INSUBCONTINENT EXCLUSIVE:
NEW DELHI: There was no relief for domestic equities on Monday, as frontline indices Sensex and Nifty lurched lower sharply amid a major
newly-imposed income-tax surcharge in the higher income bracket is here to stay
Uninspiring quarterly numbers, weak global cues, rising crude oil prices, a geopolitical flareup in West Asia and rupee's weakness
further deteriorated investor sentiment.
How to trade in such a market? Be cautious and remain stock-specific, say analysts.
Based on
recommendations from various analysts and brokerages, here are eight stocks that the analysts said should log some gains over the next two
Subash Gangadharan, Senior Technical - Derivatives Analyst, HDFC securitiesIndraprastha Gas (IGL) | Buy | Target price: Rs 350 | Stop loss:
Rs 310 IGL has shown a lot of relative strength in past two weeks
While the market has been in correction mode, IGL shares have rallied smartly from the lows of Rs 295 to gain almost 10 per cent in last two
Technical indicators, too, are giving positive signals as the recent rally in the stock has led it to close above the 13-day and 50-day SMAs
The 14-day RSI is in rising mode and not overbought
The Relative Strength indicator also is in an uptrend, indicating that the stock is set to outperform Nifty.
Just Dial | Buy | Target price:
Rs 860 | Stop loss: Rs 750This stock has been consolidating in the Rs 743-796 range for the past several weeks
This week, it bounced back from the lower end of the trading range on healthy volumes, despite weakness in the broader market
In the process, the stock has closed above the 13-day SMA
The 14-day RSI, too, has bounced back and cut its nine-day EMA from below, which is a positive signal.
Rajesh Bhosale, Technical Analyst,
Angel BrokingGujarat State Petronet | Buy | Target price: Rs 230 | Stop loss: Rs 190In spite of the recent carnage in midcaps, this stock
has shown a comparative outperformance
On the weekly chart, the stock has finally broken above the hurdle after facing resistance around the Rs 200 mark for more than six times in
The said breakout was supported by an increase in volume
The stock price is well above major moving averages such as 50-DSMA and 200-DSMA, indicating overall bullishness on the counter
given a thumbs up to its better-than-expected quarterly earnings
As a result, the prices have witnessed a gap-up opening and the optimism got extended last week
On the weekly chart, the stock has been gyrating in the Rs 760-690 range for past four months and the prices have since broken above the
higher range, confirming a breakout of the rectangular channel pattern
Momentum oscillator RSI is in the overbought zone
However, the structure seems to be placed positively
The stop loss should be fixed at Rs 740," said Bhosale.
Mustafa Nadeem, CEO, Epic ResearchKaveri Seed Company | Buy | Target price: Rs 480 |
making it a reversal pattern
The stock has also closed above its Head and Shoulder neckline, after giving a false breakdown, indicating buying at lower levels
Volume has been much higher compared with the average volume in July and almost thrice of its last three-day average
bottom on the daily chart with a Harami pattern
With that, there is a positive divergence on the charts with the stock making lower lows and the RSI moving higher sustaining the previous
of price and volume, this counter appears to be in a minor consolidation mode of 50 points since last six sessions and it looks ripe for a
fresh breakout above this range as it almost remained indifferent to the broader selloff witnessed in the market
Seed Company | Buy | Target price: Rs 480 | Stop loss: Rs 410This counter strongly recoiled in the last session on relatively higher volumes
without violating its corrective swing low of Rs 412, hinting that a fresh short-term upswing might be in progress
pullback which can test its interim top placed at Rs 482
loss: Rs 190 The 200-day exponential moving average (DEMA) of the stock on the daily chart is currently placed at Rs 194.13
The stock is in the consolidation zone but holds its higher levels, trading in high highs and lows
Apart from this, it has formed an Inverted Head and Shoulder pattern on the weekly charts and seen a breakout of the same while trading
Please consult your financial adviser before taking any position in the stock/s mentioned.)