Hot Stocks: Here's why you should bet on Raymond, Bayer Cropscience for short term

Stock Market Ideas

The Indian equity market saw some respite in the closing session last week as the Nifty recouped from the lows to settle at 22,147, shedding 1.65 percent on a weekly basis.

Technically, it was a devastating week for the bulls as they got hammered throughout, showcasing a sentimental turnaround. Fortunately, there has not been a significant plunge in our indices, as the previous swing low proved its mettle. Though it would be early to claim that we are completely out of the woods and hence, caution is warranted.

The market conditions remain tentative till global uncertainty prevails and the same could be seen on the technical charts. As far as levels are concerned, the psychological mark of 22,000 withholds the intermediate support, followed by the strong support of the 21,800-21,700 subzone.

On the higher end, the 20 DEMA placed at 22,300, followed by a bearish gap of 22,430-22,500, is likely to act as a daunting task in the near period and an authoritative breakthrough could only re-strengthen the lost momentum to the bulls of D-Street.

Going ahead, we would likely to remain cautious amidst the ongoing geopolitical scenario, which may be deceptive and could trap the traders on either side. The week ahead is expected to be volatile amid the contract expiry; hence, a pragmatic approach with exclusivity in stock selection is advocated.

Here are two buy calls for short term:

Bayer Cropscience: Buy | LTP: Rs 5,716.9 | Stop-Loss: Rs 5,370 | Target: Rs 6,100-6,200 | Return: 8.5 percent

Bayer Cropscience has strongly recouped from the 200 SMA (simple moving average) in the last couple of trading sessions and has decisively surpassed the crucial hurdle of Rs 5,550, coinciding with a 50 percent Fibonacci retracement of the recent fall.

Meanwhile, on the daily chart, the counter seems to witness a ‘Cup and Handle’ pattern breakout, suggesting a buoyant potential upside in the coming period. On the oscillator front, the significant technical indicators are very much in line with the bullish development, adding a strong undertone to the counter.

Hence, we recommend buying Bayer Cropscience around Rs 5,680-5,650, with a stop-loss of Rs 5,370 and target of Rs 6,100-6,200.

Raymond: Buy | LTP: Rs 2,011.95 | Stop-Loss: Rs 1,890 | Target: Rs 2,170 | Return: 8 percent

Raymond witnessed a decisive spurt in price volume in the last trading session, soaring over 5 percent. The counter is also in a secular uptrend, hovering above all its major EMAs (exponential moving averages) on the daily chart, adding a bullish undertone.

From a technical standpoint, the counter has witnessed a ‘Flag’ formation breakout, followed by a decisive surpass beyond its sturdy resistance zone. On the oscillator front, 14-period RSI (relative strength index) and MACD (moving average convergence divergence) both signal a continuation move, suggesting a potential upside journey in a comparable period.

Hence, we recommend buying Raymond around Rs 1,990-1,970, with a stop-loss of Rs 1,890 and target of Rs 2,170.