Last week was a volatile one for Indian markets but bulls managed to push benchmark indices higher by over a percent each. The S&P BSE Sensex climbed Mount 37K, while Nifty50 closed above its crucial resistance level of 10,900.
A close above 200-DMA at 10,869 and support at lower levels suggest that Nifty50 is all set to climb Mount 11K.
Our markets saw a roller-coaster move throughout last week. The breakout came on Friday when Nifty50 managed to close above 10,900 levels and surpassed the crucial resistance of 200-day SMA.
“We had anticipated a possible breakout from the sturdy wall of 10,850 last week. Finally, with Friday’s late surge in banking conglomerates, Nifty has confirmed a breakout above 10,850, which resembles a ‘Bullish Flag’ pattern on the daily chart,” Sameet Chavan, Chief Analyst-Technical & Derivatives, Angel Broking told Moneycontrol
“As far as levels are concerned, the up move should ideally get extended towards the 78.6 percent retracement zone at 11,100 – 11,200. From here on, one step at a time is the strategy to follow and better to book profits timely in the rally,” he said.
Chavan further added the base now remains at 10,660 – 10,560.
Here are 10 stocks suggested by multiple experts that can give 7-20% return in the next 3-4 weeks:
Expert: Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors Ltd.
In the last few weeks, this counter has been moving in a well-defined ascending channel with multiple touchpoints and appears to be having strong support around Rs 410-415 levels as it bounced back many times from the demand zone of the mentioned channel. Moreover, scrip is trading above all its significant moving averages on the daily chart implying strength. Hence, the stock sustained above this support then a decent target of Rs 480 is not ruled out in this counter over a given period of time. Therefore, investors should accumulate this scrip around Rs 435 with a suggested stop loss of Rs 406 for the upside target of Rs 480.
ICICI Bank Ltd: Buy| Buy around: Rs 352 |Target: Rs 390 | Stop Loss Rs 336 | Upside 10%
Bargain hunting is seen at lower levels in the scrip from where it formed a strong base near 200-SMA. Currently, it has formed a double bottom on the daily chart along with positive divergence in RSI which suggests a reversal is around the corner. Indicator and oscillators also lending support to the price action. Traders can take an entry from the level of Rs 352 for the target of Rs 390 while keeping stop loss of Rs 336 levels.
On the weekly chart, the stock has formed a double-bottom trend 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 with higher highs, leading to the formation of inverted head and shoulder pattern on the hourly chart. The 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 around Rs 1,810 with stop loss below Rs 1,727 for a target of Rs 1,919 levels.
Expert: Sameet Chavan, Chief Analyst-Technical & Derivatives, Angel Broking
Bharat Forge: Buy | LTP: Rs 377 | Target: Rs 405 | Stop Loss: Rs 362 | Upside 7%
Last month, after its previous quarterly numbers, the stock prices took a nosedive to test the lower end of the ‘Broadening’ or ‘Megaphone’ pattern on the daily chart.
As per the requirement, the fall got arrested around it to form a reversal pattern which resulted in a confirmation of the 5th point.
Since then, this counter has been continuing its upward momentum. If we look at the daily chart now, we can see the formation of a ‘Bullish Flag’ pattern and the same has been confirmed last Thursday.
Hence, last Friday’s muted session can be construed as a good buying opportunity in the stock. We recommend going long for a positional target of Rs 405 in the coming days. The stop loss can be placed at Rs 362.
SBI Card: Buy | LTP: Rs 755 | Target: Rs 825 | Stop Loss: Rs 712 | Upside 9%
This was one of the most popular and hyped IPOs in recent years and due to its unfortunate timing at the coronavirus outbreak, the listing was very disappointing for investors.
In fact, due to massive selloff thereafter, the stock prices plunged more than 30 percent in the following weeks.
However, after forming a strong base around Rs 500, the stock has given a stellar move over the past couple of months along with the broader market recovery.
Now, with last Friday’s smart move, the stock has managed to give the highest ever close above Rs 750 mark.
Although the historical price data is not sufficient, the chart structure and volume activity looks encouraging. Hence, one can look to buy for a target of Rs 825 in the coming weeks. The stop loss can be placed at Rs 712.
Expert: Umesh Mehta, Head of Research, Samco Group
Lupin: Buy | LTP: Rs 896 | Target: Rs 980 | Stop Loss: Rs 850 | Upside 9%
Lupin seems to have found cushion at Rs 850 levels and now seems to be getting ready for more upside. Lupin is a buy at levels of Rs 890-893 with a target price of 980 with stop loss 850.
Ajanta Pharma: Buy | LTP: Rs 1,461 | Target: Rs 1,600,| Stop Loss: Rs 1,370 | Upside 9.5%
Ajanta Pharma has also seen a price rejection on the downside near crucial moving averages on the weekly chart. The stock has strong definitive support at Rs 1,330.
The recent surge in price hints towards a fresh move in the stock. Ajanta Pharma is a BUY at Rs 1,440 levels with a target price of Rs 1,600 and a stop loss of Rs 1,370.
Piramal Enterprises: Sell | LTP: Rs 1,377 | Target: Rs 1,050 | Stop Loss: Rs 1,485 | Downside 23%
Piramal Enterprises is in a downtrend, however, recently the stock has rallied and become overbought finding resistance around previous support of Rs 1,420-1,460.
The resistance is getting confirmed by a rebound and a big bearish candle on weekly timeframe. Piramal Enterprises is a SELL at Rs 1,360-1,368 levels with a target price of Rs 1m050 and a stop loss of Rs 1,485.
Expert: Nilesh Ramesh Jain, Derivative and technical analyst- Equity Research at Anand Rathi
Berger Paints: Buy | LTP: Rs 523 | Target: 570 | Stop Loss: Rs 496 | Upside: 10%
The stock has provided a breakout from a symmetrical triangle formation on the weekly scale.
The momentum oscillator MACD has also provided fresh buy crossover on the daily as well as the weekly chart. The stock is also trading above its short-term and long-term moving averages.
Havells India: Buy | LTP: Rs 590 | Target: Rs 630 | Stop Loss: Rs 570 | Upside: 7%
The stock earlier provided breakout from a falling trend line and now it has re-tested the same.
It is also taking the support of short-term 21-DMA which is currently placed near Rs 580 levels. The momentum indicators and oscillators are very well in the buy mode.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their 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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