After a strong start to September, Indian benchmark indices declined by around 0.7 percent in early deals on Wednesday, September 4, 2024, following a global sell-off.
However, most experts believe such corrections are a good opportunity to buy on dips as the upward momentum of the Indian markets is likely to continue.
Brokerage StoxBox has curated three standout investment picks poised to capitalise on current market trends which offer strong potential for significant returns. These selections combine solid fundamentals with promising technical setups, providing investors with lucrative opportunities. Here’s a look at these picks so you can make informed decisions and strengthen your portfolio.
1) Power Finance Corporation (PFC)
According to the brokerage, PFC’s last traded price of ₹558.85 (September 3) presents a compelling investment opportunity. StoxBox sets a target price of ₹600, implying an over 7 percent upside potential with a stop loss at ₹507 over a strategic timeframe of two months. Established in 1986 and owned by the Ministry of Power in the Government of India, PFC is a key financial player in the Indian power sector.
After profit-taking at its highs of ₹580, PFC has retraced to a critical demand zone around ₹480, attracting significant buying interest. This positions the stock for a potential rebound, supported by its strong market presence and robust fundamentals. PFC’s attractive risk-reward profile makes it an excellent choice for investors seeking to benefit from a potential uptrend, said the brokerage.
The stock has given multibagger returns of over 164 percent in the last one year and gained 46 percent in 2024 YTD.
Wipro Ltd, currently trading at ₹536, is on the brink of growth with a target price of ₹612, implying a 14 percent upside potential and a stop loss at ₹508 over a two-month period. A global leader in IT and consulting, Wipro, is exhibiting a classic cup-and-handle pattern, signalling a possible trend reversal and growth potential. With the stock finding support at its 50-day moving average, Wipro offers a low-risk, high-reward opportunity for investors ready to capitalise on its next phase of growth, stated the brokerage.
The stock has advanced over 23 percent in the last one year and almost 14 percent in 2024 YTD.
Welspun Living, trading at ₹187.33, is recommended by StoxBox with a target price of ₹245 over a one-year period, indicating a potential upside of over 35 percent. A leading player in the global home textiles market, Welspun Living is well-positioned for long-term growth. The company benefits from industry tailwinds such as PLI schemes and the China +1 strategy. Despite geopolitical challenges, its focus on green energy and a significant 48 percent debt reduction since FY20 underscore its financial strength, noted the brokerage. Welspun Living’s commitment to sustainable growth makes it an attractive pick for investors aiming for solid returns over the next year, it added.
The stock has risen over 48 percent in the last one year and almost 30 percent in 2024 YTD.
StoxBox’s investment picks offer a balanced approach, combining technical insights with strong fundamentals. These recommendations provide investors with well-rounded opportunities to enhance their portfolios and gain a strategic advantage in the market. Consider these selections for a promising investment journey.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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