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NEW DELHI: Dalal Street has had a weak start to an extremely important week, that will see the unveiling of the Interim Budget, rollover of FO contracts, US Fed’s rate-setting meeting and some major earnings announcements.
The Finance Minister will present the Vote on Account to Parliament on February 1, Friday, for the first three months of the new financial year before the new government presents a full-fledged Budget in July.
The domestic stock market may have to endure bouts of volatility as January series futures options contracts expire on Thursday.
Then, earnings of some top companies like Axis Bank, Bank of Baroda, HDFC, HCL Technologies, Bharti Airtel, Hero MotoCorp, Bajaj Auto, ICICI Bank and State Bank of India are lined up.
The US Fed will hold its first monetary policy meet of 2019 on January 29-30.
Amid all the unpredictability, analysts see strong opportunities in select stocks.
Based on various brokerage recommendations, here is a list of 10 stocks that can potentially generate gains over the next 2-3 weeks.
Nagaraj Shetti, Technical Research Analyst, HDFC SecuritiesHCL Technologies | Buy | Target price: Rs 1,065 | Stop loss: Rs 905This stock was moving in a larger consolidation band in the last few weeks.
Recently, it made a failed attempt of moving above the upper consolidation area of Rs 980-990 levels.
Friday’s session saw emergence of buying interest on the counter at low levels amid volatility in the broader market.
Volumes rose during the upward move and weekly the momentum oscillator showed a positive momentum.
Havells India | Buy | Target price: Rs 775 | Stop loss: Rs 655This stock witnessed a sharp upward move last week, after showing gradual weakness in the previous few weeks.
The stock is currently making an attempt to break out on the upside from previous high at Rs 716.
The weekly 14-period RSI has turned up from above 60 level, which indicates that the strength in the upside momentum is increasing.
Mazhar Mohammad, Chief Strategist, Technical Research Trading Advisory, Chartviewindia.inDeepak Fertilizers | Buy | Target price: Rs 135 | Stop loss: Rs 104This counter appears to have registered a price and volume breakout from deeply oversold levels, as it saw a vertical fall to Rs 104 level from the recent high of Rs 147.
Friday’s strong comeback can be the beginning of a serious pullback.
In such a scenario, a target of Rs 138 can’t be ruled out going forward.
“Positional traders should adopt a two-pronged strategy of buying at current levels and shall prefer to add on lower levels further close to Rs 110 and look for a target of Rs 135 with a stop loss below Rs 104," Mohammad said.
Castrol India | Buy | Target price: Rs 179 | Stop loss: Rs 160Recent price behaviour on this counter looked interesting as there was a brief pause after the recent swift upward move from the low of Rs 151 to Rs 169 in just two sessions.
As this move is sustaining above the 200-day moving average in this consolidation phase, one can initiate long positions and look for initial targets of Rs 179 as long as this stock stays above the Rs 162 level.
Stop loss for this trade should be below Rs 160 on a closing basis.
Sameet Chavan, Chief Analyst, Technical Derivatives, Angel BrokingGodfrey Phillips India | Buy | Target price: Rs 1,020 | Stop loss: Rs 914Last three months have been fantastic for this high-beta stock.
The daily chart shows a series of ‘higher highs and higher lows’ and in the process, the stock has finally broken out of the trend line hurdle at Rs 930 with some authority.
Importantly, this move was supported by humongous volumes, providing credence to the price action.
Post this, the stock saw some consolidation but this can be a good buying opportunity.
Britannia Industries | Buy | Target price: Rs 3,460 | Stop loss: Rs 3,060This FMCG giant has been a steady performer since last many years.
“Of late, we witnessed a consolidation in this counter which can be termed as a ‘price correction’ and was overdue since a long time.
Last week, we saw some buying interest coming back into the stock and in the process; it has managed to surpass the ‘falling trend line’ placed around Rs 3,180,” the analyst said.
This is a sign of strength.
Going ahead, the stock is expected to resume its long term upward trend soon, he said.
Kaveri Seed Company | Buy | Target price: Rs 642 | Stop loss: Rs 564This stock has been consolidating of late and struggling to surpass its ‘falling trend line’ resistance at around Rs 580.
On Friday, despite the broader market remaining under severe pressure, this stock managed to buck the trend and in the process, went on to cross this hurdle; thereby confirming a breakout from the ‘bullish cup and handle’ pattern on the daily chart.
In addition, more than double the average daily volume on the same day provided credence to the move.
Vaishali Parekh, Senior Technical Analyst at Prabhudas LilladherIRB Infrastructure Developers | Buy | Target price: Rs 166 | Stop loss: Rs 140This stock has gradually slipped and corrected to Rs 142 level from the peak of Rs 169 and formed a bullish positive candle to make the chart look attractive.
The RSI has indicated a trend reversal and has signalled a buy rating to maintain the bias positive.
“With rising volume, we recommend a buy in this stock for an upside target of Rs 166, keeping a stop loss of Rs 140,” Parekh said.
Jubilant Foodworks | Buy | Target price: Rs 1,330 | Stop loss: Rs 1,150After the short erosion, this stock has taken support near the Rs 1,160 level where it had maintained a good base on previous occasions too, and has seen a bounce with a positive bias.
The RSI has shown a trend reversal to signify strength.
It has the potential to rise further, maintaining the same momentum in the coming days.
“With good volume participation, we recommend a buy rating in this stock for an upside target of Rs 1,330, keeping a stop loss of Rs 1,150,” Parekh said.
Kkunal Parar, Senior Research Analyst, Choice BrokingTata Consultancy Services | Buy | Target price: Rs 745-755 | Stop loss: Rs 690On the daily chart, this stock is on a verge of breaking out of its neckline of cup handle formation, which is a continuation formation and indicates robust upside.
Moreover, the stock has been trading with strong support from the 21-day and 50-day moving averages, which suggest a positive trend.
Daily momentum indicator RSI reading of 54.45 with a positive crossover and RSI breakout of its downward sloping trend line point out for a positive breadth for the stock.
(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com.
Please consult your financial advisor before taking any position in the stock/s mentioned.)
