NEW DELHI: Domestic stocks declined sharply in early trade on Monday, with benchmark Sensex slipping 150 points and Nifty testing 11,770 within the first 10 minutes of trade amid a spike in crude oil prices and rising trade friction.
Lacklustre global cues ahead of Fed meet and rupee's weakness also hurt investors risk appetite.
Analysts attributed the correction to valuation concerns. They say the forthcoming Budget would offer directional cues to the market.
Around 9:30 am, the BSE Sensex was down 136 points, or 0.35 per cent, at 39,316, while Nifty50 fell 47 points, or 0.40 per cent to 11,776.
While the market remains in choppy waters, technical experts advised investors to adopt a stock-specific approach.
Based on the recommendations by various analysts and brokerages, here is a list of 10 stocks that they say can potentially deliver gains over next 2-3 weeks.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Lupin | Buy | Target price: Rs 770 | Stop loss: Rs 697
Long lower shadows around the Rs 700 level is hinting at possible accumulation on this counter as it recoiled on Friday from the lows of Rs 710 by escaping the correction in the broader market. Sustaining above the psychologically important support at Rs 700, this counter can smartly stage a decent pullback rally with targets placed around Rs 773, which is the 38.2 per cent retracement of its last leg of fall from the highs of Rs 884–705. “As the risk-reward ratio looks attractive, positional traders can go long for a target of Rs 770 with a stop loss below Rs 697 on a closing basis,” said Mohammad.
Reliance Industries (RIL) | Buy | Target price: Rs 1,360 | Stop loss: Rs 1,300
This counter appears to be attracting buying interest around Rs 1,305 level, as it has bounced on multiple occasions after testing the said level in recent past. There seems to be a trading opportunity on the long side until the said support level is broken. “Positional traders can buy into this counter for a target of Rs 1,360, keeping a stop loss at Rs 1,300," Mohammad said.
Rajesh Bhosale, Technical Analyst, Angel Broking
Glenmark Pharmaceuticals | Buy | Target price: Rs 570 | Stop loss: Rs 507
After a strong underperformance over the past few months, this stock is forming a bullish reversal harmonic AB=CD pattern. The said formation emerged as the daily momentum oscillator RSI gave a fresh buy signal with its smoothened moving average in the deeply oversold territory. Moreover, the MACD histogram has entered the positive territory. In addition, the stock is witnessing a classical Doji pattern on the weekly chart, matching the lows with the previous session, which suggests the bearish momentum has fizzled out and a strong upside is possible in the near term.
PI Industries | Buy | Target price: Rs 1,280 | Stop loss: Rs 1,110
This stock is in a strong uptrend, continuously forming higher tops and bottoms. On the daily chart, after consolidating for a month and twice witnessing resistance around Rs 1,150 level, the stock has broken above the hurdle, confirming the breakout of a bullish pattern. The said breakout accompanied an increase in volume and strong bullish candlestick pattern. Moreover, major moving averages i.e. 20, 50 & 200-day SMAs and the RSI are placed in the positive territory, which supports the buy call.
Aditya Agarwala, Senior Manager- Technical Analysis, YES Securities
Teamlease Services | Buy | Target price: Rs 3,300-3,420 | Stop loss: Rs 2,950
On the daily chart, the stock is on the verge of a breakout from an ascending triangle pattern neckline placed at Rs 3,200. A successful breakout from the pattern can take it higher to Rs 3,200-3,420 levels. On the weekly chart, the stock is making higher highs and lows, confirming the bullish trend. The RSI has turned upward after taking support at the 50-level on the weekly chart, which suggests bullishness on the counter. “The stock can be bought in the Rs 3,080-3,120 range for targets of Rs 3,300-3,420, keeping a stop loss below Rs 2,950,” Agarwala said.
Larsen & Toubro (L&T) | Buy | Target price: Rs 1,630-1,675 | Stop loss: Rs 1,460
On the daily chart, this stock is on the verge of a breakout from a bullish flag pattern, suggesting bullishness. On the weekly chart, it has formed a bullish Harami candlestick pattern, which signals higher levels in the coming sessions. Moreover, the RSI has formed a positive reversal at the 45-level and turned north, indicating bullishness on the counter. “This stock can be bought in the Rs 1,520-1,530 range for targets of Rs 1,630-1,675, keeping a stop loss below Rs 1,460," Agarwala said.
Stock recommendations for the coming week
16 Jun, 2019
Dalal Street continued to trade on a sluggish note last week as higher valuations weighed on the market amid lack of triggers. Analysts say investors will struggle to figure out a strategy to play. Milan Vaishnav picked the following stocks based on their technical charts, which can potentially help investors make the most of this lacklustre market.
Vaishali Parekh, senior technical analyst at Prabhudas Lilladher
NCC | BuyRead More – Source