NEW DELHI: Last week turned marked the third straight weekly loss for the benchmark Nifty. Investors are moving with care, given sluggish domestic and global cues, ahead of the Fed policy meet.
The index fell 0.31 per cent, or 31.70 points, to 10,195.15 for the week ended March 16. The index was at 10,226.85 on March 9.
Analysts are cautious about any further upmove in the benchmark equity index.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan, said, “Upside looks capped at the zone of 10,400-10,500 with a crucial hurdle at 10,631. In terms of Elliott Wave Theory, the index is forming wave extension on the downside for which 10,000 and 9800 will be the targets to watch out for.”
According to Prateek Jain, Director, Hem Securities, Nifty is "precariously" poised above the 200-DMA of 10,100. Bank Nifty has managed to currently hold above its yearly mean of 24,500. "The weak structure will be negated only if the Nifty manages to break above the 10,480 mark, till then it is advisable to remain cautious with long positions,” he added.
Based on various brokerage recommendations, here are 10 stock strategies that can lead to handsome gains over the next 11-21 sessions.
Aditya Agarwala, Technical Research Analyst, YES Securities
Ahluwalia Contracts (India) | Buy | Target price: Rs 431-463 | Stop loss: Rs 365
On the weekly chart, Ahluwalia Contracts (India) is on the verge of a breakout from an Ascending Triangle pattern suggesting bullishness building up in the stock. Neckline of the pattern is placed at Rs 405; a sustained trade beyond the neckline on higher volumes will trigger bull trend reversal. On the daily chart, stock is forming higher highs and higher lows affirming bullishness. Relative Strength Index (RSI) has also broken out of the upper end of the Bollinger Bands after taking support at the 50 level suggesting higher levels. The stock can be bought in the range of Rs 393-397 for targets of Rs 431-463, keeping a stop loss below 365.
Shriram City Union Finance | Buy | Target price: Rs 2,375-2,500 | Stop loss: Rs 2,000
On the weekly chart, Shriram City Union Finance has broken out from a wedge pattern, triggering a bull trend reversal. Further, a sustained trade above Rs 2,175 can extend the uptrend. RSI on the weekly chart has turned upwards after forming a positive divergence indicating strength. On the daily chart, it has broken out from a consolidation zone with healthy volumes affirming bullishness. The counter can be bought in the range of Rs 2,145-2,155 for targets of Rs 2,375-2,500, keeping a stop loss below Rs 2,000.
Yogisha Motla, Senior Technical Analyst, The Omniscient Securities
JK Lakshmi Cement | Buy | Target price: Rs 460 | Stop loss: Rs 405
After two months of consolidation in symmetrical triangle pattern on the daily chart, this counter appears to have kicked in a fresh leg of an upswing and is ready for a breakout. Recently, it saw an upward momentum with open interest addition. The daily MACD remains in continuing buy mode. A fresh buy signal has emerged over the weekly MACD.
SAIL | Buy | Target price: Rs 77.50 | Stop loss: Rs 68.30
After witnessing a downmove in the calender year 2018 from the high of Rs 100, this counter has bottomed out and has been making higher bottoms on weekly and daily charts with support at 200 SMA. “We expect the stock to surpass its gap resistance of Rs 75.20 and then rise towards 77.50. Stock is sustaining above its 20, 50 and 100 EMA, which indicates bullish sentiment. Both weekly and monthly strength indicator along with momentum indicator are in bullish territory,” said Motla.
Sameet Chavan, Chief Analyst-Technical & Derivatives, Angel Broking
MCX | Buy | Target price: Rs 855| Stop loss: Rs 782
Since the early part of February, Angel Broking has been quite vocal on the possible bottoming out formation around the Rs 700 mark. “We remained contradictory buyers from the level of Rs 730 and this strategy eventually turned out to be quite fruitful for us. Recently, we witnessed a confirmation of the ‘Bullish Hammer’ pattern on weekly chart and now, due to Thursday’s gigantic rally, the price structure confirmed its ‘Higher Top Higher Bottom’ formation on the daily chart. Considering the volume activity in this price action, the stock is still not done with its upward move. Hence, we recommend buying for a target of Rs 855. Traders are advised to follow strict stop loss at Rs 782,” said Chavan.
Milan Vaishnav | Technical Analyst | Gemtone Equity Research and Advisory
GE Power | Buy | Target price: Rs 870 | Stop loss: Rs 810
After breaking out from a long rectangle trading range, the stock tested highs of Rs 1,044.70 and since then has witnessed a corrective retracement. The stock is attempting to find a bottom in the Rs 790-825 zone and might resume its upmove. The Daily MACD stays in continuing buy mode. RSI is neutral, but is seen marking higher highs. On weekly charts, Stochastic is seen in continuing buy mode after formation of a bullish hammer in the preceding week. Bollinger Bands, which are 47.44% narrower than normal, further increase the chances of a sharp move in prices.
LA Opala | Buy | Target price: Rs 695| Stop loss: Rs 625
The stock is seen breaking out of a prolonged consolidation after resisting a double top formation in 718-730 zones. The stock since has been moving sideways in a narrow range. A couple of signals have emerged that point to likely upward revision in prices. Daily MACD is in continuing buy mode. RSI is seen taking a pattern support and also marking higher highs while breaking out of a formation. With Bollinger bands 60.93 per cent narrower than normal, volatility is likely to increase in coming days with an upward bias. Resumption of momentum and upmove cannot be ruled out in coming days.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Muthoot Finance | Buy | Target price: Rs 438 | Stop loss: Rs 360
Last three sessions of price action with a bullish engulfing pattern on weekly charts is suggesting that this counter has bottomed out at recent lows of Rs 363 levels after 5 months of correction from the highs of Rs 525 registered in September last. However, considering volatility in the market, traders should adopt a two-pronged strategy of buying now and on declines around Rs 380 levels for an initial target of Rs 438 levels. Stop suggested for the trade is Rs 360, which appears to be far away, but is worthy of taking such a wide risk in this counter.
Dish TV | Buy | Target price: Rs 78 | Stop loss: Rs 63
This counter appears to have bottomed out at recent lows placed around Rs 65 as it made a massive upmove on high volumes in single trading session, suggesting that it has embarked on a fresh leg of upswing from the said lows. Hence, initially, it can test its 200-Day Moving Average whose value is placed around Rs 78. Positional traders can go long for a initial target of Rs 78 with a stop loss of Rs 63.
Gajendra Prabu, Technical Research Analyst, HDFC Securities
Bajaj Finance | Buy | Target price: Rs 1,885 | Stop loss: Rs 1,590
The stock has started a fresh rising leg from the low of Rs 1,511 which is the end of major “Wave VI”. Recently, the price has provided a breakout of ‘Head & Shoulder’ pattern on hourly charts and now, price is in a throwback fall. The 200-day EMA could provide support to the stock, which is placed at Rs 1,620. Price is in internals of major “Wave V” and has good upside potential towards a new life high. So, traders may look to buy the stock at the current market price and add in dips to Rs 1,650 for the upside target of Rs 1,885 over the next 2-3 weeks. Place a stop loss at Rs Rs 1,590 on a closing basis.
(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.)