It has been almost 2 months to see Nifty in a range. But in this consolidation, few stocks have seen some really good buying. And still at present, there are few clear opportunities in market where returns could be in a great amount.
Mahindra & Mahindra
One of them is M&M, which can outperform the market in short-term. There has been a consistent and good buying in stock since in last few days. Currently, stock is quoting around Rs 1520. Comparing M&M with others, i think level of Rs 1850 is possible in next weeks or maybe few months.
Vedanta is my another pick for short-term investors. I had suggested to but it around Rs 280 few days ago. And even at present levels, i think one can try to buy Vedanta for a target of Rs 340-345 which is possible in next few weeks. However, for long-term or say 1–2 years, i think Tata Steel and JSPL are much better choice to hold in your portfolio in this market. They have potential to double your investment in next 1–2 year.
My another choice for short-term is PC Jeweller. In last few quarters, we have already seen a good and consistent buying in stock. Currently, stock is quoting around Rs 450 which looks very reasonable and somewhat attractive. As compare to others, stock is available at a very good price. And therefore I think in next few weeks or maybe few months we can see possible target of Rs 540.
Telecom Stocks in Focus
Idea is my next pick where a investor can take a look for short-term. After having such a great buying from level of Rs 73 to Rs 106, stock is now consolidating within a range. Even, Bharti Airtel is also consolidating in a range. However, Meeting of Telecom commission on how financial health of telecom companied is near to date i.e 21st December. From the meeting, i am expecting that some big relief steps for the companies could be taken. Maybe, final approval for the relief steps can take some more extended time. But yes, some good outcome is expected for telecom sector soon.
For Bharti Airtel, i don’t think that there is some large room for great potential upside in stock for investors in short-term. Whereas, in Idea Cellular, i think we could see some good buying in next few quarters. In Rcom, i think current scenario of lenders pentitions against it and settlement with them is much important for the company in short-term. Sale of its major assets could also be the big event for the investors to change their outlook on the company.
Overall, i think at present, Idea Cellular could be a good option to buy for short-term. Bharti Airtel could also give good returns but comparatively Idea could be a good option. Rcom could also be the good option to buy for next few months in the hope of some relief from government for telecom sector and also stock is available at very cheap valuations.
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