NEW DELHI: Third time lucky! The bulls on Dalal Street came out with flying colours for the third week in a row, with both the headline indices shutting shop with handsome gains.
The S&P BSE Sensex added 565 points, or 1.68 per cent, for the week gone by to settle at 34,192, while the broader Nifty50 soared 149 points, or 1.44 per cent, to 10,480.
Sanjeev Zarbade, Vice-president for PCG Research at Kotak Securities, says: “The S&P BSE Sensex is seen closing firmly in the green with gains in excess of 1.5 per cent over the previous week to close above the 34,100 level. The rally was driven by easing concerns over the possibility of US-China trade war.”
While geopolitical tensions in Syria pushed up crude prices, domestic bond yields witnessed a sharp reversal. FPIs sold equities worth $172 million while DIIs bought stocks worth $469 million over the past five sessions.
Projection of a normal monsoon in CY2018, a pickup in the investment cycle, industrial capex and improving demand added to the positive news. However, election-related uncertainty, rising crude prices, tepid GST revenues and talks of global trade disruptions are key challenges, Zarbade said.
“In this backdrop, we expect FY2019 to be a volatile year for the Indian market. The investment themes we like include stocks dependent on rural demand, travel and leisure and consumer plays,” he said.
Based on various brokerage recommendations, here are 12 stock strategies that can potentially deliver gains over the next three weeks.
Nandish Shah, Technical/Derivative Analyst at HDFC Securities
Surya Roshni | BUY| Target Price: Rs 450 | Stop loss: Rs 405
Surya Roshni saw a bullish trendline breakout on Friday by closing above the downward sloping trendline, adjoining the highs of February 9, 2018 and April 4, 2018. The stock is currently trading above its 20, 50, 100 and 200 SMA, which indicates bullish setup for medium to long term charts. The momentum indicators and oscillators are showing strength on the counter.
Genus Power | BUY| Target Price: Rs 62 | Stop loss: Rs 53
After forming a double-bottom around the Rs 49-odd level, Genus Power reversed northwards to close at one month high on Friday with higher volumes. Few oscillators like RSI and KST have formed positive divergence during March. This means price levels were making lower bottoms and oscillators were making higher bottoms, indicating that dominance of bears were gradually going down. The stock price is currently trading above its 5 and 20 DMA indicating bullish trend for the short term.
Vaishali Parekh, Research Analyst, Technical Research, Prabhudas Lilladher
Escorts | BUY | Target Price: Rs 1,050 | Stop loss: Rs 905
This stock has been consolidating for quite a while around the Rs 922 level, where there was a strong resistance and currently has given a breakout above that level of Rs 922. It signifies strength and potential to rise further in the coming days. Also, the RSI has given a trend reversal to signal a buy in the stock. The chart looks attractive and with consistent volume participation witnessed, we recommend a buy in this stock.
Rashtriya Chemicals & Fertilizers | BUY | Target Price: Rs 90 | Stop loss: Rs 77
This stock has witnessed a decent correction from the peak of Rs 111 and has bottomed out at around Rs 72 levels to form a more or less double bottom formation pattern in the daily chart. It has seen a bounceback and indicated a breakout above the 50-DMA and the previous peak level of Rs 81.50 to signify a positive bias and strength to move further upwards in the coming days.
Aditya Agarwala, Technical Research Analyst, Yes Securities
Persistent Systems | BUY | Target Price: Rs 770-Rs 800 | Stop loss: 640
On the weekly chart, Persistent Systems has turned upwards after taking support at the lower end of the channel suggesting bullishness. A sustained trade above Rs 710 with healthy volumes can take it higher to levels of Rs 770-Rs 800. On the daily chart, the stock has resumed upward journey after forming a double bottom suggesting higher levels in the coming trading sessions. RSI has formed a positive reversal confirming the bullishness.
Swati A Hotkar, Equity Technical Analyst – Research, Nirmal Bang Securities
Gufic Biosciences | BUY | Target Price: Rs 135-Rs 140 | Stop loss: Rs 115
The weekly chart indicates that stock has given the multiple resistance breakout of the Rs 120 level with good volumes. The stock is holding the strong momentum on upside and it is likely to extend its rally towards Rs 140 level. Momentum indicators such as RSI show a positive crossover.
Intellect Design Arena | BUY | Target Price: Rs 185 | Stop loss: Rs 164
Daily line chart indicates that stock has given the double top breakout of Rs 171-Rs 172 with good volumes. Momentum indicators such as RSI show a positive crossover. One may take a buy call for a target of Rs 185 with a strict stop loss at Rs 164.
Jamna Auto Industries | BUY | Target Price: Rs 96 | Stop loss: Rs 82
The weekly chart indicates that the stock has seen a breakout from the consolidation at Rs 82 level with good volumes. The stock is holding the strong momentum on upside and its likely to extend its rally towards Rs 96-100 levels. Momentum indicators such as RSI shows a positive crossover.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Ashok Leyland | BUY | Target Price: Rs 167 | Stop loss: Rs 142
This counter is in a strong uptrend and appears to have resumed its rally post multi-week consolidation it slipped into after hitting a new lifetime highs in the month of turbulent March. Hence, as long as this counter sustains above Rs 143, one can look for a higher target of Rs 167 with a stop of Rs 142.
ACC | BUY | Target Price: Rs 1,650 | Stop loss: Rs 1,495
At a recent low of Rs 1,498, this counter appears to have registered a bottom as it tested major support on long term charts. Besides, it has retraced 62 per cent of its last leg of rally from the lows of Rs 1,498–Rs 1,576 and appears to have posted a higher bottom around Rs 1,520 from where it can resume its uptrend. In such a scenario it can eventually head higher to test its-200 Day Moving Average whose value is placed around Rs 1,656 level.
Godrej Industries | BUY | Target Price: Rs 615 | Stop loss: Rs 550
This counter is moving in a downward sloping channel with multiple touch points for almost nine months now, and appears to have decisively cleared its critical near term resistance point of Rs 555 levels. Hence, sustaining above this level it should ideally head towards the upper boundary of the said channel whose value is placed around Rs 617.
Milan Vaishnav, CMT, MSTA
Dalmia Bharat | BUY | Target Price: Rs 2,970 | Stop loss: Rs 2,780
After peaking out in December 2017, this stock has remained under corrective downtrend. Over the past couple of weeks, it has seen some attempt to bottom out after consolidating in the Rs 2,600-Rs 2,800 levels. The stock has attempted to move past 200-DMA. RSI remains neutral but is seen marking higher bottoms and move higher. MACD is seen moving towards positive crossover. A fresh buy signal over Stochastic has emerged with a bullish divergence against the price. The stock is likely to see an extended pullback over coming days.
DHFL | Buy | Target Price: Rs 570 | Stop loss: Rs 536
The stock has taken a minor double bottom support in the Rs 470-Rs 480 zones and has attempted to form a potential bottom again. It has managed to close a notch above its 200-DMA and is seen breaking out from a pattern resistance. RSI has marked a fresh 14-period high which is bullish. RSI is also seen breaking out of a pattern formation which is a strong sign. MACD remains in continuing buy mode. Upward revision in price over coming days cannot be ruled out.
(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.)
Source: Economic Times