Hot Stocks: Here's why ITC is the top buy of the week

We advise traders to continue with a stock-centric approach. It is advisable to stay light and avoid aggressive bets till the time global volatility subsides, said Sameet Chavan

May 17, 2021 / 07:14 AM IST
 
 
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The weakness across the globe became the real concern and did not let our markets go beyond the recent consolidation range.

But, we must also accept the fact that we have outperformed our global peers significantly as we did not fall as much as other global indices.

We still remain directionless and completely clueless about which way we are heading now.

It would be wise to mention few key levels and keep a close track of them in the first half of the forthcoming week. For Nifty, 14,540 followed by 14,400 are key levels.

Close

A sustainable move below the lower range would certainly dent the possibility of some positivity in the short term.

On the flipside, 14,750 – 14,830 are key hurdles. If we have to regain strength then Nifty needs to go beyond 14,830 first.

Similar to the previous week, we witnessed ample thematic moves playing out one after another. Only on Friday there was no clear winner. Even the broader market saw quite a correction, which is not an encouraging sign.

We advise traders to keep a tab of all the above-mentioned levels and meanwhile continue with a stock-centric approach. It is advisable to stay light and avoid aggressive bets till the time global volatility subsides.

Here is a list of stocks for the next 1-3 weeks:

ITC: Buy| LTP: Rs 212: Target: Rs 222| Stop Loss 202| Upside 5%

This has been one of the most loved stocks by the investors as well as traders. But, it has failed miserably to live up to its expectations time after time.

Let’s see what the short-term trend looks like. The overall price action in the period of November’20 to early part of February this year was excellent, but since then we have been witnessing a complete lull in the stock.

After experiencing some correction from recent highs, the stock went into a consolidation mode and spent some time around its cluster of key moving averages.

On Friday, we unexpectedly witnessed a surge in prices along with sizable volumes. Thus with the hope, it will continue its momentum, we recommend going long on a minor dip towards Rs 209 – 207 for a target of Rs 222 in the coming days. A strict stop loss can be placed at Rs 202.

Dr Lal PathLabs: Sell| LTP: Rs 2,721| Target: Rs 2,600| Stop Loss: Rs 2,792| Downside 4%

This pathology stock seems to have lost its sheen now as we are seeing consistent corrective moves over the past few weeks. Taking a glance at the daily chart, we can see price sliding below its key support of Rs 2,800 on a closing basis.

Price-wise, it confirmed a ‘Lower Top Lower Bottom’ on the daily chart which is a sign of short-term weakness. Since it has already come off quite a lot from recent highs and is approaching its strong support zone, we recommend selling for a conservative downside move.

Momentum traders can look to go short for a target of Rs 2,600 in the coming days. A strict stop loss can be placed at Rs 2,792.

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.
Sameet Chavan

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