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6 Important Stocks For Short Term Profit

by besttradingsapp
Stocks

On Wednesday, India’s stock markets maintained their downward trend for the fourth consecutive day, losing almost 0.5 percent. Important stocks for short-term profit from this extreme volatility.

Why the downward trend?

This drop might be due to several factors. Recent events, such as central bank decisions and frequent cash withdrawals by foreign investors, have caused significant drops in the value of local stock markets.

Geopolitical worries, violent actions, inflation, and interest rate movements have recently affected the market differently. Things have always been difficult, so it’s no wonder that they’ve been difficult recently.

What is a short-term gain?

When you choose to invest for a shorter period, you will need the funds at a particular time.

For example, if you’re paying for a wedding or a down payment on a home, you’ll need to have access to the funds when the time comes. Less investment with a time horizon of fewer than 12 months is considered short-term in the stock market.

Following is a list of six companies that several industry experts say have a high probability of initiating a rally shortly, resulting in substantial short-term gains for investors. To purchase these stocks for short-term gains, you must have the Best Demat Account in India.

6 Stocks With The Potential For Short Term Gains

  1. HUL

After breaking out of its range, the stock saw profit booking at higher levels. Nonetheless, the medium-term development of Hindustan Unilever remains favorable. It is now trading at a 50-day simple moving average with a higher bottom shape. Until it trades below Rs 2,070, positional traders will maintain a bullish posture and aim for Rs 2,300.

  1. ITC

Last week, ITC exhibited relative strength. While the Nifty has decreased by 3.87 percent, ITC has increased by 2.35 percent during the same period. The stock has thus broken out of its current trading range.

Technical indicators send optimistic signals as the stock trades above its 20-day and 50-day simple moving averages. Momentum indicators such as the 14-week RSI also increase and are not overbought, indicating more gains.

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  1. HDFC Life

Since the previous substantial reversal, the stock has maintained a higher bottom pattern on daily and weekly charts.

Despite the market’s pessimism, it easily topped its 50-day Simple Moving Average. The company’s price is now trading at its 20-day simple moving average, and the chart structure indicates upward potential. The overall pattern shows that positional traders may purchase with a satisfactory risk-reward ratio.

Buy this company’s share with a target price of Rs 690. The current price of HDFC Life Insurance Company is Rs 568.45. The analyst anticipates that the price of HDFC Life Insurance Company Ltd. will reach its target in one year.

  1. ONGC

Recently, oil prices climbed by more than 5 percent due to Russia’s sanctioning of several European gas firms and the subsequent reduction in gas flows from Russia to Europe. It created uncertainty in the global energy markets, contributing to oil prices. ONGC’s current stock price reflects all of these details.

The short-term prognosis for ONGC is optimistic, and stock market professionals advocate buying the counter with a stop loss of 154 rupees and a target range of 194-200 rupees. The stock eventually finished at Rs 166.5, and his objective shows there is space for a 20 percent increase from its current price.

  1. Titan

Titan is a member of the TATA family. The corporation is the most successful consumer lifestyle brand with many jewelry, watch, and eyewear brands. With a market capitalization of Rs 2,11,736 crore, it is the world’s sixth-biggest integrated own-brand watchmaker.

The target price for Motilal Oswal Securities is Rs 2,900. The increasing gold rate makes this possible. You may also buy gold at the current Gold Rate Today.

As reported by the brokerage, “Despite the volatility in gold prices and COVID-driven interruptions, the company’s profits CAGR over the last five years ending in FY22 has been excellent (24 percent). We anticipate this tendency to continue, with a CAGR of over 20 percent over the next few years. The stock’s near-term multiples look high, but its extended runway for profitable development justifies its premium valuation.” Hence, the stock is suitable for short-term gains and the long term.

  1. UltraTech Cement

The Aditya Birla Group, which owns the largest cement company in the country, has joined the battle to acquire Holcim’s stake in Ambuja Cement and ACC.

Anand Rathi provided a buy recommendation on UltraTech Cement with a price target of Rs 7,600. The current market value of one UltraTech Cement is Rs 6310. The analyst says he has calculated that it would take one year for UltraTech Cement Ltd.’s share price to reach the specified goal.

The Bottom Line

Market volatility is forecast to continue. Make modest purchases amid price drops to minimize losses.

Diverse factors, such as rising interest rates, worries of slowing economic growth, and new tightening measures in China, continue to weigh on investors, leading indices to fluctuate erratically.

The Nifty has seen a substantial decline of 6.5% during the last seven trading days. It is a significant risk connected with this investing choice. However, we do not anticipate such an event happening shortly during the next one to two years.

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