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The market ended the historic week on a high. The Nifty rose nearly a percent for the week-ended August 24, despite muted global cues.
Buying interest was seen on every dip. This week, analysts see some more consolidation before the market resumes its journey again on the upside. Volatility will remain high ahead of August F&O expiry on Thursday.
The momentum is still on the upside but investors are advised to tread with caution. Crucial support for the index is placed at 11,500, while resistance is around 11,600-11,640 levels.
“We still believe it’s not a trend reversal yet and hence would continue with our bullish stance on the market. The pace may not be the same as it has been recently, but we expect buying to emerge at lower levels,” Sameet Chavan, Chief Analyst, Technicals and Derivatives at Angel Broking, said. He sees strong support of the Nifty at 11,500 followed by 11,458. “On the higher side, 11,600–11,620 are the levels to watch out for.”
Last week, a lot of index balancing was seen and this is generally what happens after the market clocks a strong rally in a short span. Sectorally, experts are of the view that pharma still seems to be the preferred choice. Although it has run-up quite a lot in the recent past, they still believe it has a long way to go.
Here is a list of 12 expert stock picks that could return 5-12% in 1 month:
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Zee Entertainment: Buy| LTP: Rs 509.10| Target: Rs 540| Stop Loss: Rs 490| Return 6%
On multiple occasions, this counter bounced back from the lows of Rs 490 or so. Hence, there seems to be a trading opportunity in this counter as it smartly recoiled from the intraday lows of Rs 500 which was in line with its past behaviour.
Hence, positional traders are advised to buy into this counter with a stop below Rs 490 on a closing basis for a target of Rs 540.
Bajaj Electricals: Buy| LTP: Rs 564| Target: Rs 603| Stop Loss: Rs 535| Return 7%
After retracing around 80 percent of its strong rally from the recent lows of 520 – 627 this counter appears to have posted a bottom around 538 levels and resumed its upmove.
Hence, sustaining above this level it can head to test its gap present in the zone of Rs 581 – 603. Hence, positional traders should buy into this counter for a target of Rs 603 and a stop below Rs 535 on a closing basis.
Eicher Motors: Buy| LTP: Rs 28,796| Target: Rs 30,080| Stop Loss: Rs 28,350| Return 4%
At hitting a recent low of 28,076 this counter appears to have retraced 50 percent of its last leg of the rally from the lows of 26,601 – 29,470 levels.
Last three days of price action is suggesting that it is now positioning itself for a fresh leg of an upswing. In that scenario, it can ideally head towards 30,080 levels.
Hence, positional traders are advised to buy into this counter for a target of Rs 30,080 with a stop below Rs 28,350 on a closing basis.
Analyst: Rajesh Palviya, Head - Technical & Derivatives Analyst, Axis Securities
Glenmark Pharma: Buy| LTP: Rs 661.50| Target: Rs 685-700| Stop Loss: Rs 625| Return 6-8%
On the weekly chart, the stock has formed an “Inverse Head & Shoulder" pattern - a short-term reversal pattern which signals a shift of short-term trend reversal to the upside.
This breakout is accompanied with a huge spurt in volumes which supports bullish sentiments ahead. The daily and weekly strength indicator RSI and the momentum indicator Stochastic both are in positive terrain which supports upside momentum to continue in the near-term.
The stock is well placed above its 20, 50 and 100-day SMA which supports bullish sentiments ahead. Investors can look at buying the stock in the range of Rs 650-638.
Cummins India: Buy| LTP: Rs 762.25| Target: Rs 790-805| Stop Loss: Rs 730| Return 6-8%
With current week's strong gains the stock has decisively broken out from its “Down Sloping channel” at Rs 705 levels on closing basis. This breakout is accompanied with a huge spurt in volumes which supports bullish sentiments ahead.
The weekly strength indicator RSI is moving upwards which supports bullish sentiments in near term. The stock is well placed above its 20, 50 and 100 day SMA which supports bullish sentiments ahead. The buying range is Rs 750-736.
RBL Bank: Buy| LTP: Rs 611.20| Target: Rs 640-650| Stop Loss: Rs 588| Return 6-8%
On the weekly chart, the stock has decisively broken out its 10 weeks consolidation range of 530-590 levels on a closing basis and sustaining above the same. This breakout is accompanied with rising volumes which supports bullish sentiments ahead.
The daily and weekly strength indicator RSI and the momentum indicator Stochastic both are in positive terrain which supports upside momentum to continue in near term.
The stock is well placed above its 20, 50 and 100 day SMA which supports bullish sentiments ahead. The buying range is Rs 608-596.
Hindustan Zinc: Buy| LTP: Rs 292.95| Target: Rs 305-310| Stop Loss: Rs 282| Return 5-7%
On the daily charts, the stock price has decisively broken out from its daily consolidation range of Rs 270-290 levels on a closing basis and is now sustaining above the same.
This breakout is accompanied with rising volumes which supports bullish sentiments ahead. The daily and weekly strength indicator RSI and the momentum indicator Stochastic both are in positive terrain which supports upside momentum to continue in near term.
The stock is well placed above its 20, 50 and 100 day SMA which supports bullish sentiments ahead. The buying range is Rs 290-286.
Analyst: Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas
Ujjivan Financial Services: Buy| LTP: Rs 357| Stop Loss: Rs 341| Target: Rs 390| Return 9%
The stock is witnessing a lower Bollinger reversal on the weekly chart. In its recent rise, it has formed an Impulse structure on the hourly chart. The daily momentum indicator has given a fresh buy signal
Vedanta: Buy| LTP: 223| Stop Loss: Rs 215| Target: Rs 245| Return 10%
The stock has formed a strong Engulfing bull candle near a crucial support zone. The daily momentum indicator is starting a new cycle on the upside from the equilibrium line whereas the weekly momentum indicator is already in the bullish mode
Eicher Motors: Buy| LTP: Rs 28796| Stop Loss: Rs 28,070| Target: Rs 31,700| Return 10%
The stock has formed a base for itself near the crucial daily moving averages & is preparing for an Impulse move on the upside. Momentum indicators on various time frames are in bullish mode
Analyst: Sameet Chavan, Chief Analyst, Technicals, and Derivatives at Angel Broking
Nilkamal Ltd: Buy| LTP: Rs. 1,873.15| Target: Rs 2105| Stop Loss: Rs 1772| Return 12%
Since last fourteen months, this stock has been vacillating within the boundaries of a triangular pattern. Recently, the stock prices gave a smart surge from the lower boundary and in the course of action, have managed to configure a positive structure.
The encouraging part of this move is the volume participation, which has picked up substantially.
During the week, the stock managed to breakout from this multi-month ‘Triangle’; but due to the last two days’ profit booking, we cannot call it a breakout on the weekly time frame.
Overall we still remain upbeat and expect the stock to confirm this pattern soon. We recommend buying this stock with an anticipation of the development. The potential upside target can be foreseen at Rs.2105 and stop loss at Rs.1772.
JSW Steel Ltd: Buy| LTP: Rs. 354.80| Target: Rs 373| Stop Loss: Rs 343| Return 5.3%
This stock continues to enjoy its multi-year Bull Run started towards the fag end of 2015. Since then there has been no stopping for this counter as we can see a series of higher tops and higher bottoms in all time frame charts.
On Friday, the stock price confirmed a yet another breakout with sizable volumes; indicating solidity of this rally. With the ‘Metal’ sector showing some encouraging signs; we expect the outperformance to continue as compared to its peers.
One can go long for a positional target of Rs.373 in coming days. The stop loss now can be placed at Rs.343.
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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