Indian market closed in the positive territory for the fourth consecutive week but experts feel that the market may witness a bumpy ride from hereon.
The Nifty50 is likely to consolidate in a narrow range, but a breakout above 10,900 or a breakdown below 10,600 is required to chart the direction of the market. Till then, we are in a no-trade zone.
"Ideally, if the market has to correct, this is the perfect zone from where it can. In fact, previously, we had clearly advocated booking-profits in the ongoing rally in the zone of 10,700-11,000 and we continue to do so at least for momentum traders," Sameet Chavan, Chief Technical & Derivatives Analyst at Angel Broking told Moneycontrol.
"But by no means, we advise going short on the market because the momentum in individual stocks is still strong and importantly, we are seeing a consensus opinion about the market correcting from the current levels," he said adding that the market has a mind of its own and does not necessarily follow the expectations of participants.
The Nifty would first surpass the 10,850 mark and head towards the 78.6 percent retracement zone of the entire fall i.e. 11,000-11,200, where we can see some profit-booking taking place, Chavan added.
We have collated stocks ideas from experts which could give 10-19% return in the next 3-4 weeks:
Expert: Umesh Mehta, Head of Research, Samco Group
Alkem Laboratories: Buy | LTP: Rs 2,421 | Target: Rs 2,700 | Stop Loss: Rs 2,275 | Upside 11%
The stock is in a good momentum on higher time frame charts whereas in the short-term it has mean reverted to crucial moving averages.
This presents a good buy on dips opportunity for entry. The stock should be bought with a target price of 27,00 and a stop loss of 2,275.
Tata Steel: Buy | LTP: Rs 338 | Target: Rs 400 | Stop Loss: Rs 335 | Upside 18%
Buy only on a break above Rs 350 which can quickly take the stock price to Rs 390 to Rs 400 levels. If the price breaks above Rs 350 than a stop at Rs 335 should be placed.
Globally there are talks of another infrastructure-led stimulus, if it becomes a reality, steel stocks would be the first to fly off the runway.
Expert: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
SBI Life Insurance: Buy | LTP: Rs 859 | Target: Rs 1,000 | Stop Loss: Rs 830 | Upside 16%
The stock is forming a running triangle. Although the stock is in the pullback mode, it is heading higher with bullish price gaps and a rise in delivery based volume. Technically, it should hit the level of Rs 1,000.
Escorts: Buy | LTP: Rs 1,137 | Target: Rs 1,300 | Stop Loss: Rs 1,080 | Upside 14%
On a weekly basis, the stock gained 7.25 percent and entered into the blue sky zone. On a weekly and daily basis, the major oscillator RSI was into the overbought territory but a reversal pattern was missing.
Such type of formations generally, acts as trending formation. The strategy should buy at Rs 1,140 and more at Rs 1,100. Traders could keep a final stop loss at Rs 1,080 and a target at Rs 1,300. Expert: Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors Ltd.
IndusInd Bank Limited: BUY | Buy Around: Rs 530 | Target Rs 630 | Stop Loss Rs 470 | Upside 19%
The scrip spurted from a low of Rs 330 after forming Bullish Harami candlestick pattern, it showed pullback on the upside after making the high of Rs 577 and started consolidating there. Currently, it is waiting for the breakout on the upside so that it can accelerate buying momentum further. The emerging line of polarity on the daily time frame of the chart is suggesting bullish momentum in the scrip. Indicators and oscillators are also showing a conducive scenario in the coming sessions. So based on the mentioned technical structure, one can go long in the scrip around Rs 530 for the target of Rs 630 mark with stop loss of Rs 470.
The stock is in an uptrend as it is forming higher tops and higher bottom on the weekly chart. After a week's negative to sideways correction, the stock is showing a resumption of uptrend. The stock has been forming an inverted Head & shoulder pattern and it is waiting for the breakout on the upside. The Average Directional Index (ADX) line, an indicator of trend strength, has moved above the equilibrium level of 20 with rising Plus Directional line on the weekly chart. Thus, traders can accumulate this stock around Rs 485 with a stop loss below Rs 435 and a target of Rs 575 levels.
Dabur India Limited - BUY | Buy Around: Rs 465 | Target Rs 515 | Stop Loss Rs 435 | Upside 10%
The stock saw a decline from Rs 515 to Rs 421. Since then, it has been consolidating in the Rs 465 to Rs 435 range at lower levels. On the weekly chart, the stock has formed a double-bottom reversal pattern. Volumes have been high at lower levels, indicating accumulation in the stock. After a recent rally from the lower end of the range, the stock formed higher lows, leading to an ascending triangle pattern on the daily chart. MACD has given a positive crossover with its average above equilibrium level of zero on the daily chart. Thus, stock can be bought at current levels and on dips to Rs 465 with stop loss below Rs 435 for a target of Rs 515 levels.
Expert: Manish Srivastava, Technical Analyst (equity & currency) at Rudra Shares & Stock Brokers Ltd.
State Bank of India: Buy | LTP: Rs 195.60 | Target: Rs 225 | Stop Loss: Rs 180 | Upside 15%
We have identified and recommended the stock earlier as well at Rs 158 levels when it was trading at a multi-year support zone. This is a follow-up call as the stock has bounced back from the important support levels and formed a bullish candlestick pattern on the monthly chart.
Bullish “harami” pattern has formed in the monthly time frame last month and follow up buying has also witnessed in the current month.
In the daily time frame, the stock is on the verge of breaking out from an “inverse head & shoulder” pattern. The RSI has started trading in a bullish zone for the first time in the current year and other momentum indicators are also trading with a bullish bias.
The upward slope of short term moving averages suggesting that stock is poised for a breakout and can be bought for short term gain.
Expert: Rajesh Palviya, Head - Technical and Derivative Research, Axis Securities
Century Plyboards (India) Ltd: LTP: Rs 132.50 | Buy Range: Rs 131-128 | Stop Loss: Rs 124 | Target: Rs 142-149 | Upside 12.45%
The stock has broken out from a “Rounding Bottom” formation, indicating increased participation by the bulls.
The weekly strength indicator RSI continues to maintain its bullish momentum, indicating a sustained uptrend.
Stochastic has given a bullish crossover on the weekly timeframe indicating bulls are in control. The stock is trading above all the major moving averages (20, 50 & 100 SMA) indicating a sustained uptrend.
Metropolis Healthcare Ltd: LTP: Rs 1,480.50 | Buy Range: 1,499-1,469 | Stop Loss: Rs 1,420 | Target: Rs 1,610 – 1,635 | Upside 10%
The stock has broken out from a “Cup & Handle” formation on the daily chart, indicating that the bulls have started showing interest at lower levels.
Both the weekly strength indicator RSI and momentum oscillator stochastic continue to trend higher, indicating that the bullish momentum is intact.
The stock is trading above all major moving averages (20 & 50 – day SMA) indicating a sustained uptrend.
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.
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