Diwali 2023 picks: Axis Bank, DLF, Power Grid among stocks picked by Chola Securities

Ahead of Diwali 2023, Murugappa group's Cholamandalam Securities has shared its five picks, on technical basis, which may deliver a return on 30-35 per cent to the investors in next one year. The technical and charts of these counters appear sound to the team led by Dharmesh Kant, Head of Equity Research at domestic brokerage firm.

The team has picked blue-chips like Axis Bank and Power Grid along with other shining stocks like JBM Auto, DLF and Godrej properties. Here's what Chola Securities said about these stocks which picking them as Diwali picks:

JBM Auto | Buy | Target Price: Rs 1,670 | Stop Loss: Rs 1,000
JBM Auto Ltd has been forming higher highs and higher lows patterns over a longer time frame; indicating an uptrend. Post 30 per cent from recent peaks the stock is seen forming a base with positive bias. In the medium term-time frame; there has been a formation of dragonfly doji candlestick. A reversal is on the cards and will be confirmed once the price crosses the 20-WEMA (weekly exponential moving average) of 1250 level. Momentum indicators like RSI are building on strength. Having regard to aforesaid triggers, our first Diwali pick is JBM Auto. We are initiating buy recommendation on the stock with stop loss of Rs 1,000 and a target price of Rs 1,670.

DLF | Buy | Target Price: Rs 700 | Stop Loss: Rs 460
DLF Ltd has witnessed good volumes during the period of 2020-2022. However, the stock was in a consolidation phase for consecutive months. Post consolidating, DLF has given a breakout on a long-term time frame indicating the price to move further upwards. On a medium-term time frame, the stock has been sustaining above all the moving averages since multi months; indicating strength. Having regard to aforesaid triggers, one of our next Diwali Pick is DLF. We are initiating buy recommendation on the stock with stop loss of Rs 460 and a target price of Rs 700

Power Grid | Buy | Target Price: Rs 270 | Stop Loss: Rs 165
Power Grid Ltd has been in an uptrend, since 2022 having price action which is continuously forming higher highs and higher lows pattern. In the medium-term time frame, the stock witnessed a range breakout around Rs 190 levels. Post the breakout, follow-up buying was witnessed with stable volumes; indicating strength. Momentum indicators like RSI are indicating the uptrend to continue. Having regard to aforesaid triggers, our next Diwali Pick is POWER GRID. We are initiating buy recommendation with stop loss of Rs 165 and a target price of Rs 270

Axis Bank | Buy | Target Price: Rs 1,300 | Stop Loss: Rs 850
Axis bank Ltd has been in an uptrend forming higher lows & higher highs on mid and long-term time frames. The price has been sustaining above the moving averages since May 2023. Additionally, volumes have been consistent; indicating strength. Momentum indicators like RSI are further building on strength; for a new trending price up move. Having regard to aforesaid triggers, our next Diwali Pick is Axis Bank. We are initiating a buy recommendation with a stop loss of Rs 850 and a target price of Rs 1,300.

Godrej Properties | Buy | Target Price: Rs 2,150 | Stop Loss: Rs 1,425
Godrej Properties Ltd is forming a reversal pattern post correcting 60 per cent from all-time high levels. The stock is presently consolidating with decent volumes. In the medium-term time frame, the price has been sustaining above the moving averages; indicating strength. Rising volumes and RSI indicating strength break out seems to be on cards. Having regard to aforesaid triggers, our last Diwali Pick is Godrej Properties. We are initiating buy recommendation on the stock with stop loss of Rs 1,425 and a target price of Rs 2,150.

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