Based on various brokerage recommendations, check out the 15 stock strategies that can potentially deliver solid gains over the next 7-21 sessions.The bulls and the bears continued to fight hard through this past week to get a grip on the market. For the week ended September 8, 2017, NSE’s Nifty index closed at 9,934, down 0.40 per cent from its September 1 closing of 9,974.
The BSE Sensex closed 0.64 per cent down at 31,687 on September 8.
Brokerage Sharekhan said the momentum indicator on the weekly chart was bearish. The Nifty50 has crucial support at 9,448 and 9,300 levels while it faces resistance at 10,350 and 10,960.
“From a medium-term perspective, the trend remains bullish and any dip will be buying opportunity as long as the Nifty50 trades above the 40-week exponential moving average (WEMA), which is currently pegged at 9,300,” the brokerage said.
Based on various brokerage recommendations, here are 15 stock strategies that can potentially deliver solid gains over the next 7-21 sessions:
Analyst: Sagar Doshi, Technical Analyst, Edelweiss Investment Research
Petronet LNG |Buy | Target price: Rs 245 | Stop loss: Rs 214
After a breakout towards a new high, this stock has seen some consolidation. The long-term trend of the stock is upward and it is currently resting near its support at the 20DMA. The RSI and MACD are supporting its bullish momentum.
Hindustan Zinc | Buy | Target price: Rs 335 | Stop loss: Rs 292
This stock has been underperforming the metal pack over the past 3-4 months, but it has witnessed some momentum recently and saw a breakout. The RSI and MACD are trending strongly in the bullish zone and a new high could be a possibility before the expiry of the ongoing series of F&O contracts.
Analyst: Milan Vaishnav, CMT, Technical Analyst, Gemstone Equity Research and Advisory
Larsen & Toubro |Buy| Target price: Rs 1,250 | Stop loss: Rs 1,140
This stock has been trading in a rectangle formation over the past couple of months and is attempting a likely breakout. Volumes have been higher than average, which is a bullish indication. The weekly MACD is moving towards a positive crossover. There is a continuing buy signal on the Stochastic on both daily and weekly charts.
Bajaj Corporation | Buy | Target price: Rs 430 | Stop loss: Rs 375
A fresh buy signal has emerged over the Stochastic on the weekly chart, which is a very bullish indication. The daily MACD remains in continuing buy mode. The RSI has made a higher low and shows a bullish divergence against price. An upward revision in prices is likely over the next few days.
Cummins India | Buy | Target price: Rs 955 | Stop loss: Rs 890
The MACD has reported a positive crossover and it remains in a continuing buy mode. A potentially bullish candle has emerged. It is a bullish signal as it has emerged near the strong support area of 200-DMA. A buy signal over the Stochastic can further add to the strength. An uptick in prices can be expected over the coming days.
Brokerage: SMC Investments and Advisors
Exide Industries | Buy | Target price: Rs 245 | Stop loss: Rs 205
This stock has formed the ‘Bullish Flag’ formation on the weekly charts and given a breakout above the falling trend line. This formation is seen as a continuation pattern. A positive divergence in the secondary indicators such as RSI and Stochastic is also supporting the next upward move likely in the coming sessions. “One can buy in the range of Rs 215-220 levels for the upside target of Rs 245 levels with a stop loss below Rs 205,” the brokerage said.
Karur Vysva Bank | Buy | Target price: Rs 165 | Stop loss: Rs 135
After rising sharply from Rs 110 to Rs 145, this stock has seen consolidation in the Rs 130-145 range. On the weekly charts, it has made bullish flag formation and seen a fresh breakout above Rs 145. Moreover, a divergence in RSI and Stochastic is indicating positive moves going forward. Traders can accumulate the stock in the Rs 145-150 range for a target of Rs 165 with a stop loss below Rs 135.
