Hot Stocks | Here's why OMDC and Piramal Enterprises are good short-term bets

For the last couple of weeks, global uncertainty was not letting us move higher but the moment the pressure started to cool off, our market took off and in the process, the Nifty managed to surpass the psychological sturdy wall of 15,000 with some authority.

Last week, although no major momentum was seen in the index, the undertone was bullish and hence, slowly and steadily we marched towards record highs.

With May 28’s extended move, Nifty went on to post a new high on an intraday as well as on a closing basis.

Until May 27, banking and IT names were the major contributors to the move. But the sleeping lion Reliance Industries finally seems to have awakened as it single-handedly led the market at a new high on the concluding day of the week.

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Sameet Chavan
Sameet Chavan
CHIEF ANALYST- TECHNICALS & DERIVATIVES|ANGEL BROKING
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As far as levels for Nifty are concerned, 15,600 is the immediate point above which there is no major level visible before yet another milestone of 16,000.

But it would be difficult to gauge whether the extended move from hereon would be similar (slow and steady) in nature or it would have some faster legs in between.

On the other hand, 15,300 – 15,150 – 15,000 are immediate supports.

Sectorally, one after other, different themes are expected to play out well and it’s better to stick to a stock-specific approach because the low-hanging fruit is already gone and from hereon it would not be easy at all to do stock picking.

The banking sector has been a bit inconsistent of late but we still believe that this heavyweight space has a lot of potential and is likely to drive the market at higher levels.

Despite having highlighted a lot of positive factors, we would advise traders not to get complacent. Hence, it’s better not to get over leveraged and should follow strict stop losses for existing positions.

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

Orissa Minerals Development Company (OMDC) | LTP: Rs 2,773.85 | Target price: Rs 3,050 | Stop loss: Rs 2,550 | Upside: 10%

This stock has not done anything in the last 8 – 9 months as it has been vacillating within a small range all this while.

Last Thursday, prices finally managed to burst through their long congestion phase. If we take a glance at the volume activity, more than average daily volumes are clearly visible.

On the subsequent sessions, we witnessed a minor correction which can be construed as a pullback move towards the breakout point and hence should be considered a good buying opportunity.

Piramal Enterprises | LTP: Rs 1,782.90 | Target price: Rs 1,950 | Stop loss: Rs 1,680 | Upside: 9%

After seeing a spectacular recovery post-March 2020 fiasco, this stock finally took a breather around the 200-SMA on the weekly chart.

The stock underwent some time-wise and price-wise correction in the past three months.

However, looking at the past few weeks’ price action, it appears that the stock has cemented its position around the previous breakout point of Rs 1,600.

This coincided with the rock-solid support zone of the weekly 89-EMA as well.