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Asian Paints, ZEEL, Page Industries among 12 stocks that analysts say can deliver gains in 2-3 weeks

Analysts believe benchmark indices are staring at a narrow range bound trade for this week.

, ETMarkets.com|
Last Updated: Jan 20, 2020, 12.16 PM IST
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According to Nagaraj Shetti, technical research analyst at HDFC Securities, the short term trend of Nifty continues to be up with range bound action.
MUMBAI: Benchmark equity indices Sensex and Nifty scaled fresh record highs in Monday’s session but soon gave up gains to trade deep into the red.

Analysts believe benchmark indices are staring at a narrow range bound trade for this week, after scaling all-time high levels and selecting the right bets would be crucial for traders. The valuations appear stretched for the quality stocks, as earnings have not yet caught up.

According to Nagaraj Shetti, technical research analyst at HDFC Securities, the short term trend of Nifty continues to be up with range bound action. “We are unlikely to see any major up move above 12,400-12,450 levels in the next week, as the Nifty could face selling pressure from the highs,” he said.

“At the same time, we are unlikely to see any significant downward correction ahead of Union Budget 2020. Weekly support is placed at 12,280-12,260 levels,” he added.

Amid this market outlook, here are 12 money-making ideas that technical analysts believe could deliver solid gains over next few weeks:

Shrikant Chouhan, SVP Technical Research, Kotak Securities

Asian Paints| Buy| Target price Rs 1,920 | Stop loss Rs 1,790

The stock is with a strong uptrend, and rallied from Rs 1,520 to Rs 1,820 without any meaningful correction in 3 months. Since the last one month, the stock has been going through time correction and has formed a rectangle formation. On Friday, it gave range and rectangle breakout, which implies that the correction has completed, the analyst said. He advises buying the stock at current levels and adding more on declines at around Rs 1,810, keeping a stop loss at Rs 1,790 for the same. The target price suggested for the stock is Rs 1,920.

Colgate-Palmolive (India) | Buy| Target price Rs 1,585| Stop loss Rs 1,480

The stock formed higher low on the daily chart and buying has emerged at lower levels for the stock with a rise in volume activity. On a weekly time frame, it has formed a strong bullish candle, the analyst said. In the last few days, it traded in a narrow range and volatility has also reduced. Looking at the overall trend, the analyst believes it will continue to rise and one can see the stock making all-time high in the near future. He recommends buying the stock with a target price of Rs 1,585 and a stop loss of Rs 1,480.

Cadila Healthcare| Buy | Target price Rs 282 | Stop loss Rs 263

The stock witnessed sustained sell-off over the past few months, however, the strong demand zone around Rs 110 has emerged as support for the same. On the weekly charts, the stock is forming a rounding bottom formation, along with which the stock has consistently seen an increase in volume activity indicating strong buying, the analyst said. He expects the stock to perform going ahead, and recommends buying the stock with a target of Rs 282, and a stop loss of Rs 263.

Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in

Sudarshan Chemical Industries| Buy| Target price Rs 503| Stop loss Rs 440

The analyst believes Friday’s strong move is hinting that this counter appears to have resumed its up move after a brief consolidation for 4 sessions around Rs 440. “If the stock manages to sustain above Rs 470, then it can initially head towards Rs 502, but beyond that a bigger target of Rs 565 can’t be ruled out,” the analyst said. As momentum in this counter is looking strong, the brokerage advises positional traders to buy at this point of time and on correction in the zone of Rs 460 – Rs 455 and look for an initial target of Rs 503. The stop suggested for the trade is a close below Rs 440.

Zee Entertainment| Buy| Target price Rs 300 | Stop loss Rs 259

At recent lows of Rs 260, this counter retraced 62 per cent of its last leg of rally from the lows of Rs 199 – Rs 364 on weekly charts which resulted in a strong bullish candle, the analyst said. He believes this strength on weekly charts accompanied with decent consolidation around Rs 260 is hinting that a sustainable pull back rally is unfolding with a near -term bottom present at those levels. In that scenario initially, it can head to test its interim top present around 300 levels, he believes. According to the analyst, as technical stop seems to be far away from current price, positional traders will be better off by adopting a two-pronged strategy of buying now and adding further on dips in the zone of Rs 270 – Rs 265. Stop suggested for the trade is a close below Rs 259.

