NEW DELHI: Extending their winning streak to the sixth consecutive session, Indian equity benchmarks opened with solid gains on Monday, as investors bought shares across sectors.
Investors’ risk appetite increased after government data showed a drop in India’s trade deficit to hit a 17-month low in February on a sharp fall in import of oil, gold and electronic goods.
Sustained FPI flows, rupee’s continuous rise against the US dollar, easing crude oil prices and hopes that the US Fed will stay dovish in its policy review later this week boosted sentiment.
While the market was brimming with positivity, analysts cautioned against getting carried away and advised a stock-specific approach. Based on various brokerage recommendations, here is a list of 12 stocks that can potentially deliver solid gains over the next 2-3 weeks.
Vaishali Parekh, Senior Technical Analyst, Prabhudas Lilladher
BHEL | Buy | Target price: Rs 75 | Stop loss: Rs 63
The stock has seen a decent correction from Rs 71.35 to Rs 66 level, and has seen a trend reversal with a healthy green candle pattern. It has seen a close above the 34 WMA, which is significant. The RSI indicator has also confirmed a buy signal with a trend reversal. “We expect this stock to rally up to Rs 75 level and recommend a buy, keeping a stop loss of Rs 63,” Parekh said.
HDFC Life Insurance | Buy | Target price: Rs 400 | Stop loss: Rs 340
The stock has made a good correction from Rs 393 to consolidate near Rs 365, which is forming a good support level. The stock has rallied with good volume participation and with the positive indicator like RSI, it may move further upwards to around Rs 400.
Aditya Agarwala, Senior Manager, Technical Analysis, YES Securities
Shriram City Union FinanceNSE -0.62 % | Buy | Target price: Rs 1,950-2,060 | Stop loss: Rs 1,700
On the weekly chart, Shriram City Union Finance has resumed its upward journey after completing a Five Wave correction. Further, it has also completed a bearish AB=CD pattern, indicating bullishness building up in the stock. On the daily chart, it is on the verge of a breakout from a “W” pattern neckline placed at Rs 1,800. Sustained trade above this neckline can extend the upward movement to the levels of Rs 1,950-2,060. RSI has also turned upwards 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 stock.
Power Grid Corporation | Buy | Target price: Rs 202-210 | Stop loss: Rs 187
On the weekly chart, Power Grid has broken out from a triangle pattern, triggering the resumption of the uptrend in the stock. Sustained trade above Rs 195 with healthy volumes would take the stock higher to the levels of Rs 202-210. Further, on the daily chart, it has broken out from a bullish flag pattern, affirming the bullishness. Moreover, the RSI has turned higher from the 40-level, indicating that bulls are in control of the stock.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Federal Bank | Buy | Target price: Rs 97 | Stop loss: Rs 87
With Bank Nifty making new lifetime highs, this counter is well placed to be a catch-up play with the larger trends. After almost a vertical move from the lows of Rs 78, this counter appears to be on the pause mode for the last four sessions and sooner rather than later it should resume its upmove with an initial target placed at Rs 97.
Raymonds | Buy | Target price: Rs 885 | Stop loss: Rs 799
This counter has been consolidating for the last couple of sessions after the steep upmove witnessed by it from the lows of Rs 674–835 levels. Momentum shall pick up once again on a close above Rs 835. In such a scenario, it can test its interim top placed around Rs 885 level.
Mustafa Nadeem, CEO, Epic Research
ONGC | Buy | Target price: Rs 165 | Stop loss: Rs 150
The stock has broken bullish continuation pattern along with higher volumes on the daily chart. The sharp pullback from lower levels of Rs 150 has formed a hammer pattern which indicates a trend reversal.
Torrent Power | Buy | Target price: Rs 270 | Stop loss: Rs 248
On the daily chart, a flag pattern is seen after a recent run-up from lower levels of Rs 230. This consolidation makes the trend healthier for the next leg of upmove. The volume, which has been dry, seems to be rising now while RSI shows momentum to remain strong and up with a reading of 63.
Kkunal Parar, Senior Technical Research Analyst, Choice Broking
IDFC First Bank | Buy | Target price: Rs 62.15 | Stop loss: Rs 47
On the weekly chart, the stock has given a breakout from the neckline of its cup & handle pattern formation with an increase in volume, which suggests a bull run. The stock may surge from its current level. On the daily chart, the stock has a given breakout of its flag pattern formation which is a continuation pattern and indicates an upside move in the counter.
M&M | Buy | Target price: Rs 733 | Stop loss: Rs 675
On the weekly chart, this stock has formed a bullish Harami pattern, which is a reversal formation and suggests that the trend may reverse in the counter. On the daily scale, the stock has given a breakout of its falling trend line which suggests a robust upside movement in the counter. Furthermore, the stock has closed above its 200-day exponential moving average which shows northward movement in the counter.
Subash Gangadharan, Senior Technical & Derivative Analyst, HDFC Securities
Kotak Mahindra BankNSE 1.40 % | Buy | Target price: Rs 1,440 | Stop loss: Rs 1,270
Kotak Mahindra Bank is one of the strongest stocks in the market currently. Last week, the stock broke out of the Rs 1,198-1,315 trading range on the back of above average volumes. This augurs well for the uptrend to continue. Technical indicators are giving positive signals as the stock trades above the 13-day and 50-day SMA. Daily momentum readings too are in rising mode and not overbought.
Sundram Fasteners | Buy | Target price: Rs 610 | Stop loss: Rs 520
Sundram Fasteners had rallied smartly last week on the back of healthy volumes, from the lows of Rs 516. In the process, the stock has broken above the Rs 495-549 trading range, that the stock was trading within since early January 2019. Technical indicators are giving positive signals as the stock trades above the short-term (13-day SMA) and medium term (50-day SMA) moving averages. Momentum indicator 14-day RSI is in the rising mode and not overbought.
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial advisor before taking any position in the stock/s mentioned.)