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Hot Stocks | Kansai Nerolac, Asian Paints, Havells can give 12-17% return in short term

Secondary oscillators suggest that the market is likely to witness negative bias in the coming sessions as long as Nifty is trading below 15,800, said Shitij Gandhi of SMC Global Securities.

July 22, 2021 / 07:18 AM IST
 
 
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After hitting a record high last week, the Indian market witnessed selling pressure at higher levels and Nifty slipped below the crucial support of 15,700 tracking weak global cues.

Metal and realty counters were worst hit while cement and paint stocks were on top of the leaderboard.

On the derivatives front, Call writers remained active at 15,700 and 15,800 strikes while Put writers shifted to lower bands.

On the technical front, Nifty has been struggling in a broader range of 15,450-15,950 for a long time and now once again 15,500 to 15,450 zone would act as a strong support area in the coming sessions.

Close

Secondary oscillators suggest that the market is likely to witness negative bias in the coming sessions as long as Nifty is trading below 15,800.

We can expect stock-specific action in the coming week rather than any directional move in the market.

Here are three buy calls for the next 3-4 weeks:

Kansai Nerolac Paints | LTP: Rs 615.30 | Target price: Rs 688 | Stop loss: Rs 565 | Upside: 12%

After hitting its 52-week high of Rs 680 in January, this stock witnessed a pullback and fell towards its 50-day exponential moving average on the daily charts to take support around Rs 540.

Since then, it has been fluctuating in the range of Rs 540-600. Now after a prolonged consolidation of nearly six months, it has given a breakout above its key resistance level of Rs 600.

On the daily charts, it is well-placed above its short and long-term moving averages. Traders can accumulate the stock in the range of Rs 608-618.

Asian Paints | LTP: Rs 3,145.05 | Target price: Rs 3,550 | Stop loss: Rs 2,920 | Upside: 13%

It has been maintaining its uptrend and seen trading in a rising channel on broader charts with the formation of the higher high and higher bottom.

However, for the last one month, this stock has been fluctuating in a broader range of Rs 2,950-3,090 along with multiple supports on short-term intervals and at its key moving averages.

At the current juncture, it has given a fresh breakout above the consolidation zone with larger volumes.

The price-volume action with breakouts suggests a long build-up in the stock. Traders can accumulate the stock in the range of Rs 3,150-3,160.

Havells India | LTP: Rs 1,097.95 | Target price: Rs 1,285 | Stop loss: Rs 995 | Upside: 17%

After testing the level of Rs 1,231 in February, this stock took a breather and retraced towards Rs 1,000.

Since then it has been fluctuating in a broader range of Rs 980-1,100. At the current juncture, this stock has formed a rounding bottom pattern on the daily charts.

It has regained momentum above its important hurdle of Rs 1,100. Rising volumes along with positive divergences on the secondary oscillators suggest the next upswing in the prices.

Traders can accumulate the stock in the range of Rs 1,095-1,105.

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.
Shitij Gandhi is a senior technical analyst at SMC Global Securities
first published: Jul 22, 2021 07:15 am

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