It has been a good year for Dalal Street. As investors gear up for the special, one-hour 'Muhurat' trading session this Diwali on November 4, brokerages have shared their top recommendations to make most of Samvat 2078 - the year that begins on the day of Diwali.
From Diwali 2020 to Diwali 2021, the 30-strong Sensex index has given a return of close to 40 percent, breaking a chain of records along the way in a liquidity-driven run.
Analysts say optimism on the long-term prospects of the economy has propelled the headline indices journey to new heights, however near-term challenges in the form of high valuations, supply constraints and high input costs remain.
Here are analysts' top stock picks for Diwali 2021:
HDFC Securities
The brokerage has recommended accumulating six technical picks from a one-year perspective:
| Stock | Recommendation price | Buying range | Average level | Target 1 | Target 2 | Stop loss |
| Bharat Petroleum | 419.4 | 415-425 | 370 | 490 | 540 | 345 |
| Federal Bank | 97.65 | 97-99 | 89 | 115 | 122 | 82.6 |
| GRSE | 219.25 | 219-221 | 200 | 258 | 285 | 185 |
| Heritage Foods | 523.15 | 515-535 | 470 | 605 | 670 | 430 |
| Manappuram Finance | 207.8 | 207-212 | 180 | 247 | 268 | 170 |
| UPL | 740.2 | 740-749 | 670 | 851 | 910 | 629 |
| Stock | Return (%) | |
| Target 1 | Target 2 | |
| Bharat Petroleum | 17 | 29 |
| Federal Bank | 18 | 25 |
| GRSE | 18 | 30 |
| Heritage Foods | 16 | 28 |
| Manappuram Finance | 19 | 29 |
| UPL | 15 | 23 |
Geojit Financial Services
The brokerage recommends 12 stocks this Diwali, spanning spaces such as chemicals, pharmaceutical, banking, FMCG, gas and media. It has recommended a Diwali portfolio estimated at Rs 46,346:
| Sector | Mix | Stock | No. of shares | Approximate value (in rupees) |
| Chemicals | 9% | Aarti Industries | 4 | 4,000 |
| Pharma | 11% | Divi's Laboratories | 1 | 4,997 |
| Banking | 7% | HDFC Bank | 2 | 3,314 |
| Life insurance | 7% | HDFC Life Insurance Company | 5 | 3,416 |
| FMCG | 5% | Hindustan Unilever | 1 | 2,456 |
| Gas | 10% | Indraprastha Gas | 10 | 4,687 |
| Online diversified | 13% | Info Edge | 1 | 5,947 |
| Information | 11% | Infosys | 3 | 5,123 |
| Technology | 13% | Tata Elxsi | 1 | 5,800 |
| Auto ancillary | 3% | Minda | 2 | 1,565 |
| Online food | 7% | Zomato | 25 | 3,315 |
| Media | 4% | PVR | 1 | 1,727 |
Motilal Oswal
The brokerage has handpicked five technical and derivatives calls for the next 2-3 months, with an upside potential of 19-3 percent:
| Stock | Buying range | Stop loss | Target | Upside potential (%) |
| SBI | 503-490 | 450 | 600 | 19 |
| L&T | 1,792-1,760 | 1,600 | 2,200 | 23 |
| Trent | 1,050-1,030 | 950 | 1,250 | 19 |
| Bata | 2,022-1,980 | 1,800 | 2,450 | 21 |
| Tech Mahindra | 1,517-1,480 | 1,350 | 1,850 | 22 |
Derivatives data observation
Yes Securities
The brokerage has recommended 12 stocks with an upside potential of 32-55 percent from a 12-month perspective:
| Stock | Recommended Price | Target price | Upside Potential (%) |
| Prince Pipes | 704 | 1,091 | 55 |
| Greenpanel Industries | 319 | 470 | 47 |
| Apollo Pipes | 1,668 | 2,250 | 35 |
| Acrysil | 700 | 995 | 42 |
| Dalmia Bharat | 1,886 | 2,640 | 40 |
| IndiaMart | 7,324 | 10,200 | 39 |
| PNC Infra | 331 | 460 | 39 |
| Polycab | 2,338 | 3,300 | 41 |
| ICICI Bank | 842 | 1,112 | 32 |
| Gland Pharma | 3,726 | 4,925 | 32 |
| SBI Cards | 1,130 | 1,625 | 44 |
| Crisil | 2,887 | 4,460 | 54 |
IDBI Capital
The brokerage has recommended 11 stocks with an upside potential of 28-52 percent:
| Stock | Target | Upside potential (%) |
| Max Healthcare Institute | 475 | 43 |
| Valiant Organics | 2,170 | 52 |
| CCL Products | 510 | 43 |
| Surya Roshni | 950 | 40 |
| Route Mobile | 2,460 | 28 |
| DLF | 580 | 45 |
| SBI Cards | 1,460 | 29 |
| Federal Bank | 135 | 32 |
| Sona Comstar | 905 | 50 |
| Maruti Suzuki | 10,100 | 39 |
| HDFC Life | 980 | 43 |
Samco Research
Samco has suggested investing in 10 stocks as part of its "Diwali rocket portfolio", which it believes has a potential upside of 15 percent.
These stocks are Metropolis, Asian Paints, ICICI Lombard, CAMS, Dabur, Rossari Biotech, HDFC Bank, Affle India, Relaxo Footwear and LIC Housing Finance.
CapitalVia
The brokerage recommends nine stocks this Diwali:
| Stock | Entry price | Buy on dip | Target | Stop loss |
| KPR Mill | 460 | 420 | 540 | 390 |
| Manappuram | 200 | 180 | 250 | 155 |
| J&K Bank | 40 | 30 | 60 | 22 |
| Kotak Mahindra Bank | 2,200 | 2,060 | 2,470 | 1,980 |
| DMart | 4,700 | 4,200 | 5,950 | 4,000 |
| KEC International | 550 | 515 | 660 | 480 |
| Mindtree | 4,482 | 4,213 | 5,378 | 4,033 |
| ONGC | 162 | 152 | 193 | 145 |
| Gujarat Alkalies & Chemicals | 684 | 643 | 816 | 616 |
(Edited by : Sandeep Singh)
First Published: Nov 3, 2021 1:16 PM IST
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