The market rebounded from a week of sharp correction and reclaimed the psychological 22,000 mark on the Nifty 50 by the end of trade on March 22. The trend is likely to continue in the coming days, provided the index holds the 22,000 level. Along the way up, the Nifty may face hurdles at 22,250-22,300 and, if this level is broken decisively, then a record high can't be ruled out. On the downside, it the index breaches the 22,000 level, then 21,900 is going to be next support level and then 21,700, the low of the last week, according to experts.
The benchmark Nifty 50 climbed third of a percent during the week ended March 22 and closed at 22,097, forming a bullish candlestick pattern with long lower shadow on the weekly charts, indicating buying interest at lower levels, after a long bear candle in the previous week.
Volatility cooled down considerably last week, giving more comfort for bulls. The India VIX, the fear index, fell 10.74 percent during the week to 12.22 level.
"For now, 21,900-21,850 is likely to cushion any short-term blip, with a major focus on the swing low of 21,700, breaching which disruption on chart structure could be seen in the upcoming truncated week," Osho Krishan, senior analyst for technical and derivative research at Angel One, said.
On the higher end, he feels 22,200-22,250 is expected to act as an intermediate hurdle, and an authoritative closure above the same could only bring some mojo back into the market.
Shilpa Rout, AVP of Derivatives Research at Prabhudas Lilladher, also sees support for the Nifty at 21,700 and the resistance is very strongly placed around 22,300. "Until we breach either side of the range, the same kind of volatility might continue."
Moneycontrol collated a list of top 10 stock ideas from experts, with 3-4 weeks perspective. The closing price of March 22 is considered for stock price return calculation.
Expert: Subash Gangadharan, senior technical/derivative analyst at HDFC Securities
Aptech: Buy | LTP: Rs 241 | Stop-Loss: Rs 210 | Target: Rs 280 | Return: 16 percent
The stock is now in a healthy short term uptrend after making a double bottom pattern around Rs 201 levels. On last Thursday, the stock has broken out of its recent trading range on the back of healthy volumes, which augurs well for the uptrend to continue.
Technical indicators are giving positive signals as the stock is trading above the 20-day SMA (simple moving average) and momentum indicators like the 14-day RSI (relative strength index) are in rising mode and have crossed their previous highs, suggesting that momentum is picking up.
Buying can be initiated at CMP (Rs 241), and more can be added on dips down to Rs 230. Upside target is at Rs 280 in the next 3-5 weeks. Place a stop-loss of Rs 210.
GMR Airports Infrastructure: Buy | LTP: Rs 78.65 | Stop-Loss: Rs 74 | Target: Rs 89 | Return: 13 percent
The recent downward correction seems to have halted. The stock has bounced back from the low of Rs 73, which is close to its previous intermediate lows. And last week, the stock has broken out of the recent trading range of Rs 73-78.75.
Buying can be initiated at CMP (Rs 78.65), and more can be added on dips down to Rs 77. Upside target is at Rs 89 in the next 3-5 weeks. Place a stop-loss of Rs Rs 74.
Ceat: Buy | LTP: Rs 2,593 | Stop-Loss: Rs 2,450 | Target: Rs 2,800 | Return: 8 percent
After a sharp fall in the stock last week that saw it testing a low of Rs 2,428, Ceat has bounced back strongly last week and taken out its recent swing high of Rs 2,565. In the process, momentum readings like the 14-day RSI too have bounced back strongly from oversold levels.
One may look to buy Ceat at CMP (Rs 2,593), add more on dips down to Rs 2,530 and wait for the upside target of Rs 2,800 in the next 3-5 weeks. Place a stop-loss of Rs 2,450.
Expert: Shrikant Chouhan, head equity research at Kotak Securities
Cummins India: Buy | LTP: Rs 2,930.8 | Stop-Loss: Rs 2,840 | Target: Rs 3,150 | Return: 7.5 percent
On the short-term time frame, the stock has witnessed remarkable up move from the lower levels. In addition, on weekly charts, it has formed long bullish candle, which is indicating further uptrend from current levels.
The texture of the pattern suggest breakout action will continue in the near term. For the breakout traders Rs 2,840 would be the key level to watch out, above the same it could move up to Rs 3,150 levels.
