Tata Motors, SBI, HDFC among 10 stock ideas that analysts say should deliver good returns in weeks
No matter where the market heads for, stock-specific ideas should still make money.
While the 30-share Sensex managed to eke out 0.08 per cent gain for the week, the 50-share Nifty fell 0.11 per cent for the week.
With quarterly earnings out of the way, the focus now shifts to US-Sino trade deal and any step the government takes to limit losses for the bleeding telecom sector.
Meanwhile, analysts say no matter where the market heads for, stock-specific ideas should still make money. Based on various brokerage recommendations, here are 12 stock ideas that they said should deliver positive returns over the next few weeks:
Vikas Jain, Senior Research Analyst, Reliance Securities
Ambuja Cements| Buy| Target price Rs 224| Stop loss Rs 190
This stock has made higher bottom on daily charts with positive divergence from lower levels and the positive momentum in the sector will aid stock to outperform. As per the current weekly set-up, the analyst believes the stock is on a verge of turnaround and will soon recover prior damages to test the medium term weekly averages.
Cadila Healthcare| Buy| Target price Rs 265| Stop loss Rs 218
This stock has multiple supports in the Rs 215-220 range and has witnessed a positive bounceback from the lower range this week. Key technical indicators are poised positively above the neutral line, signaling strength on this counter. A higher bottom on the weekly charts and a crossover of the 20-week average will signal a breakout from current levels.
Mazhar Mohammad, chief strategist – technical research & trading advisory, www.chartviewindia.in
Tata Motors | Buy| Target price Rs 187| Stop loss Rs 165.
This counter appears to be consolidating in the Rs 179-165 band for last 12 sessions with a bullish bias after witnessing a steep up-move in last couple of weeks from the lows of Rs 112. Once this consolidation phase gets over, this counter shall register a fresh breakout above Rs 179 level, the analyst said.
AU Small Finance Bank |Buy| Target price Rs 897| Stop loss Rs 740
This counter witnessed a massive breakout above its multi month consolidation zone of Rs 740 – 540 levels and swiftly rallied from the lows of Rs 648 – 848 in just five sessions. “After this kind of up-move some profit booking and sideways move can’t be ruled out. Hence, correction in this counter shall be considered as an opportunity to create fresh long positions,” the analyst said. He advised positional traders to adopt a two pronged strategy of buying now and adding further on dips in the zone of Rs 776 – 750 levels.
SBI | Buy| Target price 347 | Stop loss Rs 297
This counter appears to have resumed its uptrend after a brief consolidation around Rs 300 level in last 10 sessions. The analyst believes that if this counter manages a sustainable close above Rs 323 level and then swiftly head towards Rs 347. Considering the sharp up-move last session, traders will be better off by adopting a strategy of buying now and adding further on declines preferably in the Rs 307 – 300 zone, he recommends.
Ajit Mishra, VP Research, Religare Broking
Tata Chemicals | Buy| Target price Rs 670| Stop loss Rs 624
Tata Chemicals has been gradually inching higher for the last two months, after forming a strong base at the 200-EMA on the weekly chart. It has witnessed a marginal dip of late and tested the support zone around Rs 620 level, which has result in formation of a fresh buying pivot.
HDFC |Buy| Target price Rs 2,280 | Stop loss Rs 2,180
After a rally from Rs 1,950 to Rs 2,264, HDFC has retraced marginally of late and tested the immediate support zone around Rs 2,200 level. Considering its overall trend and buoyancy in the banking & financials space, the analyst advises using this dip to create fresh longs in the given range.
Power Finance Corporation | Buy | Target price Rs 118 |Stop loss Rs 107
Power Finance has been consolidating in a narrow range between Rs 108 and Rs 114 for last two weeks or so while holding strongly above the support zone of moving averages ribbon i.e. (50/100/200 EMA) on the daily chart. Indications are now in the favor of fresh up move in the near future, according to the analyst.
Shrikant Chouhan, SVP Technical Research, Kotak Securities
Balkrishna Industries| Buy| Target price Rs 900 | Stop loss Rs 840
This stock has completed its longer-term retracement, of the strong move it gave from Rs 265 to Rs 1,453 levels, and has since reversed sharply from key retracement zone which clearly hints at a fresh impulse move. On the weekly chart, the stock is forming a rounding bottom formation which is bullish in nature. Looking at the overall pattern, the analyst believes stock can hit the Rs 900 mark in a couple of weeks.
Berger Paints| Buy| Target price Rs 525| Stop loss Rs 470
Recent quarter rally and seasonal demand for paint sector have elevated the stock to the high of Rs 530 from the lows of Rs 300-350 levels. The stock has outperformed its peers and currently retraced to its key retracement level of 50 per cent. Hence, the analyst says he expects a strong reversal from the support zone and bullish continuation formation to emerge and sustain in medium term.
Gajendra Prabu, Technical Research Analyst, HDFC securities
Muthoot Finance| Buy |Target price : Rs 780 | Stop loss Rs 650
The stock is in the process of making a new life high. Strong bull candle with significant lower shadow has been witnessed, which is a positive sign. In addition stock has posted good earnings report of the second quarter of FY 19-20. The analyst pointed that momentum indicators like DMI & KST are placed with a positive sign, which could keep the momentum intact. Price has been forming higher highs and higher lows on both weekly and daily charts, which is a bullish continuation structure, he added. Apart from this, price is trading well above all its key moving averages.
Bank of Baroda| Buy | Target price Rs 108| Stop loss Rs 87.80
The analyst pointed that this stock is in the process of forming an inverted Head & Shoulder pattern which is a strong bottom reversal formation. Now stock is in process of forming right shoulder and price is at bottom of the right shoulder so risk reward is very attractive. “It’s an early call but structurally looks very good buy,” he said. Price has validated the long legged Doji candle on daily charts, which confirms the completion of downward retracement. Technical indicators are likely to turn positive in coming days, he added.
(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.)