Smallcaps that can rally 20% in near term

MUMBAI: The benchmark indices are witnessing a sharp rally, in line with other Asian peers, after the recent correction. According to analysts, the market is likely to remain rangebound in the near term ahead of the results season.

After the rally in frontline stocks, the broader markets are expected to follow suit. Some stocks in the space are showing strong buying and are likely to give good returns in the near term.

Following are recommendations of Ashwani Gujral, Fund Manager, ashwanigujral.com, on stocks which can give good returns in the short term.

Buy Alembic near Rs 22.6 with stop loss of Rs 20 for a target of Rs 27. The stock is continuing its uptrend and today it is breaking its range on upside.

Buy Sterlite Technologies around Rs 23.7 with stop loss of Rs 21 for a target of Rs 28. Today it opened with a gap up with volume and holding its gain.

Buy Triveni Turbine near Rs 54.75 with stop loss of Rs 49 for a target of Rs 66. After forming a base at Rs 52, it is coming out of its 200 DMA.

Buy IG Petrochemicals near Rs 20.95 with stop loss of Rs 19 for a target of Rs 25. The stock is coming out of its range with volume and price action.

Note: The recommended stocks are to be held for a period of 2-3 sessions with strict stop loss. If they don’t move in the mentioned time-frame, traders are advised to book profits.

Disclaimer: The above recommendations are based on technical views and information given by the analyst. Please consult your financial advisor before taking any position in the stocks mentioned.