The domestic equity market came under pressure in Monday’s session following a spike in crude oil prices in international markets. Sensex tanked 250 points while Nifty slipped below the psychologically important 11,000 mark before paring some of the losses.
RelianceNSE 6.39 % Securities said Indian equities are particularly sensitive to changes in crude prices and USD-INR. Both opened adversely on Monday morning. “We expect incremental pain as the day progresses. If selling pressure takes Nifty50 below 10,950, it is likely to trigger panic selling,” the brokerage said.
Dalal Street witnessed a fair bit of buying during the week gone by, which lifted Nifty to 11,076 at September 13 close from 10,946 on September 6.
The strategy should be to add long positions in largecap and midcap segments, says Shrikant Chouhan, Senior Vice-President, Equity Technical Research, Kotak Securities. “Based on weekly and daily formation of Nifty, it is very clear that we will soon head higher to hit the level of 200-day SMA at 11,200,” he said.
Based on various brokerage recommendations, here are 12 stock strategies that can potentially deliver solid gains over the next 11-21 sessions.
Analyst: Rajesh Bhosle, Technical Analyst, Angel Broking
Bajaj Finance |Buy| Target price: Rs 3,620 | Stop loss: Rs 3,340
This stock is in a strong uptrend continuously moving in a ‘higher top-higher bottom’ formation on the weekly chart. On the daily chart, the stock has now confirmed a bullish ‘Descending Triangle’ breakout, which indicated the continuation of an uptrend. Prices are well above all the major moving averages, the including 20-day moving average (DMA), 50DMA and 200DMA, which indicate overall bullishness on the counter. In addition, momentum oscillator RSI is in the positive zone supporting the ‘buy’ call.
Federal Bank | Buy | Target price: Rs 96 | Stop loss: Rs 83
After forming a base around its previous swing low and around its 200WMA at Rs 80, this stock has confirmed the breakout of double bottom on the daily chart. Momentum oscillator RSI has entered the positive zone by crossing above the 50 mark. In addition, prices have closed above 20DMA, which previously acted as resistance and now suggests a change in polarity.
Vinay Rajani, Technical Analyst, HDFC securities
MahindraNSE 5.94 % & Mahindra | Buy | Target price: Rs 590 | Stop loss: Rs 525
This stock formed a bullish hammer candlestick pattern during the month ended August, 2018. A Hammer candle on the monthly charts indicates a bullish reversal in the medium term. The recent bottom of Rs 502 also coincided with a historical bottom formation in 2015 and 2016. The stock has witnessed a healthy correction from its all-time high and now exited the oversold zone. The indicators and oscillators have turned bullish on the daily chart.
Finolex Industries | Buy | Target price: Rs 570 | Stop loss: Rs 500
The stock has broken out of last 10 weeks’ price consolidation. It has also broken out of the downward sloping trend line adjoining weekly bottoms. Volumes have been going up for last three sessions. The moving average and oscillator setup is bullish on the daily and weekly charts.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartview India
Godrej Properties | Buy | Target price: Rs 1,069 | Stop loss: Rs 900
This counter appears to have registered a fresh breakout after moving in a narrow range for the past couple of weeks in the Rs 870-925 zone. Hence, a fresh leg of upswing appears to be unfolding from the recent low of Rs 875, which if materialises successfully, can take this stock towards Rs 1,069 level. Positional traders are advised to adopt a two pronged strategy of buying now and adding further on dips around Rs 925 and look for a target of Rs 1,069.
HCL Technologies | Buy | Target price: Rs 1,113 | Stop loss: Rs 1,047
This counter not only tested its 200-day exponential moving averages and the recent low of Rs 1,048 but also retraced 62 per cent of its last leg of upmove from the lows at Rs 993-1130 levels. With Friday’s bullish candle, a trend reversal for the near term appears to be in progress.
Jay Anand Thakkar, CMT Assistant Vice President-Equity Research, Anand Rathi Shares and Stock Brokers
TVS Motor | Buy | Target price: Rs 410 | Stop loss: Rs 380
This stock has started forming higher tops and bottoms on the daily charts with a clear reversal in the short-term momentum indicators from an oversold territory. The stock is also likely to retrace 38.20 per cent of its previous leg down. Hence, one can buy it for a target of Rs 410-430 with a stop loss of Rs 380
Aurobindo Pharma | Buy | Target price: Rs 660-675 | Stop loss: Rs 610
This stock has seen a clear breakout from an inverse head and shoulders pattern, which is a bullish reversal pattern. The daily, as well as weekly momentum indicator MACD, has provided a buy crossover, hence the stock is likely to achieve its pattern breakout.
Vikas Jain, Senior Research Analyst, Reliance Securities
Balkrishna Industries | Buy | Target price: Rs 840| Stop loss: Rs 710
This stock has made a double bottom at sub-Rs 700 levels with positive momentum in the stock and overall sector. A bullish crossover in RSI and Stochastic are signalling turnaround and resume its northward journey to test the 200-day average. Long position can be initiated for a target of Rs 840 with a stop loss of Rs 710
State Bank of India | Buy | Target price: Rs 320 | Stop loss: Rs 261
This stock has witnessed a sharp selloff from a high of Rs 373 level and seen an upward move over the past few weeks after forming a bottom near sub-Rs 265 level. Higher bottoms on weekly charts and strong support near to its 200-week average will hold the stock and crossover of its 20-day average confirms an uptrend.
Gaurav Bissa, AVP Derivatives and Technicals, LKP Securities
CESC | Target: Rs 900-925 | Stop loss: Rs 775
This stock has formed a double bottom as well as range breakout on the weekly chart with incremental volumes. On Japanese candlestick chart Ichimoku setup, the Chikou span is out of obstruction and Tenkan and Kijun are slanting higher, which implies the stock may soon pick up pace. Ichimoku is a technical analysis method that builds on candlestick charting to improve the accuracy of forecast price moves.
The stock is also trading above the cloud, which implies any dip can be utilised for buying.
TCSNSE -1.74 % | Target: Rs 2,250 | Stop loss: Rs 2,075
This stock has seen a good correction after witnessing a strong move. TCS has taken support from falling trendline support and bounced. The stock has formed bullish Harmonic Altshark pattern, which is a reversal pattern in nature. The stock is expected to pick up momentum in a couple of sessions