INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The domestic equity market had to endure a volley of headwinds last week
A plunging currency, weak global cues in the wake of a lingering trade war and subdued macro indicators turned investors indecisive
The rupee last week plunged to a record low of 70.32 against the US dollar, mainly on account of global currency market turmoil emanating
from Turkey, which infused weakness in other emerging market currencies as well.
On top of it, worries about the health of the Chinese
economy spooked most equity markets, triggering a rush to safe-haven assets, including the US dollar.
Despite all the negative development,
domestic equity indices inched up last week
Nifty rose 0.36 per cent for the week, while the Sensex clocked a small gain of 0.20 per cent.
Two major factors helped the market move up;
first, hope of an end to the trade tensions after the US and China agreed to hold fresh talks on trade-related issues, and secondly,
weakness in the rupee proved to be manna from heaven for export-oriented sectors, such as IT and pharma
This coming week is going to be a truncated one and analysts expect the market to swing to the tune of global cues
While the indices have already climbed to record peaks, analysts see stock-specific opportunities all over.
Based on various brokerage
recommendations, we picked 10 stock ideas that can potentially deliver solid gains over the next 11-21 sessions.
Mazhar Mohammad, chief
scrip appears to have registered a double bottom around Rs 2,605 level after the recent big fall from the highs of Rs 3,195 level
On last Thursday, when the equity market was reeling under selling pressure, this counter clocked decent gains, suggesting some sort of
accumulation at lower levels
Hence on recovery, a minimum retracement will take this counter towards the Rs 2,830 mark
As risk-reward ratios will be favourable, positional traders should buy into this counter.
BEML | Buy | Target price: Rs 903 | Stop loss: Rs
it registered a higher bottom with three consecutive positive closes around the Rs 790 level
If a fresh leg of up move is in progress from the recent low of Rs 737, then eventually it should lead to the test of its recent high placed
State Bank of India | Buy | Target price: Rs 327 | Stop loss: Rs 290After retracing around 50 per cent of its last leg of a rally from the
As uptrend is intact in this counter with series of higher tops and higher bottom kind of formations, it should eventually head to test its
previous swing high of Rs 327
Aditya Agarwala, technical research analyst, YES Securities (India)PNB Housing Finance | Buy | Target price: Rs 1,430-1,480 | Stop loss: Rs
1,260On the daily chart, PNB Housing Finance has broken out of a bullish Flag pattern placed at Rs 1,330
A sustained trade above this resistance of Rs 1,330 with healthy volumes can take the stock higher to Rs 1,430-1,480 levels
The RSI has turned upwards after taking support at a neutral support around 50 mark, indicating a range shift in favour of the bulls.
Tech
Mahindra | Buy | Target price: Rs 735-760 | Stop loss: Rs 645On the weekly chart, Tech Mahindra is on the verge of a breakout from a
Triangle pattern resistance line placed at Rs 700
A successful breakout from the pattern neckline will trigger a bullish breakout resuming the bull trend
On the daily chart, it is on the verge of a breakout from a Flag pattern, affirming bullishness dominant currently
On the weekly chart, the RBI has turned upwards after breaking out of the upper Bollinger Band and has entered in the bull zone indicating
higher levels in the coming trading sessions
DHFL | Buy | Target price: Rs 730-750 | Stop loss: Rs 635On the Weekly chart, DHFL is on the verge of a breakout from the neckline of an
Ascending Triangle pattern placed at Rs 680
Further, the stock has turned upwards after taking support at the 50 per cent Fibonacci retracement level
On the daily chart, it continues to make higher highs affirming strength
RSI has turned upwards after taking support at the 40-level i.e
lower end of the bull zone, suggesting higher levels in the coming trading sessions
Milan Vaishnav, CMT, MSTACity Union Bank | Buy | Target price: Rs 215 | Stop loss: Rs 170The stock has been under secular uptrend over past
Currently highs in the Rs 188-193 zone, the stock has been consolidating in a sideways move over past couple of weeks
The prices have attempted a breakout and look set to resume the upward move again
The weekly MACD has reported a positive crossover and it is now bullish while trading above its signal line
A buy signal has also emerged on the weekly charts over stochastic, with a positive divergence against the price
On-Balance Volume (OBV) has also marked a fresh high which is bullish
RSI is seen breaking out of a formation and we can see the prices marking higher levels over coming days
Any move below Rs 170 will be negative for the stock.
