The bulls made a smart comeback on Dalal Street last week, lifting the BSE Sensex 1,662 points, or 5 per cent, for the week to 35,011 while the Nifty50 climbed 523 points, or 5 per cent, to 10,553.
Nifty is likely to deliver positive returns in the November series, as it has reversed from an oversold zone with a positive divergence, says Jay Thakkar, CMT – Head Technical and Derivatives Research – AVP Equity Research, Anand Rathi Shares and Stock Brokers. “On the upside, we have a target of 10,700 and 10,840, whereas we see support at 10,290,” he said.
Based on the recommendations of various brokerages, here are 10 stock strategies that can potentially deliver solid gains over the next 15-21 sessions:
Analyst: Milan Vaishnav, Technical Analyst, Gemstone Equity Research
Tata Steel | Buy | Target price: Rs 605 | Stop loss: Rs 552
The stock has shown resilience against the metal index and the broader market. The Relative Strength or RS Line indicates that it is now set to relatively outperform the market. Confirmation has come with the RS Line crossing the 50-DMA. The daily MACD stays in a continuing buy mode and is giving a bullish signal even as it trades above the signal line. The RSI has marked a fresh 14-period high, which is a bullish indication.
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia
Hindalco | Buy | Target price: Rs 259 | Stop loss: Rs 227
This counter appears to have registered a breakout above its trading zone at Rs 230-210 on higher volumes. Hence, sustaining above Rs 230, it can initially head to test an interim top at Rs 260. Positional traders are advised to buy this stock at current market price and add on declines around Rs 232 for a target of Rs 259 with a stop loss of Rs 227.
DCB Bank | Buy | Target price: Rs 170 | Stop loss: Rs 152
This counter appears to have registered a short-term bottom around Rs 140 with a double bottom formation from where it has rallied up to Rs 173. After retracing 62 per cent of the said rally, this counter appears to be again positioning itself to resume its upmove. In such a scenario, it can aim to test its recent peak at Rs 173. Positional traders can buy this stock for a target of Rs 170 with a stop loss below Rs 152 on a closing basis.
SAIL | Buy | Target price: Rs 77 | Stop loss: RS 66
This counter is rallying on the back of a double bottom formed around Rs 61and appears to have registered a breakout with a close above its interim top. Sustaining above Rs 67, it can initially target the Rs 77 level. Positional traders should buy this stock for the said targets with a stop loss below Rs 66 on a closing basis.
Analyst: Subhash Gangadharan, Technical Analyst, HDFC Securities
Maruti Suzuki | Buy | Target price: Rs 7700 | Stop loss: RS 6800
Maruti has bounced back sharply after touching a low of Rs 6,500. In the process, the stock has broken out of a narrow trading range on the back of huge volumes. The stock trades above the 13-day SMA. Daily momentum readings like the 14-day RSI too have shot up and are not yet in the overbought territory, which is a positive signal.
Excel Crop Care | Buy | Target price: Rs 4,650 | Stop loss: Rs 3,600
Excel Crop Care surged on Friday on the back of higher-than-average volumes. In the process, the stock closed at a new five-week high on a closing basis. The technical indicators are currently giving positive signals as the stock trades above the short term (13 day SMA) and medium term (50 day SMA) moving averages. Momentum indicators like the 14-day RSI, too, are in rising mode.
Analyst: Jay Thakkar, CMT – Head Technical and Derivatives Research – AVP Equity Research, Anand Rathi Shares and Stock Brokers
CG Power | Buy | Target price: Rs 43 | Stop loss: Rs 35.50
This stock seems to have completed a five-week declining structure. A bounceback, or a retracement of the entire fall, is expected. The momentum indicators are showing a positive divergence, which is a positive sign going forward for this stock.
Analyst: Rajesh Palviya, Head-Technical & Derivatives Analyst, Axis Securities
HDFC | Buy | Target price: Rs 1910-1930 | Stop loss: 1739
With the current weeks strong gains, the stock has decisively broken out of its "downsloping channel" at Rs 1,740 level on the weekly chart. This breakout is accompanied by an increase in volumes, which support the bullish sentiments. On the daily chart, the stock has broken its crucial resistance at Rs 1780 level, which indicates strength ahead. Weekly strength indicator RSI and momentum indicator Stochastic have both given a positive crossover, which supports bullish sentiments in the short to medium term. The stock has seen a positive crossover from its 50-day SMA, which supports bullish sentiments.
Sterlite Technologies | Buy | Target price: Rs 390-400 | Stop loss: Rs 354
On the weekly chart, the stock has decisively broken out of its consolidation range between Rs 370-270 levels on a closing basis and is sustaining above the same. This breakout is accompanied by a huge spurt in volume, which supports bullish sentiments. On the daily as well as weekly charts, the stock continues to move upward, forming higher top and higher bottom, which signals a sustained uptrend. Weekly strength indicator RSI and momentum indicator Stochastic are both in the positive terrain, which shows the upside momentum should continue in the near term. The stock is well placed above its 50, 100 and 200-day SMAs, which support bullish sentiments.
Raymond | Buy | Target price: Rs 790-805 | Stop loss: Rs 729
With current weeks strong gains, the stock has decisively broken out of its “downsloping trendline” at Rs 693 on the weekly chart. This breakout is accompanied by a spurt in volumes, which support bullish sentiments. On the weekly chart, the stock has formed a rounding bottom pattern at lower levels, indicating a positive bias. Weekly strength indicator RSI and momentum indicator Stochastic are both in the positive terrain, which supports upside momentum. The stock is well placed above its 20, 50-day SMAs, which support bullish sentiments going forward.
(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
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