The brokerage has identified SBI and ITC as ‘safe picks’ while flagging HAL and Max Healthcare as ‘high beta’ picks.
With Diwali approaching, domestic brokerage Prabhudas Lilladher has identified a mix of safe picks and high beta plays to prep for the festive rally. According to them, State Bank of India and ITC stand out as stable picks, while HAL and Max Healthcare offer high-risk, high-reward opportunities.
Safe Picks: State Bank of India
Prabhudas Lilladher said traders could consider buying on declines toward ₹815, with support at ₹780 and target levels of ₹920, ₹960, and ₹1,020. The stock closed at ₹886 on Wednesday.
The stock shows stable technical support, making it a relatively safe pick. The brokerage said that the stock has demonstrated strong open interest writing around ₹800, while daily charts indicate solid support near ₹780, suggesting a favorable risk-reward setup.
Safe Picks: ITC
The brokerage said that the stock offers buying opportunities on dips toward ₹380, with support at ₹360 and targets of ₹465, ₹490, and ₹520. The stock closed at ₹400.3 on Wednesday.
Multiple support zones in the ₹380 – ₹400 band provide potential for a 20% upside, they added.
High-Beta Picks: Hindustan Aeronautics (HAL)
Prabhudas Lilladher believes that the stock presents a buying opportunity on declines to ₹4,550, with support at ₹4,300, while target levels are pegged at ₹5,500, ₹5,850, and ₹6,200. The stock closed at ₹4,839.70 on Wednesday.
After a steep correction, the stock has strong support around ₹4,400, offering an attractive risk-reward trade.
High-Beta Picks: Max Healthcare
The brokerage recommends initiating fresh positions on dips toward ₹1,080, with support at ₹1,050, and targets of ₹1,330, ₹1,420, and ₹1,500. The stock closed at ₹1,158 on Wednesday.
The stock has been consolidating in the ₹1,060 – ₹1,180 range, and improving option chain sentiment suggests a potential breakout with over 20% upside, they said.
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