Sun Pharmaceutical | Buy | Target price: Rs 714 | Stop loss: Rs 590The stock has
remained in a prolonged downtrend and is now seen attempting and subsequently confirming a reversal
The downward channel, which began from the Rs 1,100-1,150 zone, saw itself being converted into broad accumulation zone between Rs 450 and
Weekly MACD stays in continuing buy mode while Weekly RSI has marked a fresh 14-period high
It is also seen marking a breakout from a pattern
The prices have ended above the upper Bollinger band and a breakout is likely
Though a temporary pullback inside the band cannot be ruled, up move in prices is most likely to continue
The Stock remains in the leading quadrant on RRG when benchmarked against the Pharma Index which in turn remains in the leading quadrant as
Any move below Rs 590 will be negative for the stock.
SMC Investments LT Finance | Buy | Target price: Rs 195-200 | Stop loss: Rs 169The
stock made a 52-week low at Rs 140.55 on 16 July 2018 and a 52-week high of Rs 213.85 on 24 October 2017
The 200 days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs 165.84
As per the charts, the stock had witnessed massive upside from 80 to 214 levels in a single up move from December, 2016 to October, 2017
After that, it showed profit booking from higher levels and it tested 147, which was the 50 per cent Fibonacci retracement levels of entire
upside from 80 to 214, and has been started moving higher
1,000-1,020 | Stop loss: Rs 880The stock made a 52-week low at Rs 563.65 on 29 September 2017 and a 52-week high of Rs 999.70 on 18 April
The 200-day exponential moving average (EMA) of the stock on the daily chart is currently at Rs 838.12
Short-term, medium-term and long-term biases are looking positive for the stock as it has witnessed a decent correction from its all-time
high and started moving higher
managed to close above the breakout levels
So it is expected that buying momentum will continue for coming days
Please consult your financial adviser before taking any position in the stock/s mentioned.)5 stocks to bet on next week18 Aug, 2018The rupee
lurching from one low to another in the week gone by did unsettle investors on Dalal Street
But benchmark indices Sensex and Nifty finally kept their cool, signing off the week with a smile.
For the week, the Sensex notched up 79
points, or 0.21 per cent, settling at 37,948
The Nifty made a new home with a record high of 11,471, up 41.25 points, or 0.35 per cent, against a close of 11,430 on August 10.
A look
at the top stocks that you can go with the week ahead.City Union Bank | BUY | Target Price: Rs 21518 Aug, 2018The stock has been under
secular uptrend over past two years
Currently highs in the 188-193 zones, the stock has been consolidating in a sideways move over past couple of weeks
The prices have attempted a breakout and is set to assume its up move again.
The Weekly MACD has reported a positive crossover and it is
now bullish while trading above its signal line
A buy signal has also emerged on the Weekly Charts over Stochastic with a positive divergence against the price
RSI is seen breaking out of a formation and we can see the prices marking higher levels over coming days
Any move below 170 will be negative for the stockSun Pharma | BUY | Target Price: Rs 71418 Aug, 2018The stock has remained in a prolonged
downtrend and is now seen attempting and subsequently confirming a reversal
The downward channel that begin from 1100-1150 zones saw itself being converted into broad accumulation zone between 450-500 levels.
Weekly
MACD stays in continuing buy mode while Weekly RSI has marked a fresh 14-period high
It is also seen marking a breakout from a pattern
The prices have ended above the upper Bollinger band and a breakout is likely
Though a temporary pullback inside the band cannot be ruled, up move in prices is most likely to continue
The Stock remains in the leading quadrant on RRG when benchmarked against the Pharma Index which in turn remains in the leading quadrant as
Any move below 590 will be negative for the stock.Grasim | BUY | Target Price: Rs 1,19018 Aug, 2018The stock marked its high at 1368 and
thereafter marked a lower top at 1300
After that, it has remained under a corrective downward falling channel
After marking lows around 900-915 levels, few signals have emerged which point toward likely resumption of an up move in prices.
The Weekly
MACD has reported a positive crossover and it is now bullish while trading above its signal line
The Weekly RSI has also marked its fresh 14-period high which is bullish
RSI is also seen marking a higher bottom and breaking out of a pattern showing a bullish divergence against the price
An Engulfing Bullish Candle has emerged
This holds significance as it has occurred after some sustained corrective downtrend
Upward revision in prices cannot be ruled out over coming days
Any move below 975 will be negative for the stock.NCC | BUY | Target Price: Rs 11518 Aug, 2018The stock tested its high at 139.80 and then
formed a minor lower top at 135
Thereafter, it has witnessed a sharp corrective decline which saw the stock testing the 76-78 levels
A potential base has been formed around those levels as the stock has witnessed a technical pullback
We expected this pullback to continue
The lows were tested with exponential volumes and this may mean that the stock has find its potential bottom.
Weekly MACD is sharply moving
toward reporting a positive crossover
Weekly RSI is neutral and is seen rebounding from the oversold area
RSI is also seen moving out from a falling channel pattern
With some consolidation likely, continuation of a pullback cannot be ruled out
Any move below 94 will be negative for the stock.