HDFC Life Insurance Company: Buy | LTP: Rs 624 | Stop-Loss: Rs 600 | Target: Rs 670 | Return: 7.4 percent
On the weekly scale, the counter is into a rising channel chart formation with higher high and higher low series pattern. The technical indicators like ADX (average directional index) is also indicating further up trend from current levels, which could boost the bullish momentum in coming horizon.
As long as the stock is trading above Rs 600, the uptrend formation is likely to continue. Above which, the counter could move up to Rs 670.
Tata Steel: Buy | LTP: Rs 152 | Stop-Loss: Rs 145 | Target: Rs 162 | Return: 7 percent
The stock has shown a robust rally from the lower levels in the recent trading sessions. Moreover, there is a fresh breakout along with decent volume activity from the triangle chart formation.
As a result, the comfortable close above its breakout levels suggest upward momentum to persist in the coming horizon. Unless it is trading below Rs 145 positional traders can retain an optimistic stance and look for a target of Rs 162.
Expert: Om Mehra, technical analyst at SAMCO Securities
Gujarat Gas: Buy | LTP: Rs 529 | Stop-Loss: Rs 500 | Target: Rs 575 | Return: 9 percent
The stock surged from its support zone in the past two trading sessions with significant volume, signalling strong buying interest. The RSI's recovery from 35 to around 41 also suggests increasing strength in the stock.
Furthermore, the Hammer formation near the support zone indicates investors are turning bullish. The lower Bollinger Bands indicate strong support as well. If the stock manages to break above Rs 532 level, it could further move higher.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 529 for a target price of Rs 575. The stop-loss can be kept at Rs 500.
Computer Age Management Services: Buy | LTP: Rs 3,089 | Stop-Loss: Rs 2,950 | Target: Rs 3,350 | Return: 8.4 percent
Computer Age Management Services stock reveals a strong recovery after a decent correction, forming a sturdy base around Rs 2,900 level. The stock is currently trading above the 20 DMA indicating positive momentum. The daily chart reveals volume is ticking up with price rise. The RSI is gradually inching higher confirms the strength in the stock.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 3,085 for a target price of Rs 3,350. The stop-loss can be kept at Rs 2,950.
Expert: Riyank Arora, technical analyst at Mehta equities
Shriram Properties: Buy | LTP: Rs 115 | Stop-Loss: Rs 99 | Target: Rs 140 | Return: 22 percent
The stock has given a good breakout above its 21-period EMA (exponential moving average), indicating a strong sign of momentum and strength. With the ADX on the daily timeframe being at 37.08, momentum looks strong, and the stock is poised for a good upside rally.
Volume in Friday's session was slightly more than the average (30) days traded volume on the stock, which depicts strength on the counter. A strict stop-loss should be kept at Rs 99 mark for potential upside target of Rs 140 and above.
Juniper Hotels: Buy | LTP: Rs 505.45 | Stop-Loss: Rs 469 | Target: Rs 600 | Return: 19 percent
The stock has given a strong breakout above its recent swing high mark of Rs 503.70 on the daily timeframe charts, supported by its moving averages (5 and 9-period EMA, respectively).
With the RSI (14) on daily charts being around 67.51, momentum is looking positive on the counter. In Friday's session, the stock has also given a good re-test to its breakout zone, which makes the stock an attractive buy at current levels with a low-risk stop-loss that can be kept at Rs 469 mark for potential upside target of Rs 600 and beyond.
Azad Engineering: Buy | LTP: Rs 1,331.75 | Stop-Loss: Rs 1,200 | Target: Rs 1,465 | Return: 10 percent
The stock has given a good breakout above its important moving averages and indicated good follow-up buying above its recent high of Rs 1,269.50. The stock was locked at a 5 percent upper circuit in Friday's session, with the volumes being slightly higher than the average (30) days traded volume.
With the ADX being near 20.12, momentum is still on the lower side, and the stock should be eyed as a good buy near Rs 1,275 - 1,300 odd levels with a stop- loss kept at Rs 1,200 for potential upside target of Rs 1,465 and above.
Disclaimer: The views and investment tips expressed by investment 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.
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