Stocks to buy: Nandish Shah of HDFC Securities suggests two smallcap shares

Nifty continued its upward journey for the third day in the row on the back of strong global cues. Nifty ended the day with the gains of 181 points or 0.75 per cent to close at 24,457 levels, highest since November 6. Nifty is now on the verge of breaking above the crucial hurdle of previous swing high of 24,537 levels. Nifty has formed bullish Higher top Higher bottom formation and is in the process of forming a bullish inverted H&S pattern. The underlying trend of Nifty continues to be positive. 

 

A decisive move above 24,537 is likely to open the next upside target of 24,900 in the near term. The immediate support is placed at 24,300, as per the concept of change in polarity.

Here are two recommendations for the next 3-4 weeks:

Buy Dodla Dairy (Rs 1,250) |Target Rs 1,340/1,400 | Stop loss Rs 1,180 | Return 12 per cent

Stock price has broken out on the daily chart with higher volumes where it closed at its highest level since October 28, 2024. The primary trend of the stock is positive as it is placed above its 200 day EMA. 

 

The stock price is on the verge of breaking out from the symmetric triangle on the daily chart. Momentum Indicators and oscillators are showing strength in the current uptrend of the stock.

 

Buy Sagar Cements (Rs 232) | Target Rs 246/ 255 | Stop-loss Rs 222 | Return 10 per cent

The stock price has broken out on the daily chart from the downward sloping trendline adjoining the highs of June 10 and July 31, 2024. Volumes have risen sharply along with the price rise suggesting strength in the stock. The primary trend of the stock turned positive as the stock price closed above its 200 day EMA.  (This article is by Nandish Shah, senior technical/derivative analyst at HDFC Securities. Views expressed are his own.)