Trading strategies for stocks that doubled your money in 2023

1 out of every 25 shares from the Nifty 500 index has more-than-doubled investors wealth in 2023 so far, with Apar Industries, Mazagon Dock and JBM Auto as the top movers.

Domestic stock market have logged smart gains so far in the calendar year 2023, and climbed to record high levels overcoming several headwinds along its way. 

The NSE benchmark index, the Nifty50 has gained 8 per cent so far, whereas the broader Nifty 500 index has galloped over 11 per cent on hopes that the Indian economy will maintain its growth trajectory amid crisis in other world economies. Also, rising investor participation with steady flows through the mutual funds route has helped stem downsides in times of sudden volatility.

Among individual stocks, 1 out of every 25 shares from the broader Nifty 500 index has zoomed over 100 per cent or more-than-doubled investor wealth so far in 2023. The top wealth creator so far is Apar Industries with a mammoth gain of 220 per cent, from levels of Rs 1,793 at the end of December 2022, the stock now quotes around Rs 5,750.

Other prominent gainers include stocks like - Mazagon Dock Shipbuilders, JBM Auto, Rail Vikas Nigam, REC, Suzlon, BSE, IRFC, PFC, Polycab, Finolex Cables, SJVN and Aurobindo Pharma.

Going ahead in the last quarter of 2023, here's what the chart suggests for these select 5 stocks:

Apar Industries

Current Market Price

Likely Upside: 21%

Apart from the 220 per cent gain in 2023 so far, shares of Apar Industries have witnessed a steady ascend since late May 2022 from levels of Rs 600-odd levels - thus generating a whopping 858 per cent or 9.5-fold jump in the last 16 months.

Interestingly in the last 16 months, the stock has seen only one meaningful correction in the month of January 2023, wherein it dipped over 26 per cent. Since the start of this financial year, the stock has been following a pattern, wherein it bounces back in the range of 30 - 45 per cent from its very recent low.

Recently, the stock dipped and tested a low at Rs 4,600 on September11, and within 10 trading sessions zoomed over 30 per cent to hit a high at Rs 6,020 on September 27. In case, the stock continues to follow the ongoing pattern, a 45 per cent upside from the recent low, suggests a target price of Rs 6,675 - this translates into a potential upside of over 21 per cent from current levels.

On the downside, technically, the 20-DMA (Daily Moving Average) at Rs 5,170 seems to be the immediate support for the stock. CLICK HERE FOR THE CHART

Mazagon Dock Shipbuilders

Current Market Price: Rs 2,185

Likely Upside: 14%

Mazagon Dock Shipbuilders has surged over 178 per cent so far this year, primarily the entire up move has began only from June onwards, with the stock up as much as 172 per cent in the last three months. 

The monthly chart suggests that the bias for the stock is likely to remain positive as long as the stock sustains above Rs 1,945. Immediate support for the stock can be expected around its 20-DMA at Rs 2,110. On the upside, the stock can revisit its recent high near about the Rs 2,500-mark. CLICK HERE FOR THE CHART

JBM Auto

Current Market Price: Rs 1,375

Likely Upside: 29%

Shares of JBM Auto have surged nearly 166 per cent so far this year. Further, the stock has seen a prolonged period of consolidation in the month of September with the stock dipping nearly 17 per cent from its recent high of Rs 1,607.

Select momentum oscillators have hit the oversold zone on the daily chart, with Slow Stochastic showing early signs of a likely pullback at the counter. 

The recent low of Rs 1,325, followed by the 100-DMA at Rs 1,230 are expected to act as cushions for the stock in case of further dip. On the upside, the stock needs to clear the near hurdle around Rs 1,450, for a fresh up move to resume.

As and when the stock stabilizes above Rs 1,450-level, it can potentially rally towards Rs 1,775 - suggesting a potential upside of up to 29 per cent. CLICK HERE FOR THE CHART

Suzlon

Current Market Price: Rs 25.75

Likely Upside: 45%

Suzlon has witnessed a significant range breakout on the monthly chart in June 2023 after a period of almost 10 long years. The stock since then has rallied nearly 73 per cent, and is up 142 per cent so far this year.

The monthly chart clearly suggests that the bias for the stock is likely to remain bullish as long as the stock sustains above the higher-end of the Bollinger Bands at Rs 22.25 level. On the upside, the stock seems on course to test the 200-MMA (Monthly Moving Average), which suggests a potential upside target of Rs 37.50 - thus up to 45 per cent rally from current levels. CLICK HERE FOR THE CHART

Aurobindo Pharma

Current Market Price: Rs 915

Likely Upside: 14%

Shares of Aurobindo Pharma seems to be favourably placed on multiple time-frames. On the daily chart, the stock has been treading along its higher-end of the Bollinger Bands, and taking support around the 20-DMA occasionally. 

Following the recent re-test of its 20-DMA at Rs 868-odd levels, the stock has bounced back over 5 per cent in Friday's trading session. So far in 2023, the stock has gained 101 per cent. 

On the upside, breakout and sustained trade above Rs 920 level, can trigger a rally towards Rs 1,050. CLICK HERE FOR THE CHART