NEW DELHI: The domestic equity market witnessed a turnaround and opened positive on Monday, with benchmark Sensex jumping 230 points and Nifty touching 10,083 mark in opening trade.
However, the headline indices failed to hold altitude and pared gains, taking cues from Asian peers as worries over corporate earnings and a slowdown in global economic growth weighed on.
Analysts said a stock-specific approach should work in such an unpredictable market. Based on the recommendations from various brokerages, here are 10 stocks that can give you decent gains over the next 2-3 weeks.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Coal India| Buy | Target price: Rs 299 | Stop loss: Rs 272
Recent price behaviour on this counter is pointing towards some sort of accumulation. The stock is holding on to its recent gains and has registered a bullish candle on the weekly chart, especially at a time when the broader market was witnessing a deep carnage. “Sustaining above Rs 273 level, this counter can be expected to initially target the Rs 299 level. Positional traders should buy into this counter for the said target with a stop loss below Rs 272,” Mohammad said.
Blue Star | Buy | Target price: Rs 576 | Stop loss: Rs 500
In last four sessions, this counter traded almost flat and appears to be moving in a horizontal fashion, pointing towards better relative strength compared with the broader market. “Sustaining above the current four-day-old base formation, this stock can initially target the Rs 576 mark. Traders should buy this stock for the said target with a stop loss below Rs 500 on a closing basis,” Mohammad said.
ICICI Pru | Buy | Target price: Rs 340 | Stop loss: Rs 307
This counter is clearly showing signs of an early bottom, as it tested the low of Rs 310 in last four weeks and then bounced back, suggesting a strong support around those levels. Positional traders should buy at the current price and add further around Rs 312 for an initial target of Rs 340. On a sustainable close above Rs 340, a higher target of Rs 370 cant be ruled out. Positional traders should buy the stock for an initial target of Rs 340 with a stop loss below Rs 307 on a closing basis.
Aditya Agarwala, technical research analyst, YES Securities (India)
Sterlite Technologies | Buy | Target price: Rs 375-400 | Stop loss: Rs 320
On the weekly chart, Sterlite Technologies is on the verge of a breakout from a triangle pattern neckline placed at Rs 363, indicating the resumption of bullish trend. A sustained trade above Rs 363 with healthy volumes can take the stock higher to Rs 375-400 levels. The RSI has turned upward after taking support at the lower end of the bull zone i.e. 40 level, and has formed a positive reversal on the daily chart, suggesting bullishness in the counter. “The stock can be bought in the Rs 344-347 range for targets of Rs 375-400, keeping a stop loss below Rs 320,” Agarwala said.
TTK Prestige | Buy | Target price: Rs 7,100-7,400 | Stop loss: Rs 6,000
On the weekly chart, TTK Prestige has taken support at the lower end of a channel and turned upwards suggesting the resumption of an uptrend on cards. On the daily chart, it has broken out from a channel pattern after forming a positive divergence with respect to the RSI, indicating higher levels in the coming sessions. Moreover, the RSI formed a positive reversal on the weekly chart, suggesting that the uptrend is still intact. “The stock can be bought in the range of Rs 6,435-6,445 for targets of Rs 7,100-7,400, keeping a stop loss below Rs 6,000,” Agarwala said.
Vaishali Parekh, senior technical analyst, Prabhudas Lilladher
Mahindra & Mahindra | Buy | Target price: Rs 825 | Stop loss: Rs 700
This stock has witnessed a decent correction from Rs 976 to bottom out around that level and there a consolidation phase going on to signify strength and potential in the stock. The chart looks attractive. With the RSI moving around in the oversold zone, the bias and risk-reward ratio has become attractive. “With good volume activity seen, we recommend buying this stock for an upside target of Rs 825, keeping a stop loss at Rs 700,” Parekh said.
Britannia Industries | Buy | Target price: Rs 5,900 | Stop loss: Rs 5,000
This stock has witnessed a good correction from the Rs 6,935 level. It is currently showing signs of bottoming out at around Rs 5,255 and the chart looks promising for an upside movement in the coming days. The RSI has indicated a trend reversal to signal a buy. “With good volume participation, we recommend buying the stock for an upside target of Rs 5,900, keeping a stop loss of Rs 5,000,” Parekh said.
Nagaraj Shetti, technical research analyst, HDFC Securities
InterGlobe Aviation (IndiGo)| Buy | Target price: Rs 960 | Stop Loss Rs 815
The declining trend of IndiGo seems to have completed as the stock has witnessed an excellent bounce in the past few weeks. After forming a consistent negative sequence of lower tops and bottoms on the daily charts, this stock has moved up swiftly, by forming higher highs and lows, which signals a positive bias. Volume and RSI are also supporting current upmove. “Buying can be initiated at the current market price (Rs 875) and add more on dips down to Rs 835. Hold for the upside target of Rs 960 for the next 3-4 weeks, with a stop loss at Rs 815,” Shetti said.
Jay Thakkar, CMT – head technical and derivatives research – AVP equity research, Anand Rathi Shares and Stock Brokers
Maruti Suzuki | Buy | Target price: Rs 7,300 | Stop loss: Rs 6,500
This stock seems to have completed a five-week declining structure. So, a bounceback or a retracement of the entire fall is expected. Momentum indicators are showing positive divergence which also a positive sign going forward for this stock.
Gaurav Ratnaparkhi, senior technical analyst, Sharekhan by BNP Paribas
Godrej Industries | Buy | Target price: Rs 520 | Stop loss: Rs 434
After a multi-week decline, Godrej Industries seems to be forming a base for itself. On the daily chart, it has formed a Doji pattern at the daily lower Bollinger Band, which shows that the momentum can shift in favour of the bulls. The stock is showing a positive divergence on the daily chart, which is a bullish sign. So, the stock seems to be gearing up for a short-term pullback.