NEW DELHI: Going it getting tougher for Dalal Street by the day. Rising oil prices, a falling rupee, surging US bond yields and now more political uncertainty following the BJP’s setback in Karnataka, which many say would unite opposition forces, making it harder for Modi to return in 2019.
Headline equity indices Sensex and Nifty shed 2 per cent each during the week gone by, registering their biggest weekly fall in 10 weeks. On Friday, the S&P BSE Sensex closed at 34,848, down 301 points or 0.86 per cent. The broader Nifty50 index of the National Stock Exchange (NSE) ended below the 10,600 level at 10,596, down 86 points or 0.81 per cent.
The market will be volatile in the short term on the back of political uncertainty, higher oil prices and weak global markets, says Hemang Jani, Head - Advisory, Sharekhan. “We continue to be positive on select counters such as financials and consumption with Bajaj Finance, Britannia, HUL and YES Bank being on our buy list,” he said..
Rupa & Company | BUY | Target Price: Rs 480 - Rs 495 | Stop loss: Rs 407
On the weekly chart, Rupa & Company is on the verge of a breakout from channel pattern placed at Rs 460. Breakout and sustained trade above this resistance can extend the uptrend. Further, on the daily chart, the stock has resumed its upward trajectory after breaking out from a bullish Flag. The RSI has turned upwards from the lower end of the bull zone i.e. 40 level, suggesting higher levels in the coming trading sessions.
Vaishali Parekh, Research Analyst, Technical Research, Prabhudas Lilladher
ITC | BUY | Target Price: Rs 305 | Stop loss: Rs 268
This stock has formed a higher bottom on the daily chart, taking support at the 50-day moving average and has made the chart look attractive. The RSI indicator has hit the oversold zone and has indicated a trend reversal to signal a buy. The overall long term trend has been maintained with a positive bias and with good decent volume participation seen, Parekh recommend a buy.
Britannia IndustriesNSE -0.41 % | BUY | Target Price: Rs 6,121 | Stop loss: Rs 5,335
Few days back, price and volume breakout was witnessed on the stock. Stock has been forming new lifetime highs continuously and showing good strength at the higher level. Price has been forming continuous higher tops and higher bottoms in all degrees which is a bullish continuation formation. Apart from this, price is in internals of “wave v”; so more upside room is pending. In addition 21-Day EMA is continuously providing support to the price, which is placed at the Rs 5,400 level.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Petronet LNG | BUY | Target Price: Rs 240 | Stop loss: Rs 200
This counter appears to have bottomed after sliding for seven months from the highs of Rs 275 as it registered a Price and Volume breakout after hitting a low of Rs 202 in Thursday’s session. Considering the volatility in the market and the huge single day gain witnessed in this counter, traders are advised to adopt a two-pronged strategy of buying now and on declines around Rs 211 for an initial target of Rs 240.
Kotak Mahindra Bank | BUY | Target Price: Rs 1,580 | Stop loss: Rs 1,257
This counter is moving in a well-defined ascending channel for last seven years with multiple touch points. Lifetime highs even in a turbulent market conditions is clearly suggesting the inherent strength present in this counter. Hence, if the same momentum continues then it shall head to much higher levels towards the upper boundary of the said channel whose value is present around the Rs 1,580 level.
Headline equity indices Sensex and Nifty shed 2 per cent each during the week gone by, registering their biggest weekly fall in 10 weeks. On Friday, the S&P BSE Sensex closed at 34,848, down 301 points or 0.86 per cent. The broader Nifty50 index of the National Stock Exchange (NSE) ended below the 10,600 level at 10,596, down 86 points or 0.81 per cent.
The market will be volatile in the short term on the back of political uncertainty, higher oil prices and weak global markets, says Hemang Jani, Head - Advisory, Sharekhan. “We continue to be positive on select counters such as financials and consumption with Bajaj Finance, Britannia, HUL and YES Bank being on our buy list,” he said..
Like Jani, many other analysts feel any dips in this market should be used for picking stocks.
Based on various brokerage recommendations, here are 10 stock ideas that they say can potentially deliver gains over the next three weeks.
Aditya Agarwala, Technical Analyst, YES Securities
Crompton Greaves | BUY | Target Price: Rs 272- Rs 285 | Stop loss: Rs 220
On the weekly chart, Crompton Greaves Consumer Electricals has taken support at the lower end of the Broadening Wedge pattern placed at Rs 223 and turned upwards. Further, a sustained trade above Rs 247 can extend the uptrend to levels of Rs 272-285. On the daily chart, the stock is on the verge of a breakout from a Triangle pattern suggesting higher levels in the coming trading sessions. On the weekly chart, the RSI has turned upwards after breaking out of the upper Bollinger Band affirming the strong bullishness dominant in the stock.
Based on various brokerage recommendations, here are 10 stock ideas that they say can potentially deliver gains over the next three weeks.
Aditya Agarwala, Technical Analyst, YES Securities
Eris Lifesciences | BUY | Target Price: Rs 875 - Rs 900 | Stop loss: Rs 710
On the weekly chart, Eris Lifesciences (ERIS) is on the verge of a breakout from a channel resistance line placed at Rs 820. A successful breakout and close beyond this resistance line with healthy volumes can extend the uptrend in the coming trading sessions. On the daily chart, it is trading above the 61.8 per cent Fibonacci retracement level affirming bullishness. The RSI has turned upwards after taking support at the previous support level of 34, indicating a range shift in favour of the bulls.
On the weekly chart, Eris Lifesciences (ERIS) is on the verge of a breakout from a channel resistance line placed at Rs 820. A successful breakout and close beyond this resistance line with healthy volumes can extend the uptrend in the coming trading sessions. On the daily chart, it is trading above the 61.8 per cent Fibonacci retracement level affirming bullishness. The RSI has turned upwards after taking support at the previous support level of 34, indicating a range shift in favour of the bulls.
