NEW DELHI: Sustained buying across sectors helped equity benchmarks Sensex and Nifty extend their winning streak into the third consecutive session on Wednesday.
Weakness in crude oil prices may be the immediate trigger for the rally in stocks while improved prospects for Prime Minister Modi in the forthcoming general elections have also lifted sentiments.
Analysts say geopolitical events and the political discourse in the run-up to general elections would be key issues steering the market over the next few weeks.
Analysts says the market is full of stock-specific opportunities. Based on various brokerage recommendations, here is a list of 12 stocks that can potentially deliver solid gains over the next 2-3 weeks.
Aditya Agarwala, Senior Manager- technical analysis, YES Securities
JB Chemicals & Pharmaceuticals | Buy | Target price: Rs 350-370 | Stop loss: Rs 324
On the weekly chart, JB Chemicals & Pharmaceuticals has turned upwards after taking support at the 61.8 per cent Fibonacci retracement level. Moreover, it is on the verge of a breakout from a triangle pattern neckline placed at Rs 340. A close beyond this resistance will trigger a bullish breakout, taking it higher to the levels of Rs 350-370. Momentum indicator RSI has turned upwards from the 50-level after forming a positive reversal affirming bullishness.
IPCA Laboratories | Buy | Target price: Rs 900-925 | Stop loss: Rs 800
On the weekly chart, IPCA Laboratories has broken out of an ascending triangle pattern, resuming the upward journey. A sustained trade above Rs 856 with healthy volumes would take the stock higher to the levels of Rs 900-925. On the daily chart, it has broken out of a sideways consolidation with high volumes, affirming the bullishness. Moreover, RSI has turned higher from the 50-level, indicating that bulls are in control in the stock.
Vaishali Parekh, Senior Technical Analyst, Prabhudas Lilladher
WockhardtNSE 1.10 % | Buy | Target price: Rs 490 | Stop loss: Rs 385
This stock has witnessed a decent correction and indicated signs of bottoming out around Rs 387 level. It has currently produced a bullish candle pattern on the daily chart to signify strength and potential to rise further. The RSI has slowly and steadily improved and has indicated a trend reversal to signal a buy.
L&T Finance Holdings | Buy | Target price: Rs 146 | Stop loss: Rs 118
The stock has given a decent correction from the peak of Rs 159 to bottom out near the Rs 120 level. It has made a positive candle to make the chart attractive and signify potential for further upward movement in the coming days. The RSI also has indicated a trend reversal to signal a buy. “With favourable indicators supporting and decent volume activity witnessed, we recommend a buy in this stock for an upside target of Rs 146, keeping a stop loss of Rs 118,” said Parekh.
Jay Thakkar, CMT, Head Technical and Derivatives Research, AVP Equity Research, Anand Rathi Shares and Stock Brokers
JSW Energy | Buy | Target price: Rs 71 | Stop loss: Rs 63
This stock has formed a symmetrical triangular pattern and the Wave E of the same seems to have got over. Now, the stock is likely to inch towards the upper end of the range and may, thereafter, provide a breakout.
Suven Life Sciences | Buy | Target price: Rs 287 | Stop loss: Rs 228
This stock has witnessed a breakout from the inverse head and shoulders pattern which is a bullish reversal pattern. The momentum indicator MACD has also provided a buy crossover on the daily as well as weekly charts.
Kkunal Parar, Senior Technical Research Analyst, Choice Broking
Coal IndiaNSE 0.66 % | Buy | Target price: Rs 247 | Stop loss: Rs 226
On the Daily chart, the stock has formed a ‘hammer candlestick’ and is trading above Rs 227.85, which is 50-days simple moving average. This indicates a reversal sign and the stock may see a northward movement. On the weekly chart, the stock has formed a big bullish candlestick and the volume activity is also very appealing during the trading session which indicates an accentuated buying activity.
Reliance Capital | Buy | Target price: Rs 199 | Stop loss: Rs 173
On the weekly scale, the stock has formed a bullish Harami pattern which is a reversal formation and suggests that the trend may reverse in the counter. On daily scale, the stock has given a breakout of its falling trend line, suggesting a bullish move in the counter. Daily momentum indicator RSI reading is at 58.13 level and has given a breakout of previous resistance with a positive crossover which indicates a positive breath in the stock.
Rajesh Bhosale, CMT, technical analyst, Angel Broking
IndusInd BankNSE -0.44 % | Buy | Target price: Rs 1,600 | Stop loss: Rs 1,465
This stock seems to be back in momentum by crossing above the higher range of last few weeks’ consolidation. On the daily chart, prices have closed above the higher range of Bollinger band, indicating a strong trended move in the near-term, post its recent long consolidation. The above-said breakout is supported with above-average volume. Moreover, momentum oscillator RSI has given fresh buy signal with its smoothened moving and looking at all the above factors, a strong upside from the current level cannot be ruled out.
ICICI LombardNSE -0.15 % General Insurance | Buy | Target price: Rs 1,050 | Stop loss: Rs 892
The stock has broken above its resistance zone of multiple highs at Rs 930. The said zone acted as a strong supply zone three times in the last five months and breaking above the same now indicates a change of polarity. “Technically, averages and oscillators are well placed in positive zone and with prices entering into unchartered territory, we sense a good momentum move in the counter in the near-term,” Bhosale said.
Mazhar Mohammad, Chief Strategist – technical research & trading advisory, Chartviewindia.in
Tata Elxsi | Buy | Target price: Rs 980 | Stop loss: Rs 895
The price behaviour of last couple of weeks is suggesting that this counter has stabilised after a deep cut from the highs of Rs 1,500–830 levels. After bottoming out around Rs 830, a higher bottom appears to be in place around Rs 875 after retracing 50 per cent of its last leg of rally from the lows of Rs 830-915 levels. Moreover, with Friday’s price action, it also appears to have registered a breakout above its inverted head & shoulders formation, confirming a reversal of trend. Hence, it can eventually head towards Rs 980, which is a bare minimum Fibonacci retracement of 23 per cent of the fall from the highs of Rs 1,470.
Hero MotoCorpNSE -1.07 % | Buy | Target price: Rs 2,890 | Stop loss: Rs 2,590
The price action of last couple of weeks in this counter is pointing towards strong buying interest emerging around Rs 2,650. Besides, there seems to be a double bottom formation around Rs 2,600. Last Friday’s price action resulted in a bullish Harami formation which is usually a reversal sign.
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial advisor before taking any position in the stock/s mention.)