HUL, HPCL, GAIL among 12 stocks that analysts are betting on for solid gains

Mumbai: Lead by strong cues from Asian peers and positive macro data, domestic benchmark indices Sensex and Nifty scaled fresh record highs in Monday's opening session.

Experts on Dalal Street see ample opportunities in the midcap and smallcap space apart from heavyweights.

"Recent volatility and market buoyancy have shown that bulls are intact and taking one step back for two steps forward. We believe any small dip could be a buying opportunity to be with the next leg of the rally," said Chandan Taparia, Vice President – Research, Motilal Oswal financial services.


Vaishali Parekh, head of technical research at brokerage firm Prabhudas Lilladher believes that while the bias has turned positive once again, with the onset of result season volatile movements are likely. According to Parekh, the support for the week is seen at 40,960 and 12,050 for Sensex and Nifty respectively, while resistance is seen at 42,200 and 12,450 for the respective indices.

In this backdrop, here are 12 money-making ideas that can deliver solid gains over the next few weeks.

Shrikant Chouhan, SVP Technical Research, Kotak Securities

Hindustan Unilever| Buy| Target price: Rs 2,060| Stop loss: Rs 1,900
The stock has completed its longer-term retracement of the strong move it gave from the levels of Rs 1,650 to Rs 2,190, and has since reversed sharply from key retracement zone which clearly hints that correction is over and the stock is ready for a fresh impulse move, the analyst said. On the weekly chart, the stock has formed Bullish engulfing candlestick formation which is bullish in nature. Looking at the overall pattern, the analyst has a buy call on the stock with a target price of Rs 2,060 and a stop loss of Rs 1,900.

BEML| Buy | Target price: Rs 1,040| Stop loss: Rs 945
The stock has reversed sharply from a strong support zone with a substantial increase in volumes, which indicates that it is in the buy zone. Looking at the overall pattern, it seems the stock is forming a descending triangle pattern with very high chances of breaking out, which is further supported by pickup in ADX (average directional index) on the daily chart, the analyst said. ADX is used to quantify trend strength, and its calculations are based on a moving average of price range expansion over a given period of time. The analyst recommends buying the stock at current levels and says one can add more stocks at Rs 960, with a target price of Rs 1,040 and a stop loss of Rs 945.

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

Vedanta| Buy| Target price: Rs 174 | Stop loss: Rs 150
This counter appears to be on the verge of a breakout as it closed above its critical moving average on long term charts which thwarted multiple pullback attempts in the past for almost a year, the analyst said. As the last four days of positive price action is on the back of relatively higher volumes, it can sooner than later initiate sustainable short term rally. In that scenario, the analyst recommends an initial target of Rs 174. The positional traders are advised to buy into this counter now and on dips around Rs 152 with a stop below Rs 150 on a closing basis.

GAIL| Buy| Target price: Rs 137| Stop loss: Rs 120
This counter appears to have embarked on a short-term uptrend for the last couple of weeks as it is making the sequence of higher tops and higher bottoms. As it is sustaining above its critical short-term moving averages, which prevented its pullback attempts in the past, the analyst recommends that one can initiate fresh long positions with a stop loss below Rs 120 on a closing basis. Once this counter manages a strong close above Rs 127 levels, brokerage believes the momentum shall pick up and it can easily head towards its logical targets of Rs 137.

Sobha | Buy| Target price: Rs 451 | Stop loss: Rs 399
This counter appears to be forming a large base around Rs 400 for the last couple of weeks, hinting at some sort of accumulation. Hence, once it manages a strong close above Rs 420, then the momentum will accelerate in this counter which can swiftly take it towards its logical target of Rs 451, the analyst says. Hence, positional traders, in anticipation of such a breakout, are advised to buy into this counter with a stop below Rs 399 on a closing basis, the analyst added.


Vikas Jain, Senior Research Analyst, Reliance Securities

HPCL | Buy | Target price: Rs 285 | Stop loss: Rs 238
The stock has completed its correction at sub-Rs 240 levels and bounced from the lower range over the past two quarters. According to the analyst, positive momentum over the last few days and strong volumes at lower levels confirm a strong bottom is in place from current levels. Thus, a long position can be initiated for the target of Rs 285 with a stop loss of Rs 238, the analyst said.

