Voltas, TechM, CESC, VIP among 10 stocks analysts say can deliver gains in 2-3 weeks
Analysts advise investors to follow a prudent, stock-specific approach in this market.
By Nishant Kumar, ETMarkets.com |
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NEW DELHI: Indian equities opened on a strong note on Monday on positive global sentiment after the US dropped its threat to impose tariffs on Mexico and weak US jobs data raised hopes of interest rate cuts by the US Fed.
Domestic barometer Sensex jumped over 360 points in early deals on gains led by IT, bank, metal and FMCG counters.
While it may look tempting to pick up cheaper stocks now, analysts advise investors not to get carried away and follow a prudent, stock-specific approach as the market appears vulnerable to profit taking at higher levels.
“The broader technical setup suggests no sustainable rally but only mild technical pullbacks. There are higher probabilities that in spite of the strong start, Nifty may lose strength going ahead,” said Milan Vaishnav, Consultant Technical Analyst at Gemstone Equity Research & Advisory Services.
Based on recommendations by various analysts and brokerages, here is a list of 10 stocks that look poised to deliver good returns over next 2-3 weeks.
Vikas Jain, Senior Research Analyst, Reliance Securities
This stock has made a double bottom near the Rs 765 mark and bounced off sharply over the past few days, closing above the short-term averages. A reversal in RSI from its neutral Line-50 and positive crossover in the averages are confirming a breakout from the current level.
Crompton Greaves Consumer Electricals | Buy | Target price: Rs 272 | Stop loss: Rs 224
This stock has seen a breakout above the long-term averages with strong volumes. The recent price correction has created an opportunity for investors to enter at current level. “We believe the stock will recover prior losses and scale new highs,” said the analyst.
Rajesh Bhosale, Technical Analyst, Angel Broking
CESC | Buy | Target price: Rs 825 | Stop loss: Rs 738
After trading in a broad range between Rs 750 and Rs 650 over the past eight months, this stock has finally broken above the higher side of the trading range, confirming a channel breakout on the weekly chart. The said breakout was supported by the positive placement of oscillators and increasing volumes. “Technically, looking at all the above scenario, we sense the positive momentum may continue in the near term," said Bhosale.
Aditya Agarwala, Senior Manager, Technical Analysis, YES Securities
Suven Life Sciences | Buy | Target price: Rs 295-305 | Stop loss: Rs 255
On the daily chart, Suven Life Sciences is on the verge of a breakout from a sideways consolidation pattern placed at Rs 275. A successful breakout from the pattern can take the stock higher to Rs 295-305 levels. Further, on the weekly chart, the stock is making higher highs and lows, confirming the bullish trend. The RSI has also turned upward after taking support at the 40-level on the daily chart, suggesting bullishness on the counter.
VIP Industries | Buy | Target price: Rs 490-510 | Stop loss: Rs 430
On the daily chart, VIP Industries has turned upward after taking support at the 61.8 per cent Fibonacci retracement level at Rs 435. On the weekly chart, it is on the verge of a breakout from a trendline resistance suggesting higher levels in the coming sessions. The RSI has formed a positive reversal at the 45-level and turned northward, indicating bullishness on the counter.
Subash Gangadharan, Senior Technical Analyst, HDFC Securities
V-Guard Industries | Buy | Target price: 296 | Stop loss: Rs 218
V-Guard Industries has shown a lot of relative strength of late. The stock rallied smartly last week on the back of above-average volumes and closed at a 52-week high in the process. This augurs well for the uptrend to continue. The technical indicators are giving positive signals as the stock trades above its 13-day and 50-day SMAs. Intermediate momentum readings are in the rising mode, and not overbought.
Finolex Industries | Buy | Target price: Rs 537 | Stop loss: Rs 485
Shares of Finolex Industries have rallied smartly from Rs 440 level, where it formed a double bottom pattern. This week, the stock took a breather as it traded in a narrow range. The technical indicators giving positive signals, as the stock trades above the short-term (13-day SMA) and medium-term (50-day SMA) moving averages and intermediate momentum indicators like the 14-week RSI are in rising mode, and not overbought.
Vaishali Parekh, Senior Technical Analyst at Prabhudas Lilladher
Voltas | Buy | Target price: Rs 670 | Stop loss: Rs 580
This stock has been in a gradual rising trend and on the verge of a breakout above the Rs 635 level. The indicators look favourable for further upward movement in the coming days. The RSI is rising to improve the bias. “With good volume participation witnessed, we recommend a ‘buy’ rating on the stock for an upside target of Rs 670, keeping a stop loss at Rs 580," Parekh said.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Tech Mahindra | Buy | Target price: Rs 790 | Stop loss: Rs 725
This counter almost registered a Bullish Engulfing kind of formation with a low of Rs 729 in Friday’s session. Last two weeks' price action hinted at a durable bottom formation around Rs 720. Sustaining above the same, the stock can eventually retrace much of its lost ground from the highs of Rs 846–719. "Positional traders are advised to adopt a two-pronged strategy of buying now and add further on declines towards Rs 730 and look for a target of Rs 790," said Mohammad.
SRF | Buy | Target price: Rs 3,100 | Stop loss: Rs 2,800
After hitting a lifetime high of Rs 2,982, this counter is in consolidation mode and appears to be positioning itself for the next leg of upswing, as it is almost moving flat around the Rs 2,850 mark for the past couple of sessions. Sustaining above Rs 2,820, the stock can once again resume its upward move for an initial target of Rs 3,100 level.
Technical indicators are showing the short-term trend of Nifty is weak. Analysts feel a sustainable move below the key support at 11,760 level could have a negative impact on the market.
