The BSE Sensex hit a new high on October 31, while the Nifty is 200 points away from breaching 12,103, its best showing.
Investors should stay with stocks that are likely to show momentum in the next nine-12 months as the Nifty is expected to touch 12,800-13,000, says experts.
"The market is clearly in a positive setup with festive season seeing improvement in demand and corporate tax rate cut providing the much-needed earnings boost,” Naveen Kulkarni, Head of Research, Reliance Securities, told Moneycontrol.
He said the market would continue to trend upwards. “We have an April 2020 Nifty target of 12,800,” he said.
Based on technicals, the Nifty has been making higher bottoms and higher tops since 2017, which indicate that the index is in an uptrend from a medium to long-term perspective.
“After making a high of 12,103 in June 2019, the market has seen a correction towards 10637 in Aug 2019, which coincides with the earlier support zone of Jan to March 2019 consolidation period,” said Viral Chheda, Sr Analyst, SSJ Finance & Securities.
“Market is continuously taking support at (T1) trend line and prices are moving in a channel and the channel target form medium to long-term perspective comes around 13,000-13,500 which can be achieved in next one to two years time horizon, risk for this view will be a close below 10,500 levels.”
Based on technical parameters, we have collated from various brokerages a list of stocks that can give a 13-30 percent return in the next 12 months. Returns are calculated based on October 30 closing price:
Analyst: Mustafa Nadeem, CEO, Epic Research
Voltas Ltd: Buy: LTP: Rs 713| Target: Rs 775-830| Stop Loss: Rs 650| Upside: 16 percent| Time Horizon: 1 year
The air-conditioner market has seen robust growth in the last few years and we believe the penetration has seen expansion, which is still comparatively very low to other markets. Voltas is a leader in this segment and the price structure weathered the recent negative sentiments in the market.
The stock has given a fresh breakout and with demand picking up in the festival season, the outperformance may continue with a higher target of Rs 775.
Titan Company Ltd: Buy| LTP: Rs 1,315| Target: Rs 1,496| Stop Loss: Rs 1,270| Upside: 13 percent
It is one of our top picks, as the company has sound fundamentals and has seen consistent growth in the last few years. The business has seen expansion through various JVs and it is aiding the bottom-line and top line.
This is a must stock because it could well give consistent growth in portfolio and can see Rs 1,496 levels.
DCB Bank: Buy| LTP: Rs 176| Target: Rs 225| Stop Loss: Rs 150| Upside 27 percent| Time Horizon: 1 year
This is an outperformer in the smallcap space that has seen consistent growth in the last few years in the private banking space.
Recent numbers validate its standing, as the net profit for the September quarter stood at Rs 91 crore, while the operating profit saw a double-digit growth.
A recent correction in prices was due to flat NIM, but we believe the stock will continue to provide stellar growth in the next few years. It is a buy for a target of Rs 225
Analyst: Santosh Meena, Senior Analyst, TradingBells
ICICI Lombard General Insurance is in a strong uptrend, where the counter has broken out a bullish continuation pattern of Cup and Handle after a long consolidation of six months. The bullish momentum is likely to continue, where it may see the level of Rs 1,600 in the next six months.
HDFC Ltd: Buy| LTP: Rs 2,106| Target: Rs 2,500| Upside: 18 percent| Time Horizon: 6-8 months
It is the strongest player in the NBFC camp, as it remained in the uptrend amid major problems in the sector. On the technical front, it has formed a double- bottom formation, where Rs 2,195 will be the breakout point, whereas momentum indicators are also positive.
It has moved above all its important moving averages and we expect an upside target of Rs 2,500 in the next six to eight months.
Pidilite Industries: Buy| LTP: Rs 1,365| Target: Rs 1,600| Upside 17 percent| Time Horizon: 2-3 months
The overall trend of the Pidilite is bullish. After a decent correction from its 52-week high, it is forming a base around the previous breakout point of 1,300 which coincides with its 100-DEMA.
Therefore, it provides a favourable risk-reward opportunity for traders, where we can expect a target of Rs 1,600 in the next couple of months.
Analyst: SSJ Finance & Securities
On the weekly chart, we have seen that the stock has given a sharp upside rally from its level of Rs 692 in Jan 2017 to Rs 1,417 in June 2018. The stock has retraced almost 58 percent of its previous rally to make a low of Rs 1,002 in October 2018.
Volumes were marginally lower as compared to the previous rally. From the lows of Rs 1,002 in October 2018, the stock rallied for the next six months to touch an all-time high of Rs 1,556 in May 2019.
From May to September, the stock has moved sideways in the range of Rs 1,398-1,556, making a Rectangle Pattern. After accumulation in the range, the stock breached on the higher side and gave a sharp upside rally to make a new high of Rs 1,684 in September.
For the last three-four weeks, the stock is moving above the higher level of the Rectangle Pattern and has strong support at Rs 1,556. We can see upside rally from this level.
RSI is also moving above Red Line, a good signal for further upside. Multiple supports are at Rs 1,555-1440-1390 and resistances are at Rs 1,684-1760-1870.
We suggest traders buy Kotak Mahindra Ltd at Rs 1,615 and more at Rs 1,530, for the target of Rs 1,871, which can be achieved within the time horizon of nine-12 months
Britannia Industries Ltd: Buy| LTP: Rs 3,289| Target: Rs 3,895| Upside 18 percent| Time Horizon: 9-12 months
On the weekly chart, from August 2018 to October 2019, the stock has moved in a Downward Moving Trend Line, taking supports at every lower level and facing resistance at a higher level.
In the previous week, the price breached the pattern on the higher side and closed above the pattern, which indicates further upside rally.
Multiple supports are placed at Rs 3,050-2,920-2,800 and resistances are at Rs 3,470-3,580-3,700. We suggest traders buy Britannia Ltd at Rs 3,253 and more at Rs 3,050, for our targets of Rs 3,895, in the coming nine to 12 months period
HUL: Buy| LTP: Rs 2,169| Target: Rs 2,475| Upside 14 percent| Time Horizon: 9-12 months
On the weekly chart, from December 2018 to September 2019, the stock moved in the range of Rs 1,650-1870 forming a Rectangle Pattern. Once it breaches the higher level, we can see a new all-time high of 2100.
For the last three-four weeks, the stock is moving above the higher level of rectangle pattern and with an increase in volume, we can see further upside rally.
Multiple supports are placed at Rs 2,000-1,870-1,780 and resistances are seen at Rs 2,230-2,350-2,450. We suggest traders buy the stock for a target of Rs 2,475, in the coming nine to 12 months’ period.
Century Plyboards: Buy| LTP: Rs 163| Target: Rs 220| Upside 34 percent| Time Horizon: 9-12 months
On the weekly chart, we have seen the stock move in the range for three months, from Apr 2018 we can see sharp selloff for the next 16 months to make a low of 112 in August 2019.
In this period, the stock made Lower Top and Lower Bottom Pattern. From the lows of 112, we see upside rally. In October 2019 it breached the ‘Downward Moving Trend Line’ at 163 and moving above the trend line indicates further upside.
The RSI Oscillator is also moving above the red line, a good sign. Multiple supports are at Rs 147-132-120 and resistances are at Rs 174-188-200.
We suggest traders buy Century Plyboards Ltd for a target of Rs 220, with a time horizon of nine to 12 months.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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