Marico| Buy | Target price: Rs 365 | Stop loss: Rs 322
The stock has made a double bottom near sub-Rs 330 levels and witnessed a strong pullback to close above the short-term averages. The brokerage believes that the reversal of RSI and crossover above the averages confirms for a higher up move from current levels. The analyst believes a long position can be initiated here and on dips for the target of Rs 365 with a stop loss of Rs 322.

Santosh Meena, Senior Analyst, TradingBells

Ultratech Cement | Buy | Target price: Rs 4,900 | Stop loss: Rs 4,270
Infrastructure sector is doing well ahead of the Budget and cement stocks are showing decent strength, the analyst said. Ultratech cement is brokerage's top pick in the cement space. Technically, there is a breakout of the classical symmetrical triangle pattern on the daily chart and it is trading above all its important moving averages. The analyst expects this counter to move towards Rs 4,900 level in the coming days as momentum indicators are also supporting the current bullish momentum. On the downside, 200-DMA of Rs 4,270 will act as strong support and that should be stop loss for long positions, he added.

Dabur| Buy | Target price: Rs 500 | Stop loss: Rs 457
Generally, rural theme-related stocks do well ahead of the Budget and the analyst believes Dabur is one of the quality counters to play this theme in upcoming days. Technically, it is in a strong uptrend where after a period of consolidation it is witnessing breakout of bullish pennant pattern on a weekly time frame. The stock took multiple support at Rs 445 level on the daily chart and created a strong base to move higher. Momentum indicator RSI has moved above 50-mark with a positive crossover on the daily time frame. The analyst believes Dabur's stock is likely to move towards Rs 500 level in the coming days while 50-DMA of Rs 462 will act as immediate support.

Subash Gangadharan, technical analyst, HDFC securities

IRB Infrastructure Developers | Buy | Target price: Rs 105 | Stop loss: Rs 72.50
After touching a major low of Rs 56 in October 2019, IRB has been steadily climbing and making higher bottoms and higher tops in the process. The stock has been consolidating in a tight range of Rs 72.5 and Rs 79.5 for the last two weeks. On Friday, the stock broke out of this trading range on the back of huge volumes. With the long term technical setup too looking attractive, this augurs well for the uptrend to continue, the analyst said. Technical indicators are giving positive signals as the stock trades above the 13-day and 50-day SMA. The 14-day RSI is in rising mode and not overbought. The MACD indicator too is in the buy mode. The analyst recommends buying this stock between Rs 79 and Rs 83 with a stop loss of Rs 72.5 and a target of Rs 105 for two-five weeks.

Rajesh Bhosale, Technical Analyst Angel Broking

Finolex Industries | Buy | Target price: Rs 640 | Stop loss: Rs 536
After trading in a broad range of Rs 530-Rs 560 for the last one month, the stock prices have broken above the higher range confirming a bullish range breakout. The last two sessions’ up move is supported with a bullish gap and with increasing volume. In addition, the lead indicator RSI has hastened into the positive zone from the oversold zone suggesting a strong positive momentum. In the last few weeks, the stock from the midcap segments has been outperforming and this stock too seems to be gearing up for a strong up move in the near term, the analyst said. Bhosale recommends buying this stock at current levels with a target of Rs 640 over the next 14 sessions, and stop-loss at Rs 536.

Jay Thakkar, Head of Technical and Derivatives Research, Anand Rathi Shares and Stock Brokers

Tata Power | Buy | Target Rs 63 | Stop loss Rs 56
The stock has provided a breakout from the inverse head and shoulders pattern which is a bullish reversal pattern. The stock's move prior to this breakout was an impulsive one i.e. a five-wave rising structure, hence with this breakout, another impulse on the way up seems to have started, the analyst said. The broker recommends buying the stock with a target price of Rs 63 and a stop loss of Rs 56.