2 heavy electrical equipment stocks to buy for good short-term gains

Hitachi Energy

This is a small cap script. The company, formerly known as ABB Power Products and Systems India Limited, is a power technology company. The Company’s power grid business includes grid automation, grid integration, high voltage products and transformer.

For the certificate, HDFC Securities gave a target of Rs. 3700 and considering the LTP of the certificate of Rs. 3274.45, this amounts to gains of 13%.

The rationale or observation on the stock as given by the brokerage is as follows:

Remember here as this is a short term bet the suggested stop loss is 2900

Stock’s main trend is positive as it is trading above its 100 and 200 day moving averages.

The stock price broke out on the daily chart with higher volumes.

The stock’s short-term trend has turned positive as it trades above its 5- and 20-day EMA.

Momentum oscillators like RSI and MFI are in ascending mode and placed above 60, indicating strength in the
current uptrend

Given the technical evidence discussed above, we recommend buying POWERINDIA at the CMP of 3278 and averaging at 3020 for the upside target of 3700, keeping a stop-loss at 2900

    Schneider-Electric

Schneider-Electric

This is again a small script. The Company is engaged in the field of power distribution products and systems. The Company’s products include transformers, equipment, components, loop main units, autoreclosers and automation.

For the S&P BSE small cap stock, the brokerage has set a target of Rs. 125 to be achieved in 1-3 months and the suggested stop loss is Rs. 89 per share.

Stock Observations

Stock Observations

This action, the brokerage is recommended as a choice of MTF funding or marginal trading

The stock has found support near its previous lows and is rising from there creating a higher bottom formation.

The stock also broke above the descending trendline (highlighted in blue), indicating that the uptrend may extend towards the intermediate top.

The stock is trading above 21 EMA and all major momentum oscillators are showing positive indications.

Based on the technical data presented above, we advise to buy SCHNEIDER at the CMP of 103.10 and on average at 94 for bullish targets of 112 and 125, with
a stop loss of 89.