It seems that nationwide lockdown has not much impacted the fertilizer sector. In May 2020, the Indian Fertiliser industry has witness sales growth of 25% to 5 million tonnes as compared to 4 million tonnes in the same month last year. Coromandel International and Chambal Fertilisers have seen major sales growth in the sector. The research firm Prabhudas Lilladher is bullish on 5 stocks in the sector and among that they expect stock Insecticides India may see the upside of 82 percent, report dated June 09, 2020.
The Nifty closed 0.54 percent higher for the week-ended July 6 amid fears of a trade war between US and China and a depreciating rupee versus the dollar. The index closed above most of its crucial short term moving averages such as 5, 13, and 50-day exponential moving average (EMA) on the daily charts.
It failed to hold on to its crucial level of 10,800 and closed marginally above 10,770. Most analysts advise investors to wait for a breakout on either side before initiating fresh positions. But the way declines are getting bought into the downside remains fairly limited, they added.
“The market is yet to confirm a clear direction as the consolidation continues within recent boundaries. We would rather be comfortable becoming a follower and waiting for the decisive move outside the range.
On the upside, 10,820–10,840 are the levels to watch out for. On the flipside, 10,725 followed by 10,677 are likely to act as important support levels.
Recently, there has been a whipsaw in the downward direction. But now any decisive breakout in either direction is likely to trigger some momentum as well as a trended move,” Sameet Chavan, Chief Analyst, Technicals and Derivatives at Angel Broking, said.
Meanwhile, experts said investors should continue with a conventional approach of following stock-centric moves. During the week, cement counters performed well in line with the street expectations. Apart from this, marquee paint stocks showed tremendous outperformance towards the fag end.
Top 10 expert stock picks that could offer up to 13 percent return in the next 1-2 months:
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
State Bank of India: Buy| LTP: Rs257.45| Target: Rs 282| Stop Loss: Rs 250| Return 9.5%
This counter appears to be consolidation mode after retracing 62 percent of its recent up move from the lows of Rs232 – 290 levels thereby providing a short-term trading opportunity on the long side.
Hence, positional traders can buy SBI at current levels for a logical target of Rs282 on the higher side with a stop loss placed below Rs250.
Apollo Tyres: Buy| LTP: Rs 260| Target: Rs 279| Stop Loss: Rs 244| Return 7%
After registering double bottom around Rs246 levels, Friday’s up move on relatively higher volumes on Apollo Tyres clearly suggests that this counter might have initiated a fresh upswing.
The upswing should ideally take the stock towards its recent top of Rs279. Hence, traders can adopt a two-pronged strategy in this counter of buying now and on declines between Rs255 – 252 with a stop loss placed below Rs244.
L&T Finance: Buy| LTP: Rs 149.25| Target: Rs 164| Stop Loss: Rs 142| Return 10%
Recent correction from the highs of Rs170 brought this counter towards its long-term support levels of Rs145 where it witnessed some consolidation for the last 4 sessions.
Friday’s up move appears to be some sort of confirmation that consolidation phase is over and this counter is ready for a pullback attempt.
In that scenario, it should initially head towards Rs164 kind of levels. Hence, positional traders are advised to buy for a target of Rs164 and a stop loss placed below Rs 142.
Analyst: Dinesh Rohira, Founder & CEO, 5nance.com
Indo Count Industries Ltd: Buy| Target: Rs. 82 | Stop-loss: Rs. 65 | Return 13%
Indo Count Industries traded in a positive trajectory on its weekly price chart post its correction from the higher band of Rs134-99 levels towards 52-week low levels. It took a strong support at 60 odd levels to reverse the trend.
The scrip made a critical breakout from its 20-days EMA at 68 levels supported by strong volume trend on weekly basis, indicating a buying trajectory.
On the weekly price chart, the scrip registered a long bullish candlestick pattern indicating a sustainable rally post breaching crucial levels on the upside.
Further, the weekly RSI placed at 55 signaled a buying regime at a current level along with positive cues from MACD suggesting an upward shift.
The scrip is currently holding a long resistance at 98 and support level at 60. We have a buy recommendation for Indo Count Industries which is currently trading at Rs 72.55.
Berger Paints India Ltd: Buy | Target: Rs. 314 | Stop-loss: Rs. 278 | Return 6%
Berger Paints maintained an upward trajectory on the weekly basis despite trading in a sideways direction on its long-term price chart and continued to hold a crucial support from 260-244 levels.
