NEW DELHI: Snapping a losing streak of two consecutive sessions, equity benchmarks Sensex and Nifty saw a positive opening on Monday after its Asian peers rebounded amid geopolitical concerns around Saudi Arabia, Italy and Brexit.
A fresh spell of buying in select bank and financial stocks lifted the market. But IT, auto, metal and telecom heavyweights remained subdued.
The outlook for the broader market remains uncertain, but analysts see stock-specific opportunities across sectors. Based on various brokerage recommendations, here are top 12 stocks that are expected to log gains over the next three weeks.
Aditya Agarwala, Technical Research Analyst, YES Securities (India)
Gujarat Fluorochemicals| Buy| Target price: Rs 935-980| Stop loss: Rs 860
On the weekly chart, Gujarat Fluorochemicals has broken out of a triangle pattern neckline placed at Rs 886, triggering resumption of a bullish trend. Moreover, a sustained trade above Rs 892 with healthy volumes can take the stock higher to Rs 935-980 levels. The RSI has turned upwards after taking support at the lower end of the bullish zone i.e. 47 level and has formed a positive reversal, suggesting bullishness on the counter. “The stock can be bought in the Rs 892-896 range for targets of Rs 935-980, keeping a stop loss below Rs 860,” Agarwala said.
NIIT Technologies| Buy| Target price: Rs 1,300-1,360| Stop loss: Rs 1,200
On the weekly chart, NIIT Technologies has taken support at the 38.2 per cent Fibonacci retracement level and turned upwards suggesting bullishness. On the daily chart, it has broken out of a channel pattern indicating higher levels in the coming trading sessions. The RSI has turned upwards after forming a positive divergence suggesting higher levels in the coming trading sessions. “The stock can be sold in the Rs 1,235-1,240 range for targets of Rs 1,300-1,360, keeping a stop loss below Rs 1,200,” Agarwala said.
Anand James, chief investment strategist, Geojit Financial Services
Federal Bank | Buy| Target price: Rs 89-93 | Stop loss: Rs 75
Having fallen over 47 per cent from record peak seen 12 months back, this stock is back into the primary uptrend after having turned from the 50 per cent Fibonacci retracement. Ideally Rs 89, the 200 DMA, level can be set as the target with a stop loss placed below Rs 75.
Bank of Baroda| Buy | Target price: Rs 107| Stop loss: Rs 97
The selling spree is showing several signs of losing steam, and a reversal attempt is in play supported by positive oscillators. “Ideally, this should stretch beyond Rs 115, but a limited upside view with Rs 107 as an objective looks better with a stop loss placed below Rs 97,” James said.
Vaishali Parekh, senior technical analyst, Prabhudas Lilladher
Jubilant Foodworks| Buy| Target price: Rs 1,430| Stop loss: Rs 1,150
The stock has bottomed out at around Rs 1,080 level after the decent correction and has bounced back currently to just move past the significant 200-DMA, indicating a positive bias and has strength and potential to carry on the momentum still further upside. "The RSI has recently indicated a trend reversal and has signalled a buy and with good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 1,430, keeping a stop loss at Rs 1,150,” Parekh said.
Hindustan Unilever| Buy| Target price: Rs 1,720| Stop loss: Rs 1,480
This stock has taken support near the significant 200DMA moving average which lies near Rs 1,515 level and has witnessed a bounce back to indicate strength and the revival is anticipated to continue still further upside. “The chart looks attractive and with the indicators looking favourable and with good consistent volume activity witnessed, we recommend a buy in this stock for an upside target of Rs 1,720, keeping a stop loss at Rs 1,480,” Parekh said.
Mazhar Mohammad, chief strategist for technical research & trading advisory, Chartviewindia.in
Power Grid Corporation of India| Buy| Target price: Rs 203 | Stop loss: Rs 185
This counter is displaying a lot of strength as it registered two positive closes when the entire market was under fire in last two sessions. Besides, its closing price is almost flat around Rs 188 in last three weeks on the weekly chart. This is clearly pointing out that bulls are reluctant to give up their bets on this counter for reasons best known to them. Hence, on a pull back its initial targets can be Rs 203. “Positional traders should buy into this counter with a stop below Rs 185 on closing basis,” Mohammad said.
Bharti Airtel | Buy| Target price: Rs 325 | Stop loss: Rs 279
Bhartis chart is looking quite interesting as it is moving almost flat in a narrow range of 295 – 282 levels for last seven sessions, that too, after a vertical fall from the highs of Rs 397 for last five weeks. This kind of price behaviour may be suggesting that selling might have dried up and hence a relief can be expected as long as this counter sustains above Rs 282. “Positional traders should buy into this counter for a target of Rs 325 with a stop below Rs 279 on closing basis,” Mohammad said.
Nagaraj Shetti, technical research analyst, HDFC Securities
Adani Enterprises | Buy | Target price: Rs 188 | Stop loss: Rs 154
After witnessing a sharp weakness in the month of September 2018, the stock price has shifted into a smart upside bounce in the last couple of weeks. A decent bounce in last few sessions is indicating a near-term bottom reversal for the stock price. The weekly 14-period RSI is showing a positive indication, which is suggesting a continuation of upside momentum for near term. Volume rose in the last two weeks, in line with the upmove in the stock price. “One may look to buy Adani Enterprises at current market price (Rs 168.55), look to add more on dips down to Rs 159, hold for the upside target of Rs 188 over the next 2-3 weeks, with a stop loss at Rs 154,” Shetti said.
Hindustan Zinc| Buy| Target price: Rs 315| Stop loss: Rs 265
The downtrend in this metal stock seems to have completed. After showing a bullish hammer type candlestick pattern in the previous week, the stock price has witnessed a sharp upside bounce in last week. This pattern is signalling an upside reversal in the stock price. We also observe a formation of higher bottom formation at Rs 265, compared with the last bottom of July 2018. Volume and momentum oscillators are showing positive indications for the stock price ahead. “Buying can be initiated at current market price (Rs 285), add more on dips down to Rs 272, for the upside target of Rs 315 for the next 2-3 weeks. Place a stop loss at Rs 265,” Shetti said.
Jay Thakkar, CMT – head technical and derivatives research: AVP equity research, Anand Rathi Shares and Stock Brokers
Sun Pharmaceutical Industries| Buy| Target price: Rs 640| Stop loss: Rs 590
This stock has closed in the positive territory in the last trading week and with that, a reversal from downside is quite likely. A minimum retracement level comes to Rs 640. The stock has also reversed well from the lower end of the falling channel. "We recommend buying this stock with a target price of Rs 640 and a stop loss of Rs 590,” Thakkar said.
Wipro| Buy| Target price: Rs 340| Stop loss: Rs 313
The stock seems to have formed a Wave 4 on the daily charts and Wave 5 up seems to have started. The stock has also provided a breakout from the falling channel and it has managed to close above it which is also a positive sign. The hourly momentum indicator has come into buy mode with a positive divergence.