10 stock ideas that brokers say can deliver gains in three weeks

NEW DELHI: Benchmark equity indices Sensex and Nifty scaled record highs during the week gone by, but lost some momentum towards the end of the week.

The S&P BSE Sensex slipped 155 points, or 0.41 per cent, to settle at 37,869 on Friday, while NSE’s Nifty50 fell 41.20 points, or 0.36 per cent, to end at 11,429. On a weekly basis, the 30-share pack gained 0.83 per cent while the Nifty50 pack rose 0.60 per cent.

“The Nifty50 is falling towards the junction of 40-hour exponential moving average and hourly lower Bollinger Band, where a rising trendline stands close by. Thus, the 11,410-11,400 range shall be the immediate support zone to watch out for. Though the overall trend continues to be positive, the index can get into consolidation mode before stretching higher,” said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.


The coming week will be a truncated one, with August 15 being a holiday on account of Independence Day. “We expect a tepid start to the week and do not expect the market to make any meaningful headway on the upside,” said Milan Vaishnav, CMT MSTA.

Based on various brokerage recommendations, here are 10 stock strategies that can potentially deliver solid gains over the next 14-21 sessions.
Gajendra Prabhu, Technical Analyst at HDFC Securities

DLF | BUY | Target Price: Rs 218 | Stop loss: Rs 184

This stock has provided a key trendline breakout, which is a bullish development and validates the hammer candle pattern on the monthly chart (moved above the candle’s high), which is the confirmation of the bullish reversal. The price has started a new rising leg or a larger upward retracement leg from the low of Rs 168 while higher top and bottom formation has been observed in the smaller degrees, which is a bullish structure. This means more upside move is expected on the counter in the coming days. In addition, the price is placed well above the key moving averages of 21-day and 50-day EMAs; this could add strength to the bulls. Traders may look to buy the stock at CMP and add in dips to Rs 190 for an upside target of Rs 218 over the next 2-3 weeks. Place a stop loss at Rs 184, he said.
Milan Vaishnav, CMT, MSTA

TV Today Network | BUY | Target Price: Rs 535 | Stop loss: Rs 398

After marking its peak near Rs 534, this stock remained in a falling trajectory under a corrective decline. Over the past couple of weeks, it has attempted to form a base in the Rs 410-440 range. The RSI has marked a fresh 14-period high and this is a bullish indication. The RSI is also seen breaking out of a pattern formation. Being a lead indicator, the price is expected to follow. The daily MACD stays positive trading above the signal line. A big white candle appeared on the weekly chart and it is significant as it appeared near the strong support area of 50 WMA. A buy signal has emerged over Stochastic over the weekly chart with a bullish divergence against the price. Trend reversal is expected. Any move below Rs 398 will be negative for the stock.

Piramal Enterprises | BUY | Target Price: Rs 3,010 | Stop loss: Rs 2,650

After remaining in a broad trading range for many months, this stock is looking for a breakout and the stock is likely to test its previous highs. The prices have broken out from a falling trend line resistance. Currently, it is seeing a throwback. The On-Balance Volume or OBV has already marked a fresh high, which is a bullish signal. It gives confirmation on the volume front and lends credibility to the breakout. While the weekly MACD remains positive as it trades above its signal line, the weekly RSI has marked a fresh 14-period high, which is a bullish indication. It is also seen breaking out of a formation. Though some minor consolidation cannot be ruled out, the stock is set to see its previous highs. Any move below Rs 2,625 will be negative for the stock.

Kapil Shah, Technical Analyst, Emkay Global Financial Services

NTPC | BUY | Target Price: Rs 168 | Stop loss: Rs 155
From the past few weeks, this stock has formed a strong base at lower levels in signs of accumulation. Sustainability above this range can lead to further upside.

Amara Raja Batteries | BUY | Target Price: Rs 865 | Stop loss: Rs 805

The stock has started to react positively from Demand Zone and is showing sign of continuation on the higher side. On the daily chart, it has formed a Twizzer Bottom, which indicates presence of buyers at lower levels.

Mazhar Mohammad, Chief Strategist for Technical Research & Trading Advisory, Chartviewindia.in

Exide Industries | BUY | Target Price: Rs 319 | Stop loss: Rs 279

New lifetime highs on this counter on relatively higher volumes in Friday’s session suggested that it can be heading towards much higher levels. On the way up, it can face some minor hiccups in the Rs 297–300 zone, which is the upper boundary of a 45-day-old ascending channel, which is in progress from the low of Rs 245. Once that level is crossed, based on said channel breakout, we can project a new target at Rs 320. Positional traders shall buy into this counter for a target Rs 319 with a stop loss below Rs 279 on a closing basis.

ICICI Pru Life | BUY | Target Price: Rs 439 | Stop loss: Rs 397

For the past few sessions, this counter appears to be consolidating in the Rs 400–420 range and even in Friday’s session, it made a dramatic recovery after hitting an intraday low of Rs 404. This kind of behaviour clearly points towards some sort of accumulation at lower end of this trading range which should eventually pave the way for an upside breakout. Hence, positional traders are advised to buy at current levels and further add on dips around Rs 405 for a logical target of Rs 439 in anticipation of a range breakout above Rs 420 level. Stop loss is suggested below Rs 397 on a closing basis.

Voltas | BUY | Target Price: Rs 675 | Stop loss: Rs 590
This counter appears to have registered a price and volume breakout after a brief struggle for the last couple of days in the Rs 590–560 zone. The current strong breakout aided by a multi-week base building process at lower levels shall initially take it towards its lifetime high of Rs 675 registered in January 2018. Hence, positional traders shall buy into this counter at current prices and on declines if any around Rs 610 for a target of Rs 675. Stop loss should be below Rs 590 on a closing basis.

Vaishali Parekh, Assistant Vice President - Technical Research, Prabhudas Lilladher

Aurobindo Pharma | BUY | Target Price: Rs 655 | Stop loss: Rs 580

The stock has made a series of higher bottom formation pattern in the daily chart taking support at the significant 50-DMA, which lies near Rs 598. The chart looks attractive for further rise in the coming days and with increasing volume participation witnessed, a positive bias has been maintained. "We recommend a buy in this stock for an upside target of Rs 655, keeping a stop loss at Rs 580," said Parekh.

Mahindra & Mahindra | BUY | Target Price: Rs 1,030 | Stop loss: Rs 910

The stock has been consolidating for quite some time at Rs 910–925 levels gaining strength and currently has produced a positive candle pattern in the daily chart to signify a positive bias and has potential to rise further in the coming days. "The RSI also has indicated a trend reversal to signal a buy and with decent consistent volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 1,030 keeping a stop loss of Rs 910,” the analyst said.


(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.)