The Indian markets surged to record highs in opening trade on Thursday, supported by positive political developments which increase the probability of BJP-led NDA Government to come to power in the next general elections in the year 2019.
The Nifty rose to a fresh record high of 10,114.85 while the S&P BSE Sensex rose over 200 points to hit a high of 32,672.66. The Nifty bank rose over 300 points to hit 25000 mark for the first time in history.
Bulls continue their dominance on D-Street and it becomes important for investors to park their money in names which can give steady returns in short to medium term.
The Nifty extended its record setting spree to close above the 10,000 mark for the first time ever led by a broad based rally on Wednesday. If the momentum continues, the next logical target for the index stands at 10,400, suggest experts.
After a strong rally of over 6 percent in the last four weeks, the weekly RSI, as well as stochastic, are poised in overbought territory that could lead to a round of temporary consolidation over the coming sessions.
“From a larger degree perspective, we expect the index to extend the ongoing up move and head towards target of 10400 regions over the coming months as it is the upper band of the major rising channel encompassing the entire up move since March 2016 till date,” Dharmesh Shah – Head Technical Designation - AVP, ICICI Direct.com Research told Moneycontrol.
“The confluence of 161.8 percent reciprocal retracement of the 2015-16 correction (9119 to 6825) placed around 10400 region makes this the likely target for the current up move over the coming months,” he said.
Here is a list of top 8 stocks which investors can buy from a period ranging from 5 sessions to 6 months:
Analyst: Dharmesh Shah – Head Technical Designation - AVP, ICICI Direct.com Research
Hindustan Zinc: BUY| CMP – 285| Target Rs327| Stop Loss Rs262| Upside 15%| Time Frame 1 month
The share price of Hindustan Zinc has registered a falling channel breakout on the weekly chart signaling a reversal of the corrective trend and offers a fresh entry opportunity to ride the next up move in the stock.
The stock has witnessed a strong rebound from the June 2017 low of Rs230 being the confluence of rising trend line joining major August’15 and January 2016 lows placed around Rs230, 50% retracement of the 2015-2017 up move (Rs117 to Rs333) placed at | 225 and previous breakout area is also around 220-230 zone.
We expect the stock to continue with its current uptrend and head towards Rs330 over the coming months being the price parity with the previous up move from Rs230 to Rs285 (Rs285-230=55 points) added to the recent trough of Rs275 (275+55=330) project upside towards Rs330 levels.
Emami: BUY| CMP Rs1111| Target Rs1250| Stop Loss Rs1040| Upside 13%| Time Frame 1 month
The stock is witnessing consolidation at the crucial support level, which can be labeled as a healthy secondary correction within a primary up trend this signals an overall positive trend for the stock.
The identical lows formed around Rs1,000 in April and June 2017, are anchored at 80 percent retracement of preceding up leg (Rs939-1199), which coincides with the 100 days EMA placed at 1030 levels
The key observations on price and time wise behavior during recent corrective decline substantiate the underlying positive bias in the stock as it has already taken 25 weeks to retrace just 80% of the preceding five-week rally from Rs939 to Rs1199.
Going forward, we expect the stock to resume its rising trajectory from here on and rally towards its November 2016 highs of Rs1260 which also coincides with the price parity of previous up move from Rs939 to Rs1199 (1199-939-260 points) added to the recent trough of Rs1000 (1000+260=1260) projects upside towards Rs1260 in the medium term
Jammu & Kashmir Bank: BUY| CMP Rs87| Target Rs110| Stop Loss Rs75| Upside 26%| Time Frame – 6 months
The entire sideways consolidation over the last one year between the broad range of Rs90 to 56 levels has taken the pictorial form of a Double Bottom pattern which is a bullish reversal pattern.
The stock is on the cusp of a breakout above the neckline of the double bottom reversal pattern placed around 90 regions signalling a major structural turnaround implying the end of the major corrective phase and beginning of a fresh uptrend.
