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    8 stocks that analysts say can deliver solid returns in the next few weeks

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    Money-making ideas
    1/10

    Money-making ideas

    Amid a meltdown in global markets, uncertainty in the domestic equity market has also increased. A spiraling pandemic and a failure to reach a deal on a fresh round of US fiscal stimulus before next week's US presidential election is adding to worries. In this uncertain market, here is a collection of 8 hand-picked stocks that can offer solid returns in the next few weeks.

    iStock
    Colgate Palmolive | BUY | Target Price: Rs 1,670
    2/10

    Colgate Palmolive | BUY | Target Price: Rs 1,670

    After a large sideways range movement over the last few months, the stock has witnessed an excellent upside breakout this week in the weekly timeframe chart. Tuesday’s sharp upside bounce witnessed a breakout of the Rs 1,500 resistance level. Volumes have also started to expand, and the weekly 14-day RSI has moved above the key upper level of 60. This is a positive indication and signals more upside in the near term. The analyst recommends traders to buy Colgate Palmolive for a target of Rs 1,670 in the next 3-5 weeks. He suggests a stop loss at Rs 1,455.

    (Analyst: Nagaraj Shetti, Technical Research Analyst, HDFC Securities)

    Reuters
    Bajaj Finance | BUY | Target Price: Rs 3,750
    3/10

    Bajaj Finance | BUY | Target Price: Rs 3,750

    A sideways range movement in the last three weeks seems to be over in this consumer finance stock now. The recent upside bounce could be considered as a breakout of the sideways range at Rs 3,350. The stock has witnessed an upside breakout in the smaller and larger timeframe charts. The rise in volumes, along with the up move in the stock price, could signal a participation of longs. Positive setup of daily RSI suggests further strengthening of the momentum. The analyst has, therefore, set a target of Rs 3,750 for Bajaj Finance in the next 3-5 weeks, with a stop loss at Rs 3,230.

    (Analyst: Nagaraj Shetti, Technical Research Analyst, HDFC Securities)

    Getty Images
    HDFC Life | BUY | Target Price: Rs 630
    4/10

    HDFC Life | BUY | Target Price: Rs 630

    This stock has had a spectacular run from its March lows of Rs 340 to a recent high around Rs 650. However, after such a move the indicators were in a highly overbought zone, resulting in a price correction during the last few months. This gradual correction, however, got arrested around the key support of 200-SMA and now we are witnessing prices breaking out above a descending trend line resistance. The recent price action resembles a ‘Descending Triangle’ bullish breakout and the up move is supported with huge volumes. Momentum oscillator i.e. RSI has smoothened after forming a base around 30. In addition, prices are well above key averages, indicating overall bullishness. The analyst recommends a buy on this counter at current levels for a target of Rs 630 over the next 14 sessions. Stop loss should be placed below Rs 562.

    (Analyst: Sameet Chavan, Chief Analyst, Technical and Derivatives, Angel Broking)

    Agencies
    L&T Finance Holdings | BUY | Target Price: Rs 72
    5/10

    L&T Finance Holdings | BUY | Target Price: Rs 72

    For the last two months, the stock was facing stiff resistance around Rs 66. By breaking above that level, we are now witnessing a bullish reversal pattern known as ‘Inv. Head N Shoulder’. In addition, prices have closed above 89-EMA. The 'Supertrend' indicator is also supporting the buy call. Volumes are above average. Momentum indicator i.e. RSI has smoothened; it is well placed in a positive zone and suggests further potential of up move in the near term. Hence, the analyst recommends a buy on the counter at current levels for a target of Rs 72 in the next 14 sessions. He suggests placing a stop loss at Rs 64.

    (Analyst: Sameet Chavan, Chief Analyst, Technical and Derivatives, Angel Broking)

    Shutterstock.com
    HDFC Life | BUY | Target Price: Rs 700
    6/10

    HDFC Life | BUY | Target Price: Rs 700

    HDFC Life is a top quality stock whose performance has been muted in the last couple of months. The stock has a major resistance at Rs 645-650, and this zone has been tested thrice in the past. The rule is that a price resistance level can hold for three times, and fourth time the price should move past that zone. In the last couple of weeks, the stock has been trading within a range of Rs 588-557. There is a possibility that the decline from the July high of Rs 648 is coming to an end. HDFC Life seems to be getting ready for a revival towards Rs 648, and if the price manages to break above that level, there could be more upsides towards Rs 700 or even higher. The analyst recommends traders to accumulate the stock between Rs 585-578, while placing a stop loss at Rs 550.

    (Analyst: Manish Shah, Trader, Researcher, www.Niftytriggers.com)

    Getty Images
    Nestle | BUY | Target Price: Rs 20,100
    7/10

    Nestle | BUY | Target Price: Rs 20,100

    Nestle saw a deep corrective decline from the high of Rs 18,370 in April to the September 20 low of Rs 15,100. Prior to this decline, the stock had witnessed a sharp rally from the March 2020 low of Rs 12,200 to the April 20 high of Rs 18,370. Price action suggests that there could be a major move on the upside. A price gap-up, coupled with a reversal signatures of pattern breakout, as well as the trendline breakout, suggests a major change in sentiment for the stock. The analyst expects Nestle to see a steady rally to Rs 19,200 followed by Rs 20,100 over the next 8-12 weeks. He recommends a stop loss at Rs 15,800.

    (Analyst: Manish Shah, Trader, Researcher, www.Niftytriggers.com)

    Reuters
    UltraTech Cement | BUY | Target Price: Rs 4,170
    8/10

    UltraTech Cement | BUY | Target Price: Rs 4,170

    The stock has been trading within a well-defined rising channel after bottoming out in March this year, signalling sustaining demand at elevated levels. The stock is currently forming a higher base at the lower band of the rising channel and the low of July, thus offering fresh entry opportunity with a favourable risk-reward set up. The analyst expects the stock to move towards Rs 4,170 in the coming weeks and suggests traders to place a stop loss at Rs 3,820 on a closing basis.

    (Analyst: Dharmesh Shah, Head – Technical, ICICI Direct)

    Getty Images
    Hero MotoCorp | BUY | Target Price: Rs 3,240
    9/10

    Hero MotoCorp | BUY | Target Price: Rs 3,240

    The stock has maintained a strong uptrend. It has already taken five weeks to retrace just 61.8 per cent of the previous four weeks' move. A shallow retracement signals higher base formation and a robust price structure. The stock has formed a higher base at the 50 day-EMA, acting as a strong support zone since May. The analyst believes the stock has resumed a fresh up move and expects it to head towards Rs 3,240 in the coming weeks. A stop loss should be maintained at Rs 2,990.

    (Analyst: Dharmesh Shah, Head – Technical, ICICI Direct)

    Getty Images
    Ajanta Pharma | BUY | Target Price: Rs 1,695
    10/10

    Ajanta Pharma | BUY | Target Price: Rs 1,695

    Pharma stocks have outperformed in the last six months since the market bottomed out in March. The share price of Ajanta Pharma remains in a steady up trend and is currently seen forming a higher base at the 100 day-EMA. The rising demand line is joining lows since December 2019. Hence, the analyst believes that the stock offers a favourable risk-reward set up for a fresh up move towards Rs 1,695 in the coming weeks. He recommends a stop loss at Rs 1,525.

    (Analyst: Dharmesh Shah, Head – Technical, ICICI Direct)

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