Hot Stocks | BPCL, Hindustan Unilever, Torrent Power can give up to 13% return in short-term

On December 3, Nifty traded flat near all-time high but the broader markets continued their positive momentum with a sharp up-move in midcaps and smallcaps.

Nifty midcap and smallcap indices closed near 2-year highs and may continue to outperform the broader markets.

The advance-decline in the derivatives segment remained strong with 125 shares advancing and 14 declining for the current expiry month-till-date.

There could be some bouts of volatility due to the RBI monetary policy announcements.

Bank Nifty is facing resistance near 30,200-30,500 levels and we expect some time-wise correction after a sharp up-move in the last 2 months.

Among sectors, we expect Nifty FMCG and Pharma index to outperform from the current levels as they have crossed the short-term averages.

Risk-reward is in favour of longs and we expect scaling a new all-time high.

Here are three buy calls for the next 2-3 weeks:

BPCL | LTP: Rs 393.35 | Target price: Rs 445 | Stop loss: Rs 368 | Upside: 13%

The stock has made higher bottoms on the weekly charts and witnessed positive momentum crossing its 50-day average.

Trend reversal and RSI turning upwards from the bottom could witness a sharp up-move to test the recent highs.

As per the current set up, we believe the stock and sector will remain in focus for the next couple of weeks.

Hindustan Unilever | LTP: Rs 2,130 | Target price: Rs 2,380 | Stop loss: Rs 1,985 | Upside: 12%

The stock is trading sideways near its band of short and long-term averages and we expect the stock to give an upward breakout.

We believe it has completed its price and time-wise correction and now expect it to outperform over the next few weeks.

Torrent Power | LTP: Rs 324.80 | Target price: Rs 360 | Stop loss: Rs 300 | Upside: 11%

The stock has witnessed a sharp breakout with strong volumes after trading in a narrow range over the past two months.

Key technical indicator RSI is trading above its average line and has also reversed turning upwards, looking poised for a breakout from the current levels.

There are multiple support levels in the range of Rs 305-315 which offers a good risk-reward ratio from the current levels.

(The author is Senior Research Analyst at Reliance Securities)