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15,000 crucial for bulls: Top 10 trading ideas that could give 9-20% return in 3-4 weeks

SBI, NTPC and Maruti Suzuki among top bets by experts

February 22, 2021 / 10:09 AM IST
2020 saw 250 SPACs listing on the US bourses raising nearly $83 billion.

2020 saw 250 SPACs listing on the US bourses raising nearly $83 billion.

 
 
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Indian market consolidated in a narrow range and closed below crucial support levels. The S&P BSE Sensex and Nifty50 closed with losses of more than 1 percent each.

Sectorally, the action was seen in power, Utilities, oil & gas, infra, and metal stocks while profit-taking was visible in auto, consumer durable, healthcare, IT, and FMCG names.

The Nifty50 closed below the crucial support placed at 15000 and the immediate support for the index is placed at 14750, but if bulls regain control then the immediate resistance at 15200 levels.

After a stellar rally from 13,600 to 15,430 on the Nifty and 46,200-52,516 on the Sensex, the market witnessed selling pressure. From the last four days, the index corrected by over 500 points.

The sell-off was so intense that the market could not sustain above the lowest levels of the previous week which was at 14977 on the Nifty50, and 50846 on the Sensex.

Close

On a weekly chart, the index has formed a bar reversal candlestick pattern that clearly suggests that in the short term weakness might continue in the near future.

“The medium-term texture of the market is still bullish and likely to continue if the nifty manages to trade above 15000/51000 levels. In such a scenario, we could see 15150/15200 (51600) levels where the market has spent maximum time during the recent fall,” Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities told Moneycontrol.

“On the flip side, a decisive break of 14900/50600, would result in retesting of 14750/50150, which was earlier resistance for the market before the announcement of the Union Budget,” he said.

Chouhan further added that the strategy should be to buy strong and heavyweight companies between 14850/50500 and 14750/50200 levels with a stop loss at 14600/49750.

We have spoken to different experts and here is a list of top 10 trading ideas for the next 3-4 weeks:

Expert: Mehul Kothari, AVP – Technical Research at AnandRathi

HUL: Buy| LTP: Rs 2181| Stop Loss: Rs 2080| Target: Rs 2,380| Upside: 9%

Recently, the stock corrected from the peak of 2450 and is now trading below the 2200 mark. At this point in time, the stock is hovering at the placement of 200-Days EMA and 200-D SMA which might act as buying zone.

Further, the support coincides with the placement of a long-term rising trend line.

In addition, the stock has the support of Inchimoku Flatline at current levels. The convergence of all the supports at similar levels makes the risk-reward lucrative to go long.

Thus, traders are advised to buy the stock in the range of 2180 - 2170 with a stop loss of 2080 for the upside potential target of 2380 in the next 3 – 5 weeks

Petronet LNG: Buy| LTP: Rs 251| Stop Loss: Rs 230| Target: Rs 285| Upside: 13%

In the past few weeks, Petronet has corrected from the peak of 275 and sneaked below 240 mark. Similar to HUL, the stock Petronet found support at the placement of its 200-D EMA and 200-D SMA near 235 mark.

This has acted as a demand zone for the stock. During Dec 2020; the stock confirmed a breakout above 260 mark from the ‘Cup and Handle’ pattern on the weekly scale and the pattern has a theoretical target of around 350.

Currently, the stock has retested that breakout zone and we expect the momentum to pick up from here on. Traders are advised to buy the stock in the range of 252- 248 with a stop loss of 230 for the upside potential target of 285 in the next 3 – 5 weeks.

SBI: Sell| LTP: Rs 400| Stop Loss: Rs 430| Target: Rs 370| Downside: 7.5%

In the month of Feb 2021 itself, SBI has rallied by more than 40% which has brought it into an overbought zone on a daily scale. The weekly RSI is now above 80 levels and we have observed that historically the stock undergoes some profit booking once the RSI reaches above 80.

Further on-line chart, the stock seems to be trading in a rising channel since the year 2011 and currently, it is hovering at the upper end of that channel.

The mentioned technical evidence indicates that the stock is poised for a considerable correction after the relentless run-up.

Thus we advise traders to sell the stock only on the bounce in the range of 405 – 415 with a stop loss of 430 for the downside target of 370 in the next 3 – 5 weeks.