Analysts advise a stock-specific approach. Here are four stocks that look like potential buys for next week based on various technical indicators. These recommendations are from Milan Vaishnav, CMT, MSTA.
(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.)
Domestic barometer Sensex jumped over 360 points in early deals on gains led by IT, bank, metal and FMCG counters.
While it may look tempting to pick up cheaper stocks now, analysts advise investors not to get carried away and follow a prudent, stock-specific approach as the market appears vulnerable to profit taking at higher levels.
“The broader technical setup suggests no sustainable rally but only mild technical pullbacks. There are higher probabilities that in spite of the strong start, Nifty may lose strength going ahead,” said Milan Vaishnav, Consultant Technical Analyst at Gemstone Equity Research & Advisory Services.
Based on recommendations by various analysts and brokerages, here is a list of 10 stocks that look poised to deliver good returns over next 2-3 weeks.
Vikas Jain, Senior Research Analyst, Reliance Securities
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Balkrishna Industries | Buy | Target price: Rs 865 | Stop loss: Rs 745This stock has made a double bottom near the Rs 765 mark and bounced off sharply over the past few days, closing above the short-term averages. A reversal in RSI from its neutral Line-50 and positive crossover in the averages are confirming a breakout from the current level.
Crompton Greaves Consumer Electricals | Buy | Target price: Rs 272 | Stop loss: Rs 224
This stock has seen a breakout above the long-term averages with strong volumes. The recent price correction has created an opportunity for investors to enter at current level. “We believe the stock will recover prior losses and scale new highs,” said the analyst.
Rajesh Bhosale, Technical Analyst, Angel Broking
CESC | Buy | Target price: Rs 825 | Stop loss: Rs 738
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After trading in a broad range between Rs 750 and Rs 650 over the past eight months, this stock has finally broken above the higher side of the trading range, confirming a channel breakout on the weekly chart. The said breakout was supported by the positive placement of oscillators and increasing volumes. “Technically, looking at all the above scenario, we sense the positive momentum may continue in the near term," said Bhosale.
Aditya Agarwala, Senior Manager, Technical Analysis, YES Securities
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Suven Life Sciences | Buy | Target price: Rs 295-305 | Stop loss: Rs 255
On the daily chart, Suven Life Sciences is on the verge of a breakout from a sideways consolidation pattern placed at Rs 275. A successful breakout from the pattern can take the stock higher to Rs 295-305 levels. Further, on the weekly chart, the stock is making higher highs and lows, confirming the bullish trend. The RSI has also turned upward after taking support at the 40-level on the daily chart, suggesting bullishness on the counter.
VIP Industries | Buy | Target price: Rs 490-510 | Stop loss: Rs 430
On the daily chart, VIP Industries has turned upward after taking support at the 61.8 per cent Fibonacci retracement level at Rs 435. On the weekly chart, it is on the verge of a breakout from a trendline resistance suggesting higher levels in the coming sessions. The RSI has formed a positive reversal at the 45-level and turned northward, indicating bullishness on the counter.
Subash Gangadharan, Senior Technical Analyst, HDFC Securities
V-Guard Industries | Buy | Target price: 296 | Stop loss: Rs 218
V-Guard Industries has shown a lot of relative strength of late. The stock rallied smartly last week on the back of above-average volumes and closed at a 52-week high in the process. This augurs well for the uptrend to continue. The technical indicators are giving positive signals as the stock trades above its 13-day and 50-day SMAs. Intermediate momentum readings are in the rising mode, and not overbought.
Finolex Industries | Buy | Target price: Rs 537 | Stop loss: Rs 485
Shares of Finolex Industries have rallied smartly from Rs 440 level, where it formed a double bottom pattern. This week, the stock took a breather as it traded in a narrow range. The technical indicators giving positive signals, as the stock trades above the short-term (13-day SMA) and medium-term (50-day SMA) moving averages and intermediate momentum indicators like the 14-week RSI are in rising mode, and not overbought.
Vaishali Parekh, Senior Technical Analyst at Prabhudas Lilladher
Voltas | Buy | Target price: Rs 670 | Stop loss: Rs 580
This stock has been in a gradual rising trend and on the verge of a breakout above the Rs 635 level. The indicators look favourable for further upward movement in the coming days. The RSI is rising to improve the bias. “With good volume participation witnessed, we recommend a ‘buy’ rating on the stock for an upside target of Rs 670, keeping a stop loss at Rs 580," Parekh said.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Tech Mahindra | Buy | Target price: Rs 790 | Stop loss: Rs 725
This counter almost registered a Bullish Engulfing kind of formation with a low of Rs 729 in Friday’s session. Last two weeks' price action hinted at a durable bottom formation around Rs 720. Sustaining above the same, the stock can eventually retrace much of its lost ground from the highs of Rs 846–719. "Positional traders are advised to adopt a two-pronged strategy of buying now and add further on declines towards Rs 730 and look for a target of Rs 790," said Mohammad.
SRF | Buy | Target price: Rs 3,100 | Stop loss: Rs 2,800
After hitting a lifetime high of Rs 2,982, this counter is in consolidation mode and appears to be positioning itself for the next leg of upswing, as it is almost moving flat around the Rs 2,850 mark for the past couple of sessions. Sustaining above Rs 2,820, the stock can once again resume its upward move for an initial target of Rs 3,100 level.
Analysts advise a stock-specific approach. Here are four stocks that look like potential buys for next week based on various technical indicators. These recommendations are from Milan Vaishnav, CMT, MSTA.
(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.)
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