Top six short-term trading picks in a rallying market: Analysts

MUMBAI: The Nifty was around 16-month high on Friday as investors continued to buy stocks across the board after the September series expiry. According to analysts, the market trend is likely to remain bullish with intermittent profit booking at higher levels.

Following are the top six trading picks that stand a chance to give good returns in the short term:

Shubham Agarwal, Associate Vice President, Senior Analyst Technical Equities, Motilal Oswal Securities

1) NHPC:

The scrip was correcting on the long term chart with a lower top and lower bottom formation. However, the sequence halted with multiple bottom in the band of Rs 17 - 17.50.

A symmetrical triangle has also been formed at the lower band which has confirmed a breakout on the upside. The odds favor direction towards the north and can be accumulated at current levels.

We recommend buying the stock at CMP of Rs 19 for a price target of Rs 23 and a stop loss can be placed at Rs 17.5.

2) Siemens:

Siemens is one of the components in the CNX INFRA which is outperforming the broader market. The outperformance from infra is expected to continue which can lead to another 10-15 per cent of gains. Siemens is less correlated with the Nifty and with the index is witnessing a time correction. Such stocks can do well.

The technical setup has turned positive after the breakout from the consolidation band of Rs 630 – 690. A small triangular pattern was formed which provides support at the level of Rs 674.

We recommend buying the stock at the CMP of Rs 704 for a price target of Rs 760 and a stoploss can be placed at Rs 674.

Chandan Taparia, Derivatives Analyst, Anand Rathi:

3) Havells India Ltd:

The stock has seen decent upmove and is trading near 52-week high. It is showing strength and can be bought on declines for an upmove of 4-5 per cent. Buy with a stoploss of Rs 310 for target of Rs 355-360 levels.

4) Tata Global Beverages Ltd:

After a consolidating for past seven weeks, the stock is again set for a positive movement. One can buy with stoploss of Rs 131 for the target of Rs 148-150 levels.

Mitesh Thacker, Technical Analyst, miteshthacker.com

5) Titan Industries Ltd:

The stock has been trading in a narrow range and also sustaining above 200-day moving average since February, 2012. The stock has registered a breakout from this consolidation range and closed above upper Bollinger band. On the weekly line chart, it has closed at its all-time high. The momentum indicator is also rolling upward.

We recommend a Buy at current level and again on dips up to Rs 250—252 with a stoploss placed below Rs 246.80 for targets of Rs 265-274.

6) Wipro:

The stock has been trading sideways after registering rally from the lows of Rs 325.30. Traders should note that this sideways consolidation has taken a form of a head and shoulder pattern.

Trading below Rs 372, the stock is likely to plunge towards the low of Rs 362-355-350 levels. The stock is also trading below cluster of moving averages. The momentum indicator is declining. Hence, we recommend sell below Rs 372 levels with a stop loss placed above Rs 382.60 levels for the above mentioned targets.

Disclaimer: The above report is based on technical views and information given by analysts. Please consult your financial advisor before taking any position in the stocks mentioned.