The Indian market consolidated last week with benchmark indices managing to close the week on a positive note. The rupee closed above the Rs 70 per dollar for the first time. Momentum remains strong and experts advise traders to stay long and use dips as a buying opportunity as long as the index holds 11,340 levels. They see upside resistance at 11,500-11,550 levels.
Global clues will continue to dominate market sentiments in the absence of any major domestic events. The rupee will be in focus as it closed above the Rs 70/$ for the first time. Most experts feel the weakness is likely to continue in the near term largely weighed down by dollar strength and external factors.
“Despite a lot of global uncertainty, our market managed to produce a remarkable session on Friday. Of late, we have been clearly bucking the trend and it appears that global peers have finally bought into our optimism. The index is now within kissing distance from the 11,500 milestone,” Sameet Chavan, Chief Analyst – Technicals and Derivatives at Angel Broking, told Moneycontrol.
He expects momentum to pick up after surpassing 11,495. “Hence, it is advisable to stay with the flow rather than becoming sceptical of the move. The support now would be in the 11,431-11,340 range. As long as these levels hold, use dips to buy into the market.”
Here is a list of 10 stocks that could return 5-13 percent in the next 1 month:
Analyst: Sameet Chavan, Chief Analyst, Technicals, and Derivatives at Angel Broking
Nilkamal Ltd: Buy| Target: Rs 2105| Stop Loss: Rs 1772| LTP: Rs 1869.90| Return 12%
Since the last fourteen months, this stock has been vacillating within the boundaries of a triangular pattern. Recently, the stock prices gave a smart surge from the lower boundary and in the course of action managed to configure a positive structure.
The encouraging part of this move is that we saw huge volume participation, which has picked up substantially. Although, the stock is yet to confirm a breakout from this multi-month ‘Triangle’, we recommend buying this stock with an anticipation of the development.
The potential upside target can be foreseen at Rs.2105 and stop loss at Rs.1772.
Tata Steel Ltd: Buy| LTP: Rs 576.70| Target: Rs 610| Stop Loss: Rs 561| Return 6%
‘Metal’ stocks did well in the penultimate week and ‘Tata Steel’ was one of the outperforming stocks within this space. Post the recent breakout, the stock prices consolidated within a range in the week gone by.
However, the Friday’s close was extremely encouraging and looking at the weekly close; we expect the stock to resume a fresh leg of the rally.
We still continue with our positional target of Rs.610 in coming weeks. The stop loss now can be revised at Rs.561.
L&TFH: Buy| LTP: Rs 180.72| Target: Rs 201| Stop Loss: Rs 172| Return 11%
The daily chart depicts a ‘Bullish Flag’ pattern which is yet to be activated. But, looking at Friday’s strong price and volume activity, we expect the breakout soon.
In addition, the placement of ‘RSI-Smoothened’ oscillator on a weekly chart adds further conviction to this opinion.
Since the ‘midcap’ index is now well poised, we expect the stock to move in tandem with the index. We recommend buying for a positional target of Rs.201 in coming weeks. The stop loss now can be placed at Rs.172.
Analyst: Jayant Manglik, President, Religare Broking Ltd,
Sun Pharma Ltd: Buy| LTP: Rs 623.50| Target: Rs 700| Stop Loss: Rs 590| Return 12%
We have seen multiple positive developments in the pharma space of late and Sun Pharma too participated in the move. It surpassed the hurdle of long-term averages on the weekly chart and gained nearly 12 percent.
The chart pattern is clearly indicating a strong up move to follow. The stock can be accumulated in the range of Rs 615-625 with closing below stop loss below Rs 590 and a target of Rs 680-700.
DHFL: Buy| LTP: Rs 670.35| Target: Rs 760| Stop Loss: Rs 630| Return 13%
It has been consolidating in a broader trading range of Rs 500-680 for the last eight months, after a failed attempt to surpass the hurdle of a record high.
Now, it has reached closer to the upper band of this consolidation range and is likely to witness a breakout from the same in the near future.
The opportunity shouldn’t be missed and thus the stock can be accumulated in the range of Rs 665-674 with a stop loss below Rs 630 and a target of Rs 760.
Analyst: Gaurav Ratnaparkhi of Sharekhan by BNP Paribas
Ambuja Cements: Buy| LTP: Rs 228| Stop loss: Rs 220| Target: Rs 252| Return: 10%
The stock has completed a three wave correction after an Impulse on the upside. Post the correction, the stock has taken support near the key daily moving averages. Hereon, next set of Impulse is expected to start on the upside.
Raymond: Buy| LTP: Rs 794| Stop loss: Rs 756| Target: Rs 900| Return: 13%
The stock has formed an Ending Diagonal pattern after a substantial fall & has broken out on the upside in the last session. The daily momentum indicator is showing a positive divergence, which is a bullish sign.
Analyst: Rajesh Palviya, Head – Technical & Derivatives Analyst, Axis Securities
Yes Bank: Buy| LTP: Rs 395| Target: Rs 412-419| Stop Loss: Rs 374| Return 6-8%
The stock was in a consolidation phase since July 2017. With current week’s gain, the stock has decisively broken out from its consolidation range and has closed above its stiff resistance of Rs 375 levels on closing basis.
In the last session, the stock has witnessed an increase in volumes which supports bullishness in the near-term. The daily strength indicator RSI and the momentum indicator Stochastic both have given positive crossover which supports bullish sentiments in the near term. The stock is well placed above its 20, 50 and 100 day SMA which supports bullish sentiments ahead.
Aurobindo Pharma: Buy| LTP: Rs 654.55| Target: Rs 668-675| Stop Loss: Rs 622| Return 4-5%
On the weekly chart, the stock has broken out its consolidation range and has decisively broken its resistance of 650 levels on a closing basis and is sustaining above the same.
This breakout is accompanied by an increase in volumes which supports bullish sentiments ahead. The daily and weekly strength indicator RSI and the momentum indicator Stochastic both are in a positive terrain which supports upside momentum to continue in the near-term.
The stock is well placed above its 20, 50 and 100 day SMA which supports bullish sentiments ahead.
Tata Chemicals Ltd: Buy| LTP: Rs 709.7| Target: Rs 727-736| Stop Loss: Rs 682| Return 4-5%
On the weekly chart, the stock price has bounced back from its strong support of 648 levels and is accompanied with a huge spurt in volumes which supports bullish sentiments ahead.
The weekly strength indicator RSI has given positive crossover and the momentum indicator Stochastic has continued to move upwards which supports bullish sentiments in short to medium term. The stock is well placed above its 20, 50 and 100 day SMA which supports bullish sentiments ahead.