Analyst: Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Muthoot Finance | Buy | Target price: Rs 550 | Stop loss: Rs 443
After moving in a sideways band over the past many weeks, this stock has seen a sharp upward move this week and closed near the upper end of a range. On the larger timeframe charts, the stock is making an attempt to stage a breakout on the upside from the sideways range of around Rs 480 level, said Shetti. Volume has expanded during upside breakout, and the momentum oscillator is showing positive signal. The overall positive chart and momentum pattern are indicating a long trade setup for the stock price for the near term.
“One may look to buy Muthoot Finance at current market price and add more on dips around Rs 461, for the upside target of Rs 550 over the next 3-4 weeks. Place a stop loss at Rs 443,” he said.
PNB Housing Finance | Buy |Target price: Rs 1820 | Stop loss: Rs 1,510
The weekly timeframe chart of this housing finance company is indicating a larger sideways band for the stock price over the past couple of months. At present, the stock is making an attempt to stage a breakout on the upside from this pattern around the Rs 1,600 mark. “The intermediate term is positive, as we observe a positive sequence of higher tops and bottoms over the past 6-7 months, which is bullish indication,” the analyst said.
The weekly 14-period RSI is above the 65 mark, which is signalling strength in the upside momentum from here on. The overall positive pattern in PNB Housing Finance is showing an opportunity for long trade. “Buying can be initiated at CMP and add more on dips around Rs 1,550 for the upside target of Rs 1,820 for the next 3-4 weeks. One should place a stop loss at Rs 1,510,” the brokerage said.
Vaishali Parekh, Head of Technical Desk, Prabhudas Lilladher
GNA Axles | Buy | Target price: Rs 320 | Stop loss: Rs 280
This stock has formed a higher bottom like pattern on the daily chart at around Rs 254 and has significantly pulled back to reach the Rs 298 level. It is showing potential and strength to give a breakout above the Rs 299 level, which was the previous peak.
The RSI has been on the rise and indicating further up move in coming days. “With good activity witnessed on the counter, we recommend a positional buy for an upside target of Rs 320 keeping a stop loss of Rs 280,” the analyst said.
Supreme Petrochem | Buy | Target price: Rs 425 | Stop loss: Rs 360
This stock has witnessed a decent correction from the levels of Rs 420 to make a bottom at around Rs 322 level and has picked up significantly from thereon. We anticipate still further rally and upward movement in coming days to scale the previous peak of Rs 420 and give a breakout.
The RSI has been strong and on the rise with potential to appreciate further. “With good volume participation and activity going on, we recommend a buy in this stock for an upside target of Rs 425 keeping a stop loss of Rs 360,” she said.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Titan | Buy | Target price: Rs 667 | Stop loss: Rs 605
After hitting a lifetime high of Rs 651 last week, this counter is in a corrective and consolidation process. “One should make use of this opportunity to create fresh long positions and prices and on declines up to Rs 618 for a target of Rs 667 with a stop loss at Rs 605,” Mohammad said.
Bharti Airtel | Buy | Target price: Rs 429 | Stop loss: Rs 390
At its recent low of Rs 395, this counter retraced 50 per cent of its last leg of rally from the low of Rs 360-438. It appears to have resulted in a short-term bottom from where a trading bounce is possible. “We recommend positional traders to make use of this opportunity and go long for a target of Rs 429 with a stop of Rs 390,” Mohammad said.
Vikas Jain, Senior Research Analyst, Reliance Securities
HCL Technologies | Buy | Target price: Rs 950 | Stop loss: Rs 820
HCL Technologies is consolidating around its lower band of the rising channel, where its long-term moving average has worked as a key reversal point and saved the stock from falling further. “Key technical indicators are also near to their reversal points and in favour of a probable rebound on the counter,” Jain said.
NTPC | Buy | Target price: 185 | Stop loss: Rs 162
NTPC reversed after taking support of its long-term moving averages and managed to give a breakout from the intermediate falling trend line. Due to recent recovery in the price, the key technical indicator-RSI reversed from sub-50 mark and given positive cross-over, signalling strength in 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 adviser before taking any position in the stock/s mentioned.)