Crompton Greaves | BUY | Target Price: Rs 272- Rs 285 | Stop loss: Rs 220
On the weekly chart, Crompton Greaves Consumer Electricals has taken support at the lower end of the Broadening Wedge pattern placed at Rs 223 and turned upwards. Further, a sustained trade above Rs 247 can extend the uptrend to levels of Rs 272-285. On the daily chart, the stock is on the verge of a breakout from a Triangle pattern suggesting higher levels in the coming trading sessions. On the weekly chart, the RSI has turned upwards after breaking out of the upper Bollinger Band affirming the strong bullishness dominant in the stock.
Rupa & Company | BUY | Target Price: Rs 480 - Rs 495 | Stop loss: Rs 407
On the weekly chart, Rupa & Company is on the verge of a breakout from channel pattern placed at Rs 460. Breakout and sustained trade above this resistance can extend the uptrend. Further, on the daily chart, the stock has resumed its upward trajectory after breaking out from a bullish Flag. The RSI has turned upwards from the lower end of the bull zone i.e. 40 level, suggesting higher levels in the coming trading sessions.
Vaishali Parekh, Research Analyst, Technical Research, Prabhudas Lilladher
ITC | BUY | Target Price: Rs 305 | Stop loss: Rs 268
This stock has been consolidating at Rs 280-285 levels and has maintained above the 34WMA moving average to indicate a positive bias and currently has shown a positive candle pattern in the daily chart to signify strength and potential to rise further in the coming days. With good consistent volume participation witnessed, Parekh recommends a buy rating on this stock for an upside target of Rs 305 keeping a stop loss of Rs 268.
Jubilant FoodWorksNSE 1.01 % | BUY | Target Price:- Rs 2,700 | Stop loss: Rs 2,390
Jubilant FoodWorksNSE 1.01 % | BUY | Target Price:- Rs 2,700 | Stop loss: Rs 2,390
This stock has formed a higher bottom on the daily chart, taking support at the 50-day moving average and has made the chart look attractive. The RSI indicator has hit the oversold zone and has indicated a trend reversal to signal a buy. The overall long term trend has been maintained with a positive bias and with good decent volume participation seen, Parekh recommend a buy.
Gajendra Prabhu, Technical Research Analyst at HDFC Securities
Bajaj Finserv | BUY | Target Price: Rs 6,300 | Stop loss: Rs 5,400
The stock has formed a new lifetime high and is in the progress of new rising leg. On weekly chart, inverted Head & Shoulder pattern breakout has been witnessed which is bullish development. Price is in internals of “wave v” so there is more room on the upside. In addition, the price has been forming higher tops and higher bottoms, it is a bullish continuation structure. So, the traders may look to buy the stock at CMP and add in dips to Rs 5,500 for the upside target of Rs 6,300 over the next 2-3 weeks.
Bajaj Finserv | BUY | Target Price: Rs 6,300 | Stop loss: Rs 5,400
The stock has formed a new lifetime high and is in the progress of new rising leg. On weekly chart, inverted Head & Shoulder pattern breakout has been witnessed which is bullish development. Price is in internals of “wave v” so there is more room on the upside. In addition, the price has been forming higher tops and higher bottoms, it is a bullish continuation structure. So, the traders may look to buy the stock at CMP and add in dips to Rs 5,500 for the upside target of Rs 6,300 over the next 2-3 weeks.
Britannia IndustriesNSE -0.41 % | BUY | Target Price: Rs 6,121 | Stop loss: Rs 5,335
Few days back, price and volume breakout was witnessed on the stock. Stock has been forming new lifetime highs continuously and showing good strength at the higher level. Price has been forming continuous higher tops and higher bottoms in all degrees which is a bullish continuation formation. Apart from this, price is in internals of “wave v”; so more upside room is pending. In addition 21-Day EMA is continuously providing support to the price, which is placed at the Rs 5,400 level.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Petronet LNG | BUY | Target Price: Rs 240 | Stop loss: Rs 200
This counter appears to have bottomed after sliding for seven months from the highs of Rs 275 as it registered a Price and Volume breakout after hitting a low of Rs 202 in Thursday’s session. Considering the volatility in the market and the huge single day gain witnessed in this counter, traders are advised to adopt a two-pronged strategy of buying now and on declines around Rs 211 for an initial target of Rs 240.
Kotak Mahindra Bank | BUY | Target Price: Rs 1,580 | Stop loss: Rs 1,257
This counter is moving in a well-defined ascending channel for last seven years with multiple touch points. Lifetime highs even in a turbulent market conditions is clearly suggesting the inherent strength present in this counter. Hence, if the same momentum continues then it shall head to much higher levels towards the upper boundary of the said channel whose value is present around the Rs 1,580 level.
Tech Mahindra | BUY | Target Price: Rs 748 | Stop loss: Rs 657
When the broader markets are under severe pressure, this counter appears to have picked up momentum as it posted a strong show on the last session of the week with a relatively higher volumes. Besides, a fully blossomed bullish candle on weekly charts is also pointing towards much higher levels to this counter going forward. Hence, positional traders can go long now and on declines around the Rs 670 level for a target of Rs 748.
When the broader markets are under severe pressure, this counter appears to have picked up momentum as it posted a strong show on the last session of the week with a relatively higher volumes. Besides, a fully blossomed bullish candle on weekly charts is also pointing towards much higher levels to this counter going forward. Hence, positional traders can go long now and on declines around the Rs 670 level for a target of Rs 748.
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