After the recent consolidation phase from Rs293 levels towards higher-low of Rs274 levels, the scrip made a reversal trend on the weekly price to breach upward from its critical resistance.
The positive breakout on the weekly basis aided the scrip to form a bullish candlestick pattern indicating a positive sentiment at the current level.
The weekly RSI trend registered an upward momentum placed at 63 suggesting a buying regime along with MACD trading on a bullish momentum.
The scrip has a support placed at Rs270 levels and resistance at Rs325. We have a buy recommendation for Berger Paints which is currently trading at Rs. 296.55
Avanti Feeds Ltd: Sell | Target: Rs. 452 | Stop-loss: Rs. 495 | Return 5%
Avanti Feeds witnessed a sharp correction on the weekly price chart despite its attempt to reverse the trend but failed to vindicate the momentum during a consecutive session to slip from 100-days EMA levels placed at 554.
Further, it witnessed a weak volume support on the weekly basis indicating a sustained pressure on short-term basis. The scrip formed a solid bearish candlestick pattern on its weekly price chart after breaching below important level indicating a sustained pressure.
Further, the secondary momentum trend continued to indicate negative signal with RSI slipping below at 32 coupled with the bearish outlook from MACD trend.
The scrip is facing a resistance at Rs542 levels and crucial support from 200-days EMA at Rs407 levels. We have a sell recommendation for Avanti Feeds which is currently trading at Rs. 475.4.
Analyst: Sameet Chavan, Chief Analyst, Technicals, and Derivatives at Angel Broking
ACC: Buy| LTP: Rs. 1,373.70| Target: Rs1420| Stop Loss: Rs 1348| Return 3%
Since the last three weeks, we have been upbeat on this stock after forming a strong base around Rs1250. Last week, we witnessed a good positive traction in the counter and now the way daily as well as weekly charts are shaped up, the stock is likely to continue its northward trajectory.
Due to Thursday’s move, the stock prices finally confirmed a breakout on the short term chart. Since the volume activity was well above its average daily volumes, we interpret Friday’s correction as a pullback move. We maintain our near-term target of Rs. 1,420. Traders can keep their stop losses below Rs.1,348.
United Spirits: Sell| LTP: Rs. 635.55| Target: Rs 605| Stop Loss: Rs 653| Return 4%
Most of the ‘Liquor’ counters took a hammering after Karnataka government imposing additional excise duty on Indian-made liquor. ‘United Spirits’ corrected sharply post this development and in this course of action, slipped below its crucial near-term support of 640 on a closing basis.
This coincided with the ‘200-day’ SMA as well, which certainly does not bode well for the stock. On Friday, we did see some respite, but we would rather construe this bounce back as a good selling opportunity. Hence, one can look to go short for a target of Rs.605 by following a strict stop loss of Rs.653.
Brokerage Firm: SMC Global Securities
GAIL (India) Limited: Buy| LTP: Rs 344.20| Target: Rs 365-370| Stop Loss: Rs 315| Return 7.5%
The stock closed at Rs 344.20 on 6th July 2018. It made a 52-week low at Rs 266.63 on 7th July 2017 and a 52-week high of Rs. 389.63 on 28th December 2017. The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently placed at Rs 331.37.
The stock had registered a decent upside from Rs250 to 390 levels and witnessed profit booking from higher levels. Moreover, it managed to hold and trade around Rs320 levels, which was the 50% Fibonacci retracement levels of recent upside and started moving higher so buying momentum can continue for coming days.
Apart from this, technical indicators are also suggesting buying for the stock. Therefore, one can buy in the range of 335-340 levels for the upside target of Rs365-370 levels with a stop loss placed below Rs 315.
Mahindra & Mahindra Limited (M&M): Buy| LTP: Rs 924.95| Target: Rs1000| Stop Loss: Rs 860| Return 8.2%
The stock closed at Rs 924.95 on 6th July 2018. It made a 52-week low at Rs 589.23 and on 27th September 2017 and a 52-week high of Rs. 933.50 on 31st May 2018. The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs 782.54
The short-term, medium term, and long-term bias look positive for the stock as it is continuously trading in higher highs and higher lows on weekly charts which is bullish in nature.
Moreover, it was consolidating in a narrow range for five weeks, formed a “Bullish Pennant” pattern, which is considered to be bullish. Last week, the stock has given the breakout of pattern and also managed to close above the same so follow up buying may persist for near term.
Therefore, investors can buy in the range of Rs910-920 levels for the upside target of Rs980-1000 levels with a stop loss placed below Rs860.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.