Varanasi Investment：Stock picks for 2024： The major highlight of the year was the outperformance of the broader indices as both midcap and smallcap index rose 44 per cent and 53 per cent, respectively, said Religare Brok

Markets have delivered a strong performance in the calendar year 2023 and gained nearly 20 per cent so far. The major highlight of the year was the outperformance of the broader indices as both midcap and smallcap index rose 44 per cent and 53 per cent, respectively, said Religare Broking.

"Currently, Nifty is trading at a life-high, with upward momentum in sync with global markets. From the medium to long term perspective, Nifty has the potential to scale to 22,650, followed by the next target at 24,100. On the other hand, we expect the index to find support at 20,250 first and major at 19,000 level, in case of a decline," the domestic brokerage mentioned.

Considering the above scenario, Religare said it has picked five stocks to invest in 2024 on the basis of their relative strength and price action.

The first stock which the brokerage suggested was Kotak Mahindra Bank LtdVaranasi Investment. "The lender's counter has been trading in a broader consolidation range, i.e. Rs 1,650-2,000, for over two years and currently seeing recovery after retesting the lower band of that range," it mentioned. Going forward, the scrip may see Rs 2,060-2,180 level, the brokerage suggested.

The second counter which Religare selected was Asian Paints LtdSurat Investment. "The stock is among the best performer within the paint space, maintaining a steady long uptrend. It has been witnessing consolidation in a broader consolidation, i.e. Rs 2,550-3,570, for over two years, forming higher lows on the weekly timeframe. It could see Rs 3,590-3,900 levels," it stated.

Eicher Motors Ltd was next on the list with potential targets of Rs 4,550-4,800. "We are seeing noticeable traction in the auto space and Eicher Motor is trading largely in tandem with the trend. It has reclaimed the record high after spending nearly over a year in a corrective phase. And, it is currently hovering in a narrow range around its record high, forming a base around its previous breakout zone. This consolidation is a fresh buying opportunity for those who missed the chance earlier," Religare underscored.

The brokerage has selected United Spirits Ltd as its fourth pick for the coming year with targets of Rs 1,210-1,325Pune Wealth Management. "McDowell-N registered a decisive breakout from the consolidation phase in July 2023, which continued for over one and a half years. It has been gradually inching higher since then, finding support at its short term moving average, i.e. 20 WEMA. Following price action and positioning of the momentum indicator, we expect the stock to maintain the prevailing tone," Religare said.

And, the fifth stock in Religare's list was from the IT pack, namely Mphasis Ltd, with potential targets of Rs 2,900-3,350. "Mphasis has recently ended the two-year-long corrective phase. Post the initial surge, it is forming a fresh buying pivot around the support area of previous swing high. Its chart pattern combined with recent buoyancy in the IT space is suggesting buying interest at the elevated levels," the brokerage stated.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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