INSUBCONTINENT EXCLUSIVE:
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
A formation of bullish reversal candlestick pattern like a hammer of previous session is indicating a possibility of a more upside in the
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
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.
