NEW DELHI: The bulls had an upperhand last week, mainly driven by upbeat corporate earnings.
On Friday, the BSE Sensex rallied 290 points to settle at 35,535. NSEs 50-share Nifty pack reclaimed the crucial 10,800 level to end at 10,806, up 90 points or 0.84 per cent.
On a weekly basis, both gained 1.77 per cent each.
The cloud of Karnataka poll results is still hanging. It may add some volatility to the market although technical charts signal further upside potential.
The Nifty is likely to inch higher towards Rs 10,910. On the way down, 10,690 will provide support in the near term. Overall, we have a bullish outlook on the index for the short term with a target Rs 10,910 and reversal placed at Rs 10,500, says Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.
Based on various brokerage recommendations, here are 10 stock strategies that can potentially deliver gains over the next three weeks.
Jay Purohit – Technical & Derivatives Analyst, Centrum Broking
Tech Mahindra | BUY | Target Price: Rs 700–715 | Stop loss: Rs 646
TechM has given a breakout in second week of April and rallied sharply. However, it started moving in a corrective phase from last three weeks. The correction seems to be over as the stock is rebounding after retesting the Breakout Trendline, which also coincides with the SuperTrend indicator on daily chart. Since the momentum oscillator RSI is placed positively along with the set of moving averages on daily timeframe, we are expecting a rally towards Rs 700–715 in coming days. Thus, any decline towards Rs 655 should be used as a buying opportunity with a stop-loss of Rs 646.
GAIL | BUY | Target Price: Rs 375–385 | Stop loss: Rs 325
The 200 EMA on daily chart and 55 EMA on weekly chart acted as a strong support for the stock in the last couple of years. Recently, the stock has again taken the support around the mentioned moving averages and started rebounding. The consolidation of last ten weeks has resulted in formation of an Inverse Head & Shoulder pattern on daily chart.
On Monday, we witnessed a breakout from the mentioned pattern with decent volumes. Looking at these technical evidences, we are expecting a rally towards 375–385 levels in coming 2-3 weeks. Thus, long positions can be taken at the current juncture as well as on declines to Rs 335 with a stop-loss of Rs 325.
Subash Gangadharan, Technical/Derivative Analyst at HDFC Securities
ICICI Bank | BUY | Target Price: Rs 355 | Stop loss: Rs 290
ICICI Bank is one of the strongest stocks in the market currently. This week, the stock broke out of the Rs 274-295 trading range on the back of above average volumes. The stock also trades above the 13-day and 50-day SMA. Daily and weekly momentum readings are in rising mode and not extremely overbought.
Hindustan Oil Exploration | BUY | Target Price: Rs 155 | Stop loss: Rs 121
Hind Oil Exploration has rallied smartly and broken above its recent highs of Rs 129.2 in the process. The stock also trades above the 13-day and 50-day SMA. Daily momentum readings are in rising mode and not extremely overbought.
Vaishali Parekh, Research Analyst, Technical Research, Prabhudas Lilladher
BPCL | BUY | Target Price: Rs 450 | Stop loss: Rs 375
The stock has witnessed a decent erosion from the peak of around Rs 545 and has bottomed out at around Rs 375 levels, consolidating for some time to see a positive bias developing and producing a bullish candle pattern in daily chart. The chart looks attractive for a decent rise from here on, with the RSI indicating a trend reversal recently and also the MACD showing a positive trigger for an upmove. With rising volume participation witnessed, we recommend a buy in this stock.
Bajaj Finance | BUY | Target Price: Rs 1,975 | Stop loss : Rs 1,800
The stock has gradually corrected from its peak of Rs 1,960 to give a bottoming out indication at around Rs 1,820 levels and currently a positive bullish candle pattern indicates an uptrend with a positive bias. RSI is showing a trend reversal to signal a buy. The stock has maintained above the significant 50DMA and we anticipate a rise from here on to scale till Rs 1,970 levels.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Nestle | BUY | Target Price: Rs 10,600 | Stop loss: Rs 8,900
With new life time highs, this counter appears to be on the verge of a fresh breakout above its 3-month old ascending channel, which can throw up a target placed around Rs 10,600 levels. Hence, positional traders shall make use of this opportunity to go long at current prices and accumulate further between Rs 9,200–9,100 levels if available for a target of Rs 10,600 with a stop loss of Rs 8,900.
Firstsource Solutions | BUY | Target Price: Rs 78 | Stop loss: Rs 63
With a fresh breakout on price and volume front after recent results, this counter looks poised to head much higher levels. Hence, traders should make use of current consolidation phase to buy now and accumulate at lower levels on declines up to Rs 65 for a target of Rs 78.
NIIT | BUY | Target Price: Rs 121 | Stop loss: Rs 103
After the recent surge from the lows of Rs 84, this counter is in a multi-week corrective and consolidation phase and appears to have hit a bottom after testing its 50-day EMA in last session. Hence, positional traders can create longs with a stop below Rs 103 on closing basis for a target of Rs 121.
Milan Vaishnav, CMT, MSTA
Emami | BUY | Target Price: Rs 1,125 | Stop loss: Rs 1,018
In the recent past, the stock has grossly underperformed not only the general markets but also the FMCG pack. After resisting near the confluence of 100-DMA and 200-DMA, the stock has attempted to find a temporary bottom near the Rs 1,030-1,050 zones. Though this may not signal the reversal of trend, a technical pullback is likely.
RSI has just moved above 30 from an oversold situation and this is bullish. On Weekly Charts, RSI forms a higher bottom and is seen reversing. A candle with a long lower shadow resembling a not-so-classical hammer has emerged on weekly charts. It has emerged near the support area of 200-period Moving Average and therefore, holds significance. It is also confirmed by higher than average volumes. Some upward revision of price can be expected in this stock.
Coal India | BUY | Target Price: Rs 285 | Stop loss: Rs 262
For the last couple of months, the stock has not made any major headway and is trading in a broad range of Rs 262- 299 zones. The stock has tested the lower support level of this trading range and looks for a technical pullback. A buy signal over stochastic has emerged with a bullish divergence against the price. RSI has just moved above the oversold area and this is bullish. We might see stock staging a technical pullback even if it continues to remain in the present broad trading range.
(Views and recommendations given in this article are the analysts own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
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