YES Bank, Biocon, HDFC AMC, Voltas among 12 buy ideas that analysts say can give solid returns
A decisive/sustainable move below 11,825 level may open it up a sharp weakness next week.
On Monday, domestic equities traded weak, with the Sensex shedding some 24 points and Nifty 11 points. The selloff that began on Friday may continue and the market may see some consolidation, analysts say.
“Nifty’s near-term trend is on the verge of reversal. A decisive/sustainable move below 11,825 level may open it up a sharp weakness next week. This pattern could drag Nifty further down towards the 11,700 mark in the next few weeks,” said Nagaraj Shetti, Technical Research Analyst, HDFC securities
“The long trading positions need to be protected with strict stop loss and further weakness could create opportunity in short positions,” Shetti said.
We have listed hereunder some of the top stock recommendations that different brokerages and analysts put out for the week ahead.
Mustafa Nadeem, CEO, Epic Research
Yes Bank | Buy | Target price Rs 82 | Stop loss Rs 59
This stock is in a consolidation zone after showing strength and run up from lower levels. The price has closed above the 50-day MA and is seeing much higher volume participation, giving confirmation to upside bias. RSI is also showing bullish bias as it is above 60, showing strength in prices.
Biocon |Buy| Target price Rs 295| Stop loss Rs 252
A breakout was seen in the price chart after the breakout of an Inverted Head and Shoulder pattern coupled with the fact that the closing level is above its neckline. The analyst expects the stock to maintain its positive momentum as the RSI is also above 60 showing strength in price action.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Kotak Mahindra Bank | Buy | Target price Rs 1,730 | Stop loss Rs. 1,505
The recent correction in this banking stock seems to be over. The stock has witnessed a smart bounce from lower levels. The bounce occurred from near the key lower support at Rs 1,550 level, as per the concept of change in polarity. Volume has expanded during the up-move and the weekly 14-period RSI is placed above the 60 mark, which is indicating a positive bias. The analyst said buying can be initiated on the counter at current market price, and more can be added on dips down to Rs 1,535 level.
InterGlobe Aviation| Buy| Target price Rs. 1,650| Stop loss Rs 1,445
After witnessing a sharp weakness in the mid to later part of October month, the stock price has shifted into a consolidation type pattern in the last few weeks. The stock price is currently making an attempt to stage upside breakout of the consolidation around Rs 1,530-40 levels. “We also observe a larger positive sequence of higher tops and bottoms and currently the stock price placed near the higher bottom around Rs 1,380. The daily and weekly RSI indicates further strengthening of upside momentum in the stock price ahead,” he said. The analyst said buying can be initiated in the stock at current market price, and more can be added on dips down to Rs 1,470.
Vaishali Parekh, Senior Technical Analyst, Prabhudas Lilladher
Voltas | Buy| Target price Rs 750 | Stop loss Rs 665
This stock has made a perfect higher bottom formation pattern in the daily chart, taking support near the 50-DMA at Rs 665 level and has indicated a decent bounce back to imply strength and potential to rise further upside in the coming days. The RSI has also showed trend reversal to maintain a positive .
Greaves Cotton | Buy| Target price Rs 150 | Stop loss Rs 127
This stock has almost made a Double Bottom formation at around Rs 128 level and picked up pace to maintain a positive bias with the RSI also showing a trend reversal to imply strength and potential in the stock. The analyst anticipates a further rise in the coming days.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, ChartviewIndia.in
Ashok Leyland| Buy| Target price Rs 89| Stop loss Rs 73.90
This counter appears to be on the cusp of a breakout as it closed above its critical long term moving averages, which suppressed the rallies in the past. However, momentum shall get cemented further on a close above Rs 81 level. For the time being strong support is visible around Rs 74, and hence, as long as it sustains above the said level, one should remain positive and look for a major breakout above Rs 81 level.
RBL Bank| Buy| Target price Rs 357| Stop loss Rs 297
This counter appears to have formed a durable bottom at recent low of Rs 230 registered on October 23. Since then it appears to have embarked on a short-term uptrend and after a brief pause for couple of sessions this counter appears to have resumed its uptrend from the recent low of Rs 296. As right technical stop loss level of this counter is somewhat far away from the current market price positional traders are advised to adopt a two pronged strategy of buying now and adding further on dips in the Rs 310 – 305 range, the analyst said.
Sun Pharma Advanced Research |Buy| Target price Rs 185| Stop loss Rs 148
After registering a Double Bottom last October around Rs 113 level, this counter appears to have embarked on a fresh leg of uptrend as it swiftly rallied towards its resistance band placed around Rs 160 level. Interestingly, this leg of up-move is on the back of relatively higher volumes and the stock closed above its 200-day moving average with a strong close on November 7. As long as it sustains above Rs 149 level, a breakout above Rs 165 level can be expected, the analyst said. On such a breakout a bigger target of Rs 185 is possible, he said.
HDFC Asset Management | Buy | Target price Rs 3,715 | Stop loss Rs 2,890
This stock is in a strong uptrend continuously moving in a ‘Higher Top Higher Bottom’ price cycle formation. On the daily chart, after a brief pause for the last few sessions by trading in a narrow range, the stock prices have broken above the higher range indicating a continuation of the uptrend. The said breakout is supported with a strong bullish candle and above increase in volume.
JK Cement | Buy | Target price Rs 1,332 | Stop loss Rs 1,097
This stock has been steadily moving higher since last many months and has eventually closed at its all-time high. On the weekly chart, stock prices have closed above Rs 1,160 level, which acted as a stiff hurdle during the year 2017 and 2018. The consolidation breakout from the last two years has resulted in the formation of ‘Saucer’ formation. Stock prices have now entered uncharted territory and with the above price pattern analysis, the broking firm senses a strong upside in the counter in the near term.
Ajit Mishra, Vice President Research, Religare Broking
Havells India| Buy| Target price Rs 730| Stop loss Rs 684
Havells has been inching higher gradually after forming a strong base around 100 EMA on the weekly chart. It has also surpassed the hurdle of multiple moving averages on the daily chart of late. In short, all Indications are pointing towards further up move in the near future.