and ₹200, while resistance levels are projected at ₹340 and ₹420 in the coming months. The recommendation is to accumulate on dips over the next 6 to 12 months.
4, Computer Age Management Services (CAMS)
Technically, CAMS shares are anticipated to show a favorable outlook above ₹3,350. Potential mid-term targets are set at ₹5,400 and a significant level of ₹6,500. The recommendation is to buy on dips, with strong support levels at ₹4,000 and ₹3,500, and resistance levels at ₹5,400 and ₹6,500.
5. DLF
DLF is currently experiencing a consolidation phase within a major impulsive trend. Immediate support is observed around ₹780, with a significant support level at ₹660. The potential price targets are projected to be ₹1,080 and ₹1,260. Phillip Capital recommends accumulating on dips for a delivery buy over the next 6-12 months.
6. Hindalco Industries
Hindalco shares are structurally in an upward trend, with an outlook favoring accumulation on dips. Strong mid-term support levels are identified at ₹620 and ₹500. The stock is seen as a candidate for proportionate buying on dips, aiming for higher targets of ₹920+ in the next 6-12 months.
7. HDFC Life Insurance
HDFC Life shares are nearing a significant consolidation breakout. Sustaining above ₹760 could allow for a climb to ₹820 and potentially ₹950 in the coming months. Key support levels for fresh delivery buying are around ₹660 and, further down, ₹540. The outlook suggests proportionate delivery buying on dips.
8. Hemisphere Properties India
Hemisphere Properties is currently in a consolidation phase, with an outlook for accumulation. Mid-term support is located at around ₹160, with lower support at ₹120. Potential resistance levels are set at ₹240 and an extended target of ₹320.
9. Mankind Pharma
Mankind Pharma exhibits a structure of higher lows and higher highs, indicating a bullish bias. Mid-term supports are identified at around ₹2,200 and lower major support at ₹1,900. The technical outlook favors buying on dips, with potential targets of ₹3,200 and an extended level of ₹3,650. The recommendation is for delivery buying on dips and proportionate accumulation over the next 6 to 12 months.
10. MPhasis
Mphasis stock holds a buy-on-dip outlook above ₹2,600. Interim targets are projected around ₹3,400, with further breakout potential above this level reaching ₹3,800 and extended targets of ₹4,400. Phillip Capital encourages accumulating on dips for delivery toward higher levels.
As investors prepare for Diwali 2024, these stock picks by Phillip Capital aim to guide decisions in a market marked by uncertainty and opportunities.
