INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Fear of US recession came back to haunt financial markets on Monday after a historical trend of inverted yield curve resurfaced
last Friday.
This coupled with repeated weak macroeconomic data has strengthened the fear that all is not well with the global economy and
India, being among the most prominent emerging markets, cannot shrug off the heat
A 380-point fall in the Sensex came on the back of a wave of selloff across sectors
Besides global cues, rupee weakness has also contributed to the fall in stocks
Analysts said investors should adopt a prudent, stock-specific approach in such a market.
Based on various brokerage recommendations, here
is a list of 10 stocks that can potentially deliver solid gains over the next 2-3 weeks
Rajesh Bhosale, Technical Analyst, Angel BrokingHeidelbergcement India | Buy | Target price: Rs 192 | Stop loss: Rs 167This stock recently
witnessed a sharp upsurge from Rs 145 level to Rs 184 and which was shadowed by profit booking that pushed prices back towards Rs 170 level
At this juncture, the stock is showing much resilience after forming a Japanese candlestick pattern, which resembles a bullish engulfing
Volume analysis indicated low volume during the down move, whereas high volume during the upmove suggests accumulation on the counter
In addition, momentum oscillator RSI seems to have formed a base around the 65 mark on the daily chart and has seen a fresh bullish
crossover with its smoothened moving average
Infosys | Buy | Target price: Rs 804 | Stop loss: Rs 707During the recent market rally, this stock and its peers lacked participation
Some technical indicators are hinting at an end to its slumber phase and a period of outperformance in the near term
The recent bounce from lower levels was accompanied by increasing volume, indicating a bottom out and signs of optimism
The momentum oscillator has crossed above the positive zone at 50, supporting the buy call
Aditya Agarwala, Senior Manager- technical analysis, YES SecuritiesTeamlease Services | Buy | Target price: Rs 3,200-3,350 | Stop loss: Rs
2,800On the weekly chart, this stock is on the verge of a breakout from the channel pattern, indicating bullishness
A sustained trade above this neckline can extend the upward move to Rs 3,200-3,350 levels
The RSI has also turned upward after taking support at the lower end of the bull zone i.e
It has formed a positive trend reversal on the daily chart, suggesting bullishness on the counter.
Asian Paints | Buy | Target price: Rs
1,520-1,570 | Stop loss: Rs 1,420On the weekly chart, Asian Paints is on the verge of a breakout of an ascending triangle pattern neckline
Moreover, it has turned up after taking support at the 61.8 per cent Fibonacci retracement
The RSI has turned upward after forming a positive divergence, affirming bullishness.
Vaishali Parekh, Senior Technical Analyst at Prabhudas
LilladherCastrol India | Buy | Target price: Rs 180 | Stop loss: Rs 154This stock has formed a higher bottom pattern on the daily chart,
taking support at the significant 200-DMA and has also moved past the 50-DMA to signify strength
It has improved the bias for further upward movement in the coming days
The RSI has also indicated a trend reversal to give a buy signal
Parekh said.
Astral Poly Technik | Buy | Target price: Rs 1,300 | Stop loss: Rs 1,080This stock has been in an upward trending mode and with
a slight correction witnessed in recent times, the chart looks attractive for further upward momentum in the coming days
The indicators are all favourable and with the RSI showing a trend reversal, the bias is maintained positive
Kkunal Parar, Senior Technical Research Analyst, Choice Broking CanFin Homes | Buy | Target price: Rs 347-355 | Stop loss: Rs 308On the
daily chart, this stock has been trading above its upper band of slightly higher top higher bottom formation with above-average volume,
which indicates a robust upside movement in the counter
On the weekly chart, the stock has started to trade above its 50-week moving average placed at Rs 309.40, which shows a positive trend in
the counter.
SRF | Buy | Target price: Rs 2,610-2,665 | Stop loss: Rs 2,350On the weekly chart, this stock has seen a breakout of its
downward falling trend line, which indicates a robust upside movement in the counter
On the hourly chart, the stock has been trading with strong support of 21- and 50-hourly moving average, which suggests an uptrend for the
Moreover, the stock has been trading in an upward rising channel formation since last many days which is a continuation formation and
suggests a further upside movement.
Mustafa Nadeem, CEO, Epic ResearchInfosys | Buy | Target price: Rs 798 | Stop loss: Rs 729The stock has
breached a declining trend line resistance on the daily chart along with higher volumes that are above average as compared to the last few
RSI on the daily scale is seen above 50, showing positive divergence
"We expect Infosys to gain momentum in coming days with the stock moving to higher levels of Rs 770 and Rs 798, with a stop loss of Rs 729,"
said Nadeem.
Jubilant Foodworks | Buy | Target price: Rs 1,495 | Stop loss: Rs 1,385A bullish engulfing pattern was seen on the chart after
two days of consolidation
A bullish trend is in place while the stock has sustained its support line which is a point of inflection for price action
"We expect Jubilant to keep a sustained move in the short-term, heading upwards to the level of Rs 1,495, with a stop loss of Rs 1,385,"
| Stop loss: Rs 2,390Since this counter has registered a new lifetime high by getting past Rs 2,446, it is pointing towards the beginning of
Another positive factor to observe is that this breakout is coming on the back of a minor consolidation of around 10 sessions
City Union Bank | Buy | Target price: Rs 219 | Stop loss: Rs 189This counter appears to be heading to a new lifetime high, as it appears to
have registered a breakout with a close above its interim top at Rs 198, registered in January 2019
However initially, it may face some hiccups around its lifetime high at Rs 207, registered in August 2018
But, once it manages a close above that hurdle, its next target can be towards Rs 219.
(Views and recommendations given in this section are
Please consult your financial advisor before taking any position in the stock/s mentioned.)
