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NEW DELHI: After logging gains in last two consecutive sessions, domestic equity indices took a pause, as it opened in the red on Monday amid mixed global cues.
Optimism around healthy macroeconomic numbers and government's measures to arrest the fall in the rupee and keep a check on current account deficit did not help lift the mood of the market.
Analysts have advised caution.
A HDFC Bank report said the government measures to support the rupee may not drive overseas inflows and are a negative from a longer-term perspective, as they would increase short-term debt.
In a separate report, global brokerage conglomerate Credit Suisse said Indian equities have run well ahead of fundamentals and investors should book profit given the stretched valuations.
The week ahead is going to be a truncated one.
Equity, commodity and forex markets will remain closed on Thursday on account of Muharram.
Macroeconomic triggers, global cues and rupee movement will be the key factors, influencing market movement through the week.
While the outlook for the broader market remains uncertain, analysts see stock-specific opportunities across sectors.
Based on various brokerage recommendations, here are top 10 stocks that are expected to log gains over the next three weeks.
Nagaraj Shetti, Technical Research Analyst, HDFC SecuritiesBiocon| Buy| Target price: Rs 725| Stop loss: Rs 620The stock has been on an upmove in last few weeks, and had moved up as per the positive sequence of higher tops and bottoms.
The short-term downward correction in the stock price seems to be over, as the stock price has reversed up from the short term lows since last session.
A formation of bullish reversal candlestick pattern like a hammer of previous session is indicating a possibility of a more upside in the stock price.
Weekly momentum oscillator 14-period RSI is also showing positive indication.
One may look to buy Biocon at current market price to Rs 663.40 and add more on dips down to Rs 635 for the upside target of Rs 725 over next 2-3 weeks.
Eicher Motors| Buy| Target price: Rs 31,700| Stop loss: Rs 27,950This auto stock has been moving in a larger consolidation pattern.
Chart patterns of last 5-7 weeks signalled the formation of ascending triangle type pattern.
This triangle pattern is a bottom reversal pattern and the upside breakout point is at Rs 29,400 level.
A sustainable upside breakout of hurdle could have a sharp positive impact on the stock price ahead.
Volume and momentum oscillators are supporting a long trading opportunity.
Buying can be initiated at CMP (Rs 29,369), add more on dips down to Rs 28,500, hold for the upside target of Rs 31700 in the next 3-4 weeks.
Vaishali Parekh, Senior Technical Analyst, Prabhudas Lilladher Asian Paints| Buy| Target price: Rs 1,440| Stop loss: Rs 1,280This stock has made a higher bottom formation like pattern in the daily chart and looks very attractive with a decent bounce back to signify strength and potential to rise still further upward in the coming days.
The RSI has also hit the oversold zone and has shown a trend reversal to maintain a positive bias.
"With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 1,440, keeping a stop loss of Rs 1,280,” Parekh said.
Voltas| Buy| Target price: Rs 675| Stop loss: Rs 575This stock has indicated a higher bottom formation pattern in the daily chart taking support at the 50DMA moving average which lies near 575 levels and has given a decent bounce back to indicate a breakout above the significant 200DMA moving averge to signify strength and potential to carry on the momentum still further upward.
The RSI also shown a steep rise with a trend reversal and has signaled a buy with a positive bias.
"With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 675 keeping a stop loss of Rs 575," Parekh said.
Mazhar Mohammad, Chief Strategist – Technical Research Trading Advisory, Chartviewindia.inBrigade Enterprises| Buy| Target price: Rs 223| Stop loss: Rs 193After a prolonged correction, this counter appears to be on a sustainable pullback mode as it has been registering higher tops and higher bottom kind of structure on lower time frame charts.
As it registered a Bullish Engulfing kind of pattern on daily charts one can safely presume that recent downswing from Rs 220 – 195 might have ended paving the way for extention of pull back rally.
Ambuja Cements| Buy| Target price: Rs 245| Stop loss: Rs 216This counter appears to have formed a strong base around 218 levels from the cushion which it can register a decent appreciation.
Hence, positional traders can buy into this counter now and on declines around the Rs 225 level for a target of Rs 245.
Stop suggested for the trade is Rs 216.
Jayshree Tea Industries| Buy| Target price: Rs 107| Stop loss: Rs 92Of late the tea counter has been buzzing across the board as swift upmove on higher volumes is being witnessed in recent past.
As this counter appears to have started fresh leg of upswing after seeing a decent correction of its three-day swift upward move from the lows of Rs 81 – 108 in just three sessions it can be initially expected to head towards the Rs 108 level once again.
Aditya Agarwala, Technical Analyst, YES Securities (India)Muthoot Finance | Buy | Target price: Rs 485-500 | Stop loss: Rs 440On the weekly chart, Muthoot Finance has broken out from a Triangle pattern triggering resumption of an uptrend.
On daily chart, it is on the verge of a breakout from a Flag pattern indicating higher levels in the coming trading sessions.
Stock can be bought in the Rs 454-456 range for targets of Rs 485-500, keeping a stop loss below Rs 440.
Syngene International | Buy | Target price: Rs 670-720 | Stop loss: Rs 590On the weekly chart, Syngene International is approaching neckline of an Ascending Triangle pattern placed at Rs 670; successful breakout from the neckline can resume the major bull trend.
Further, on the daily chart it has broken out of a sideways consolidation pattern indicating higher levels in the coming trading sessions.
RSI has turned upwards from the 45-level i.e.
lower end of the bull zone after forming a positive reversal suggesting higher levels in the coming trading sessions.
Stock can be sold in the range of Rs 620-623 for targets of Rs 670-720, keeping a stop loss below Rs 590.
Rajesh Palviya- Head, Technical and Derivatives, Axis Securities.Jindal Steel and Power| Buy | Target price: Rs 242-245 | Stop loss: Rs 220On the daily chart, the stock price has formed an "Ascending Triangle" breakout.
This breakout is accompanied with a huge spurt in volumes which supports bullish sentiments ahead.
The daily and weekly strength indicator RSI and the momentum indicator Stochastic both are in the positive terrain which supports upside momentum to continue in the near term.
The stock is well placed above its 20, 50 and 100-day SMAs, which support bullish sentiments ahead.
One can buy Jindal Steel in the range of Rs 230-225 for targets of Rs 242-245, keeping a stop loss at Rs 220.
