Sundram Fasteners, Karnataka Bank: Two midcaps Angel Broking is bullish on

In last couple of weeks, the midcap and small cap baskets are on a roll. In fact, unlike previous months, so many stocks from the 'cash' segments started raising their heads higher

Sundram Fasteners

View:    Bullish
 

Last Close:  Rs 547.35

Why buy: In the last couple of weeks, the midcap and small cap baskets are on a roll. In fact, unlike previous months, so many stocks from the ‘cash’ segments started raising their heads higher and have given some stellar moves. It appears that they are finally out of the slumber and are gearing up for strong moves. This stock is clearly one of them. After a long consolidation of nearly Five months, the stock has confirmed a breakout from multiple technical indicators. Looking at the increase in volume activity, we expect the stock to climb in the next few weeks. Thus, we recommend buying at current levels for a target of Rs.615 and the stop loss should be fixed at Rs.508. 

Karnataka Bank

View: Bullish

Last Close: Rs 127.75 

Why buy: The banking has been the flavor in this ongoing rally and before large cap showing their dominance, the entire midcap private baking space started buzzing. Within this pocket, ‘Karnataka Bank’ has always been our preferred pick along with ‘RBL Bank’ and ‘DCB’. In the week gone by, we saw a massive bump up in this counter and thereby confirmed a breakout from multi-month highs. The weekly chart looks extremely encouraging and hence, we recommend buying this stock at current levels for a target of Rs.138 over the next 14 – 21 sessions. The stop loss should be fixed at Rs.122.40.  

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Disclaimer: Sameet Chavan is Chief Analyst- Technical & Derivatives, Angel Broking. The views expressed are his own