PINC Research has come out with its technical stock picks. The research firm has recommended buy rating on Housing Development Finance Corporation (HDFC), HDFC BANK, Rural Electrification Corporation (REC), Power Finance Corporation (PFC), IDFC, IDBI, State Bank of India (SBI), Larsen and Toubro (L&T), Bharat Heavy Electricals (BHEL), ACC, Ambuja Cements, Jaiprakash Associates, Voltas, ITC, Dabur India, Indian Hotels, Lanco Infra, GMR Infra, Hindalco, Tata Steel, Tata Power, PTC India, Reliance Power, DLF, Unitech, HDIL, Reliance Communications (RCOM), in its January 17, 2012 research report.
NIFTY: While the markets were bulldozed by negative news flows throughout the last year and brought many a stock to its knees, the behavior of the indices has thrown up a different picture. The nature of the decline in the indices has been rather dull (compare the crash of 2008 and you will understand what we mean). This was intriguing and also interesting. A selection of stocks were beaten down brutally while another selection did not budge at all. The net effect was that the overall market was a picture of protest but not of panic. We see seeds of a better future sown in this very behaviour of the market. The reasons above indicate the possibility of trend reversal over the medium term. We believe the stage is set for the Nifty to advance towards 5400-5500. This target is likely to be achieved in the next 5-6 months.
CNX MIDCAP - FOLLOWING ON THE HEELS OF NIFTY: The reasons above clearly means that any further downsides for the Midcap Index are extremely bleak. Any surprises are most likely to be positive hereonwards. Considering that this index is close to a multi year support a strong response from the trend could be in the offing. The oversold technical oscillator should support such a rally. We expect the Midcap Index to rise towards 7500 or more in the next 5-6 months.
Housing Development Finance Corporation (HDFC) - BUY
The appearance of a flag pattern along with positive technical indicator means that the stock can see a continuation of its ongoing uptrend. The implication of a breakout above the trend channel indicates a possible price target of 950 followed by 1000 which can be achieved in the next 5 - 6 months.
HDFC BANK - BUY
The stock is trading within a trend channel. Given the positive structure of the trend, targets of 525 followed by 640 which is the measuring implication of the channel in the next 5-6 months.
Rural Electrification Corporation (REC) - BUY
A sustainable uptrend could be commencing in the stock which can propel towards 220-225. We expect this target to be achieved in the next 4-6 months.
Power Finance Corporation (PFC) - BUY
The momentum in the medium term is beginning to pick up. This development can lead the prices to rise steadily towards 190-195. This target can be achieved in the next 4-5 months.
IDFC - BUY
The stock has seen a steady decline in prices since November, 2010. This medium term downtrend has resulted in the momentum oscillators coming firmly into the oversold territory. Depressed prices over the last few months have resulted in the indicators also showing positive divergence. If the short term positive sentiment turns positive the stock can easily move towards its 142-145 in the next 3-5 months.
IDBI - BUY / HOLD
The stock has been southbound since November, 2010. This has resulted in the technical oscillators becoming deeply oversold. The current state of depressed prices coupled with oversold oscillator cannot sustain for long as can seen from the charts. Its recent move in the weekly charts indicates a bullish pattern. The stock can see a significant rebound and can reach 115-120 in the next 3-4 months.
State Bank of India (SBI) - BUY
The stock has been in a downtrend since the last one year. Accumulation pattern is visible on the short term charts suggesting that there could be minimal downsides from hereon. Also, its medium term technical oscillators are in the oversold territory implying that a sustainable trend reversal could be on the cards. The chances of a trend change is quite high at the current juncture and can lead the prices up to 2200-2225 in 3-5 months.
Larsen and Toubro (L&T) - BUY
The odds for a sustainable upmove in L&T is quite high and the oversold momentum indicator should ensure any such sustainable rally. One can expect this stock to rise towards the area of 200 Day EMA at around 1500 in the next 3-5 months.
Bharat Heavy Electricals (BHEL) - BUY
With a change in market trend, we expect BHEL most of its losses. The conditions are mature for the stock to have a sustainable bounceback. Any positive short term trend can catapult the stock towards 340-350 which can occur in a 4-5 months time frame.