Expert: Ashish Biswas, Head of Technical Research at CapitalVia Global Research Limited

Coforge: Buy| LTP: Rs 2566| Target: Rs 2845| Stop Loss: Rs 2480| Upside 10%

The stock is trading above 200-Days EMA which indicates a positive outlook on the stock. Coforge is trending in an upward trending channel and has reversed from the support line of the channel.

We recommend a buy above 2660. We can expect a target of 2845 from a medium-term perspective with a Stop Loss below 2480.

Maruti Suzuki: Buy| LTP: Rs 7328| Target: Rs 7940-8070| Stop Loss: Rs 7169| Upside 10%

The stock is trading above the 200-Days EMA which indicates a positive outlook on the stock. Maruti is also trading in an upward trending channel and has even reversed from 8 & 50-Days EMA support.

We recommend a buy above 7500. We can expect a target of 7940-8070 from a medium-term perspective, and a stop loss can be placed below Rs 7,169.70.

ONGC: Buy| LTP: Rs 105| Buy above Rs 112| Target: Rs 135| Stop Loss: Rs 97| Upside 20%

ONGC prices reversed from the support of 8 & 40-Days EMA. A recent cross-over of 8 & 50-Days EMA has been witnessed which indicates strength in the stock price.

We recommend a buy above 112, maintaining the target of 135 from a medium-term perspective, and a Stop Loss can be placed below 97.

Expert: Sameet Chavan, Chief Technical & Derivatives Analyst at Angel Broking

Ashok Leyland | Sell | LTP: Rs 124.45 | Target price: Rs 114 | Stop loss: Rs 128.60 | Downside: 8%

This automobile stock had a spectacular run over the last few months and finally last Friday, we witnessed the first sign of profit-taking.

The stock prices slipped convincingly below the 20-day EMA for the first time in the recent past and in the process, the 200-day SMA on the hourly chart also got broken.

On the front of the indicator, we can see the RSI-smoothened oscillator is sloping downwards which is a sign of short-term weakness in the stock.

United Breweries (UBL) | Sell | LTP: Rs 1,218.50 | Target price: Rs 1,145 | Stop loss: Rs 1,258 | Downside: 6%

The last three months have been fabulous for this counter. Although it started participating late in the market bull-run, it had a good catch-up rally.

Recently, the stock prices slipped into a consolidation mode, and with broader market correcting last Friday, this stock succumbed to the selling.

In the process, the daily charts exhibited a ‘range breakdown’ from the multiple time-tested support of Rs 1,230 on the closing basis.

The momentum oscillator reading too indicates extended profit-booking in the stock.

Expert: SMC Global Securities

NTPC: Buy| LTP: Rs 104.30| Target: Rs 115-118| Stop Loss: Rs 95| Upside 13%

The stock closed at Rs 104.30 on 19th February 2021. It made a 52-week low at Rs 73.20 on 23rd March 2020 and a 52-week high of Rs. 113.75 on 19th February 2021.

The 200-day Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 96.32. As we can see on the chart the stock has consolidated in the range of 80-104 levels for 11 months and has formed an “Inverted head and shoulder” pattern on weekly charts, which is bullish in nature.

Last week, the stock ended on verge of a breakout from a pattern along with volumes, as it gained over 8 percent. So buying momentum may continue for the coming days as well.

Therefore, one can buy in the range of 102-103 levels for the upside target of 115-118 levels, and a stop loss can be placed below Rs 95.

Pidilites Industries: Buy| LTP: Rs 1781| Target: Rs 1980| Stop Loss: Rs 1670| Upside 11%

The stock closed at Rs 1781.35 on 19th February 2021. It made a 52-week low of Rs 1185.55 on 25th March 2020 and a 52-week high of Rs. 1842.00 on 11th January 2021. The 200-day Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs 1572.87.

After witnessing a decent upside move, the stock has consolidated in a narrow range and formed a “Bullish Pennant” pattern on weekly charts, which is considered to be bullish.

Last week, the stock has given the breakout of same but couldn’t hold the high levels due to correction in the broader indices, but still ended with positive bias so further upside is anticipated from current levels.

Therefore, one can buy in the range of 1760-1770 levels for the upside target of 1950-1980 levels with a stop loss below 1670.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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