M&M, Maruti & ICICI Pru among 10 stocks that brokerages say can give solid returns in 2-3 weeks
Investors are treading cautiously ahead of the release of key macro data prints, including GDP.
Upbeat global sentiment on the back of positive signals from US-China trade negotiations lifted domestic equity benchmarks Nifty and Sensex in opening deals on Monday.
The rupee, too, saw a bounce, opening 11 paise higher at 71.03 against the US dollar amid some selling of the US dollar by banks and exporters.
However, a rise in crude oil prices, which jumped near their highest since mid-November, restricted the gains in domestic stocks.
Investors are also treading cautiously ahead of the release of key macro data prints, including GDP and infrastructure output numbers.
Around 10 am, BSE Sensex was up 74 points at 35,945, while Nifty rose 12 points to 10,804.
Technical analysts see stock-specific opportunities in the market. Based on various brokerage recommendations, here is a list of 10 stocks that can potentially deliver solid gains over the next 2-3 weeks.
Gajendra Prabu, technical analyst, HDFC Securities
M&M | Buy | Target price: Rs 690 | Stop loss: Rs 624
The stock has validated the Doji candle pattern formed on the daily charts (moved above the candle’s high), confirming the bullish reversal. The stock has been forming higher tops and bottoms in a smaller degree, which is a bullish continuation structure. Apart from this, the stock is attempting to cover the gap witnessed on February 11, 2019, between Rs 673 to Rs 678. In addition, a positive divergence has emerged on the RSI oscillator, which could give strength to the bulls. “Traders may look to buy the stock at current market price and add on dips up to Rs 630 level for an upside target of Rs 690. Place a stop loss at Rs 624 on a closing basis,” Prabu said.
Reliance Industries | Buy | Target price: Rs 1,322 | Stop loss: Rs 1,190
This stock has completed a Three Wave decline from Rs 1,264 to Rs 1,211, which is major Wave D with internal strong irregular Wave B. It is now in the process of forming a Wave E, which could ideally make a new lifetime high above Rs 1,321, which is slightly above the previous lifetime high. At the end of internal Wave C (Rs 1,211), a Morning Star candle pattern has emerged, which is a bullish reversal sign. The stock has been maintaining higher tops and bottoms. In addition, it is trading above all key moving averages, such as 21, 50 and 200-day EMAs. “Traders may look to buy the stock at the current market price and add on dips to Rs 1,215 for the upside target of Rs 1,322. Place a stop loss at Rs 1,190 on the closing basis,” Prabu said.
Vaishali Parekh, Senior Technical Analyst, Prabhudas Lilladher
Hero MotoCorp | Buy | Target price: Rs 2,950 | Stop loss: Rs 2,560
The stock has witnessed a decent erosion recently from the peak of Rs 2,960 and bottomed out at around Rs 2,580 level to make a double bottom formation pattern on the daily chart. The formation of a positive bullish candle has made the chart look very attractive and has improved the bias. “With the RSI showing a trend reversal from the oversold zone, the stock has given a buy signal and with good volume participation, we recommend a buy rating on this stock for an upside target of Rs 2,950, keeping a stop loss of 2,560,” said Parekh.
JSW Steel | Buy | Target price: Rs 330 | Stop loss: Rs 260
This stock has eroded much of its gain in the past four to five months from the peak of Rs 427 and recently showed signs of bottoming out around Rs 255 level. A bounceback has made the chart look promising for further upward movement. The RSI has slowly started rising to maintain a positive bias. “With consistent volume activity seen, we recommend a buy rating on the stock for an upside target of Rs 330, keeping a stop loss at Rs 260,” Parekh said.
Aditya Agarwala, Senior Manager, technical analysis, YES Securities
Maruti Suzuki India | Buy | Target price: Rs 7,215-7,350 | Stop loss: Rs 6,700
On the daily chart, Maruti Suzuki India has turned north after taking support at the 61.8 per cent Fibonacci retracement level, which is placed at Rs 6,700. Further, a sustained trade above Rs 6,950 will extend the rise to Rs 7,215-7,350 levels. The RSI has turned upward after taking support at the lower end of the bull zone i.e. 48- level, and has formed a positive reversal on the daily chart, suggesting bullishness on the counter.
Dabur India | Buy | Target price: Rs 460- 477 | Stop loss: Rs 418
On the daily chart, Dabur India has turned upward after taking support at the lower end of the channel pattern, indicating higher levels in the coming sessions. It has turned upward above its previous support low of Rs 417, affirming strength in the stock. Moreover, the RSI has turned upward from the 40-level after forming a positive reversal, indicating bullishness.
Pfizer | Buy | Target price: Rs 3,150-3,250 | Stop loss: Rs 2,900
On the daily chart, Pfizer is on the verge of a breakout from a bullish flag pattern neckline placed at Rs 3,030. A sustained trade above Rs 3,030 with healthy volumes would trigger a bullish breakout, taking the stock higher to the levels of Rs 3,150-3,250. On the weekly chart, it has broken out from a sideways consolidation phase, confirming the bullishness. Moreover, RSI has turned higher from the 50-level indicating that bulls are in control of the stock.
Mazhar Mohammad, Chief Strategist – technical research & trading advisory, Chartviewindia.in
Ashok Leyland | Buy | Target price: Rs 89 | Stop loss: Rs 77
The stock registered a reversal formation a couple of days back on relatively much higher volumes. After a big single-day upward move, the stock has undergone correction and consolidation and formed a decent base around Rs 80 from where a pullback rally can be expected.
Exide Industries | Buy | Target price: Rs 227 | Stop loss: Rs 202
After a decent correction from the highs of Rs 273, this counter has found buying interest around Rs 203, as for the last couple of sessions, it was stable around this level and looks on the verge of a pullback rally.
Jay Thakkar, CMT – Head Technical and Derivatives Research, Anand Rathi Shares and Stock Brokers
JSW Steel | Buy | Target price: Rs 308 | Stop loss: Rs 272
This stock has seen a breakout from the downtrend line as well as from an inverse head and shoulders pattern. The momentum indicator has also provided a buy crossover with a positive divergence. “From a short-term perspective, the stock can be bought for the target of Rs 308 with a stop loss of Rs 272,” said Thakkar.
ICICI Prudential Life Insurance | Buy | Target price: Rs 334 | Stop loss: Rs 308
This stock has seen a breakout from the symmetrical triangular pattern with a buy crossover on its momentum indicator MACD. It has also seen a breakout from the short-term moving average, and thus showing the probability that the upside is high.
(Views and recommendations given in this section are the analysts’ own and do not represent those of TheFututeMarkets.com. Please consult your financial advisor before taking any position in the stock/s mention.)
Source: ET Markets
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