ACC - BUY
With the change in the market trend, we expect ACC to continue along the present lines. The stock can see a continuation of its uptrend and can rise towards the upper end of the trend channel. A target of 1300 looks a good possibility in the next 4-5 months.
Ambuja Cements - BUY
The prices of Ambuja Cements has been steadily rising. Inspite of showing higher top and higher bottom formation for the last couple of quarters, its medium term momentum indicators is still healthy for further upmove. Any evidence of fatigue is not evident yet. The stock can continue with its rise and can see a price target 172-175 in the next 3-5 months.
Jaiprakash Associates - BUY
The stock has seen a recovery of sorts in the last few weeks. The short term and medium term now looks extremely healthy for higher prices. We foresee a price of 85-90 in the next 3-4 months.
Voltas - BUY
The stock has seen a severe decline in prices since November, 2010. It recently made a low at around 71 which essentially filled the gap that was created in May,2009. Its medium term technical oscillators is in the oversold territory signifying that further downsides could be minimal from current levels. The conditions are ripe for this stock to have an enduring upmove both in the short and medium term. With such prospects, one can look at a target of 105 followed by 115 in the next 4-5 months.
ITC - BUY
The stock has been in an uptrend for the last few years. Inspite of the decline in the benchmarks during the last year, the stock has seen higher prices. This clearly puts the stock in an outperformer category. The stock still hovers above an important medium term moving average. We expect the stock to advance towards 235-240 in the next 3-4 months.
Dabur India - BUY
The stock has been trading with bullish sentiment since making a low in October, 2008. The stock has seen a sideways to neutral move for the last few months. This has resulted in the momentum oscillator coming into the oversold territory. We expect this stock to sustain this high levels. A medium term rally towards 115-120 looks possible in the next 3-5 months.
Indian Hotels - BUY
The medium term oscillator is now exhibiting positive crossover and the short term outlook also appears optimistic. The minimum target for this ensuing uptrend could be 80-84 in the next 3-4 months.
Lanco Infra - BUY
The conditions of a double bottom pattern formation along with positive divergences in the medium charts indicates of a sustainable recovery. The short term charts have also now turned positive indicating higher prices for this counter. We envisage a price of 20-22 in the next 3-4 months.
GMR Infra - BUY
Condition s are ripe for a sustainable recovery that can see the stock test the level of 38-40 in the next 4-5 months.
Hindalco - BUY
The stock could see a turnaround of its downtrend which can result in the stock trading higher towards 170-172. This price can get reached in the next 3-5 months.
Tata Steel - BUY
One can look at higher prices for this stock over the medium term with a price target of 510-520 in the next 3-4 months.
Tata Power - BUY
The chances of a trend reversal is quite high at the current juncture and any such turnaround could have the support of technical oscillators. We maintain a bullish stance for this counter with a target price of 115-120 in the next 4-5 months.
PTC India - BUY
Since the stock has been brutally hammered in the last one year any sustainable bounceback could result in high percentage returns. One can envisage a price target of 62-65 in the next 4-5 months.
Reliance Power - BUY
Any positive change in the short term can trigger higher prices for this stock. A target closer to 125 looks possible in the next 4-5 months.
DLF - BUY
The prospects of the stock to move higher towards the level of 260-265 is very high. We foresee this price to be achieved in the next 5-6 months.
Unitech - BUY
Any upthrust in this counter over the short term can result in a breakout above the upper area of the trendchannel. Unitech can then be headed for 38-40 in the next 4-5 months.
HDIL - BUY
The short term outlook has become positive after its breakout above 60 level. The odds for a sustainable upmove is quite high and the stock can move towards it 200 Day EMA of around 110. The time frame for this target could be 4-6 months.
Reliance Communications (RCOM) - BUY
A breakout above the trend line has resulted in a structural change forthe trend of the stock. A price of about 120-122 in the next 3-5 months.
FIIs holding more than 30% in Indian cos
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