Dussehra 2024 stock picks: 7 shares to buy for strong short-term returns

StoxBox has come out with seven stock ideas including Coforge Ltd, HDFC Bank Ltd, LTIMindtree Ltd and Mahindra & Mahindra Ltd that it said are supported by strong fundamentals and favorable market conditions. Others included One 97 Communications Ltd (Paytm), Siemens Ltd and Indian Hotels Company. These stocks offer compelling opportunities for capital appreciation, the brokerage said after analyzing their their fundamentals and technical charts.

Coforge: The brokerage recommended 'Buy' on the stock. It asked traders to buy Coforge at around Rs 7,300 apiece, for a target price of Rs 7,905, with the stop loss placed at Rs 7,025. The stock is near its all-time high with reduced volatility and improved strength against the Nifty50, it said.

"Coforge's order book grew 19 per cent YoY to $1,070 million, continuing a trend of strong quarterly intake. Coforge aims for a 50 bps EBITDA expansion in FY25 through cost efficiencies and increased offshoring. With a focus on AI and the Cigniti acquisition, the company is well-positioned for growth in healthcare, retail, and hi-tech sectors," StoxBox said.

HDFC Bank: StoxBox recommended traders to buy HDFC Bank at around Rs 1,615. It suggested a target price of Rs 1,725 and a stop loss of Rs 1586. The stock has retraced to its 100-DMA, indicating stability and potential for a technical pullback as the RSI approaches oversold levels, it said.

"The bank has improved productivity, increased deposits per branch, and reduced high-cost borrowings, enhancing liquidity and profitability while maintaining asset quality. New branches are expected to further support growth," StoxBox said.

LTIMindtree: Thew brokerage said LTIMindtree is a buy at around Rs 6,375 for a target price of Rs 6,925. One can keep the stop loss at Rs 6,143, it said,

On the technical front, the LTIMindtree stock indicated a trend reversal, with a rounding bottom pattern, reduced volatility, and strong momentum. Its outperformance against the Nifty adds to its attractiveness, StoxBox said.

"LTIM's robust AI presence supports client growth and multi-year contracts in key sectors like financial services and energy. Strategic partnerships and expansion into the Saudi Arabian market through a joint venture with Aramco Digital further boost its growth potential," the brokerage added.

Mahindra & Mahindra: For StoxBox, M&M is a buy at around Rs 3,135, as it is targeting Rs 3,400 on the counter, with a stop loss placed at Rs 2,995. The stock recently broke out from a rounding bottom pattern, indicating a trend reversal and strong investor interest. The volume activities suggest the participation of smart hands, which is a favorable signal, the brokerage said.

M&M plans to invest Rs 12,000 crore in EV expansion over the next three years and Rs 14,000 crore for future growth, positioning itself well for sustained profitability in the UV segment, StoxBox said.

One 97 Communications: StoxBox recommended Paytm at Rs 734 for a target of Rs 811. It suggested a stop loss at Rs 701. The stock is in a strong uptrend, showing higher highs and lows, strong buyer demand, and improved relative strength against the Nifty50.

"With 7.8 million monthly users, Paytm drives stable business through UPI payments and commerce services, enabling cross-selling opportunities. Revenue and profitability are expected to improve from Q2FY25, supported by GMV growth, an expanding merchant base, and cost optimization," it said.

Siemens: Siemens can be bought at Rs 7,600 for a target of Rs 8,292, StoxBox said as it asked traders to place a stop loss at Rs 7,292.

The stock is forming a Cup and Handle pattern, indicating a potential trend reversal, with strong volumes confirming a bullish breakout. The company is experiencing robust order growth in smart infrastructure, mobility, and energy, supported by increased government spending on infrastructure. Siemens is well-positioned to benefit from expanding markets in energy transmission and renewable energy, along with facility expansions to meet demand, StoxBox said.

Indian Hotels Company: StoxBox said IHCL is a a buy at Rs 686. It suggested a target of Rs 749 and a stop loss at Rs 662. As part of the Tata group, IHCL operates 310 hotels across various segments and is well-positioned to benefit from the expected 10-11% CAGR in India's hospitality market during FY2024-27.

"The company has shown strong performance with occupancy and average room rates exceeding pre-COVID levels. Despite recent profit booking, IHCL's stock demonstrates relative outperformance against the Nifty50, indicating a favorable outlook," it said.