The bullish double bottom at 80 percent retracement of 2009-14 rally underscores value buying despite host of concerns about the sector and expectations of NPA resolution
We expect the stock to resolve higher from here on and head towards Rs110 levels over the medium term as it is the of 38.2 percent retracement of the entire 2014-2016 decline (Rs195 to Rs57) and the monthly swing highs of July-August 2016.
Mahindra CIE Automotive: BUY| CMP Rs252| Target Rs290| Stop Loss Rs229| Upside 15%| Time Frame – 6 months
The stock had registered a strong volume led a breakout from 12-month consolidation above Rs222 in April 2017. After the strong breakout rally from Rs180 to Rs257 in just four months, the stock entered a sideways consolidation mode and is seen oscillating between the broad range of Rs257 and Rs225 over the last three months.
This entire consolidation occurring above the breakout level of Rs222 highlights the change of polarity principle as per which a significant resistance once taken out, reverses its role and acts as a support for future price movement.
We believe the current consolidation above the previous breakout area has laid the platform for the next up move
We expect the stock to resolve higher from here on and head towards Rs293 over the medium term being the price parity with the previous up move from Rs189 to Rs 257 (257-189=68 points) added to the recent trough of Rs225 projects upside towards 293 (225+68=293) in the medium term.
Analyst: Rohit Singre, Bonanza Portfolio Ltd.
Ramco System: BUY | Target Rs 510 | Stop Loss Rs 400 | Upside 15%
The stock cached the momentum recently and we have seen a quick up move in the stock from Rs350 to Rs440 levels. Technically, the stock has given a double bottom breakout on short to long term charts with decent volume.
On the daily charts, the stock has already surpassed above all the strong DMA’s like 200-100 etc., suggesting current momentum in the stock will take it further towards Rs480 levels on an immediate basis.
On the weekly charts, we have witnessed very good volume activity suggesting a bottom is formed and the stock is all set to fly high.
Bonanza recommends a buy on stock at current levels to any dip near Rs425 for the targets of Rs480 and then further towards Rs510 with keeping a stop loss below Rs400 on a closing basis.
Equitas Holding: BUY Above 172 | Target Rs 190 | Stop Loss Rs 161| Upside 10%
The stock has not performed in the past but the current stock structure looks very attractive. Recently, the stock has given decisive double bottom breakout above 163 levels with huge volume.
If we look at current chart setup it seems after giving strong breakout, the stock is forming bullish flag which will get active above 172 levels.
We expect a breakout to happen in the coming sessions as the stock is already active in price moment and the next hurdle for the stock is around Rs190 which acted as strong resistance historically.
One needs to wait till the time price break above Rs172 level, then we may expect Rs190 as an immediate target and keep a stop loss below Rs161 on a closing basis.
V-Guard: BUY| Target Rs 205| Stop Loss Rs 177 | Upside 9%
The stock rose one way from Rs120 to Rs220 and from there it has given time wise correction and took pause at 38.20% retracement support from December low.
Currently, stock trading in sideways trend and on Wednesday session stock has given small price breakout with good volume hinting stock likely to go higher from current levels.
The momentum indicator RSI currently reading at 59.50 which is again bullish zone & Stock also managing itself above all strong DMA’s like 200-100 suggesting strength.
Bonanza recommends a buy on the counter for the target of Rs205 with keeping stop out level below Rs177 on a closing basis.
Century Plyboards: BUY | Target Rs 360| Stop Loss Rs 280| Upside 10%
The stock has given strong consolidation breakout on weekly chart in early June and reacted technically, again stock is ready to break its bullish flag pattern as we have witnessed some good buying activity in counter.
The stock is trading in a strong uptrend and we have seen that stock rose after giving consolidation breakout every time.
Century has given one more small consolidation breakout on Wednesday session with strong volume hinting stock ready to follow its overall trend again. The immediate resistance in counter stands at 314 above same we may see a quick move up to 330 levels.
One can initiate a buy on the counter for the targets of Rs330 in the near term with keeping a stop loss below Rs280 on a closing basis.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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