Grasim| Buy | Target price Rs 805| Stop loss Rs 735

This counter appears to be consolidating in a larger band of Rs 770 – Rs 735 for the last couple of weeks. Hence, dips are getting bought into, hinting at some sort of accumulation at lower levels. The analyst believes once this counter manages a sustainable close above Rs 770, it can witness a swift move towards its logical targets placed around Rs 805. He, therefore, advises positional traders to buy into this counter now and on dips into the zone of Rs 750 – Rs 740 levels. The stop loss suggested for the trade is a close below Rs 735.

Amit Gupta, Co-Founder and CEO, TradingBells

Page industries | Buy | Target price Rs 30,500 | Stop loss Rs 24,000

According to the analyst, the counter is bottoming out with a classical bullish inverse head and shoulder formation, where the neckline is placed at Rs 26,200, and above this level, it is likely to rally towards Rs 30,500. The analyst said the stock is trading above its all-important moving averages where a previous breakout point of Rs 24,000 will act as strong support. Momentum indicators are positively poised on both daily and weekly charts, and the analyst recommends buying the stock with a target of Rs 30,500 with a stop loss at Rs 24,000.

Philip Carbon Black | Buy | Target price Rs 167 | Stop loss Rs 128

The analyst was of the view that this counter has built a very strong base at Rs 108 and it is now breaking out after 6 months of consolidation. The brokerage believes this is a fresh start of a rally which may continue for the immediate target of Rs 167 ,while on the downside 200-DMA of Rs 128 will act as a strong support level and should be considered as a stop loss.

Bhavin Mehta VP Derivatives Strategist, Dolat Capital

Motherson Sumi | Buy | Target price Rs 160 | Stop loss Rs 130

The stock has been trading in the rising channel with 50 days EMA placed at Rs 137.50. The analyst believes the recent correction in the price provides a good opportunity to enter the stock for probable a breakout above R s150 in the short term. He recommends buying the stock with a target of Rs 160, and a stop loss of Rs 130.

Vinay Rajani, Technical Research Analyst, HDFC securities.

Apollo Hospitals | Buy | Target price: Rs 1,750 | Stop loss: 1,550

The stock price has registered a new all-time high at Rs 1,623 with a jump in volumes. Nifty Pharma Index has surpassed its 200-DMA resistance for the first time since May. The stock price has broken out from the consolidation it was experiencing for the last five months. The analyst said moving average and oscillator setup has been bullish on weekly and monthly charts. He recommends buying the stock with a target price of Rs 1,750, and a stop loss of Rs 1,550.

Indiamart | Buy | Target price: Rs 2,300 | Stop loss: Rs 2,070

The analyst pointed out that the stock price has broken out from symmetrical triangle on the daily charts. It has closed above the consolidation range of the last eight weeks with the higher volumes, and is placed above all important moving average parameters. The analyst believes the oscillator setup is bullish on the short-term charts, and recommends buying the stock with a target price of Rs 2,300, and a stop loss of Rs 2,070.

Vikas Jain, Senior Research Analyst, Reliance Securities

Larsen & Toubro| Buy | Target price Rs 1,425 | Stop loss Rs 1,250

The stock remained under pressure post recording a new 52-week high of Rs 1,605, but the stock is witnessing positive pullbacks from lower levels. Due to recent recovery in the stock, RSI rose to 40 mark and has given a positive cross-over, the analyst said. On the lower side, the stock will find major support around Rs 1250, from where we have witnessed sharp up move 3 times in the last one year, he added. He recommends buying the stock currently and on dips for the target of Rs 1,425 and with a stop loss of Rs 1,250.
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