Elgi Equipments, JK Paper: Strategy for stocks that have doubled in 2022

Bharat Dynamics, JK Paper and Hindustan Aeronautics have surged over 100 per cent, while Elgi Equipments and Schaeffler India are just shy from doubling the investor's wealth so far in 2022.

The Indian stock market has been on a roller coaster ride so far in 2022, despite the overall volatility few stocks have doubled investor’s wealth during this period. Among indivdual stocks, Adani group holds the king’s throne by delivering the most thrilling and overwhelming returns, up to 3-fold in as less as six months time period.

For instance, Adani Power has zoomed 314 per cent, while Adani Enterprises, Adani Transmission and Adani Total Gas soared over 100 per cent each.

Other than the Adani gourp stocks, select mid- and smallcap stocks have also outperformed the benchmark indices. Shares of Bharat Dynamics, JK Paper and Hindustan Aeronautics have surged over 100 per cent, while those of Elgi Equipments and Schaeffler India are just few bucks shy from doubling the investment in this year so far.

Here’s an outlook on the select mid- and smallcap stocks, decoding the likely future trend:-

Bharat Dynamics Ltd (BDL)

Outlook: Next breakout over Rs 900, can trigger 22 per cent upside

Shares of Bharat Dynamics have gained 115 per cent so far this year. The bullish rally kicked-off in the late 2020, following which the stock has not displayed any signs of reversal post conquering the previous record high of Rs 458.70. 

The daily chart shows the next breakout to emerge once the stock crosses Rs 900-mark, which seems to be currently acting as a major hurdle as the stock failed to dismantle the same in April and August this year. Support for the stock exists at Rs 750 level. A breakout over Rs 900 might see bulls hoist the stock towards Rs 1,100 with an aggressive sentiment. CLICK HERE FOR THE CHART

Elgi Equipments Ltd (ELGIEQUIP)

Likely target: Rs 645

Upside potential:  15%

Elgi Equipment has soared 90 per cent in the current year so far, following a 97 per cent rally in 2021. The stock massively broke out in August overturning the barrier of Rs 425, and further signals a rally to Rs 645 mark, according to the daily and weekly chart. The Relative Strength Index (RSI) does not seem to let bears demonize the bullish strength.  CLICK HERE FOR THE CHART

Hindustan Aeronautics Ltd (HAL)

Likely target: Rs 3,000

Upside potential:  23%

Shares of Hindustan Aeronautics trend with “Higher High, Higher Low” formation, gaining a robust ground post crossing the recent hurdle. The trend is up over Rs 2,200 from a short-term objective. Only if the stock slips under Rs 1,600, the trend could see negative bullishness. The upside seems could take the stock to Rs 4,000-mark with underneath sentiment firmly supporting the bulls, as RSI stays unbeaten in overbought territory. CLICK HERE FOR THE CHART

JK Paper Ltd (JKPAPER)

Outlook: Hurdle at Rs 440, breakout could see 15 per cent upside

While the JK Paper stock jumped 106 per cent in this year, the current chart formation reveals hurdle at Rs 440-level. The next leg of upside begins over the same hurdle. On the downside, the stock has a cushion at Rs 400. Only a breakdown under Rs 360 might undermine the bullish sentiment from a medium-term perspective. A breakout over Rs 440 shall see a rally to Rs 510-level.  CLICK HERE FOR THE CHART

Schaeffler India Ltd (SCHAEFFLER)

Likely target: Rs 4,000

Upside potential:  17%

Barring May and June, the stock has logged gained in every single month this year. To date, the stock has zoomed 95 per cent and continues to attract buying momentum with a vertical rise. The bullish trend indicates rally towards Rs 4,000-mark. The broader outlook indicates support at Rs 3,000-mark and until this mark is defended, the bullish sentiment is likely to remain intact. CLICK HERE FOR THE CHART