NEW DELHI: Domestic stocks declined sharply in early trade on Monday, with benchmark Sensex slipping 150 points and Nifty testing 11,770 within the first 10 minutes of trade amid a spike in crude oil prices and rising trade friction.Lacklustre global cues ahead of Fed meet and rupee's weakness also hurt investors risk appetite.Analysts attributed the correction to valuation concerns.
They say the forthcoming Budget would offer directional cues to the market.
Around 9:30 am, the BSE Sensex was down 136 points, or 0.35 per cent, at 39,316, while Nifty50 fell 47 points, or 0.40 per cent to 11,776.
While the market remains in choppy waters, technical experts advised investors to adopt a stock-specific approach.
Based on the recommendations by various analysts and brokerages, here is a list of 10 stocks that they say can potentially deliver gains over next 2-3 weeks.
Mazhar Mohammad, Chief Strategist Technical Research - Trading Advisory, Chartviewindia.in Lupin | Buy | Target price: Rs 770 | Stop loss: Rs 697Long lower shadows around the Rs 700 level is hinting at possible accumulation on this counter as it recoiled on Friday from the lows of Rs 710 by escaping the correction in the broader market.
Sustaining above the psychologically important support at Rs 700, this counter can smartly stage a decent pullback rally with targets placed around Rs 773, which is the 38.2 per cent retracement of its last leg of fall from the highs of Rs 884705.
As the risk-reward ratio looks attractive, positional traders can go long for a target of Rs 770 with a stop loss below Rs 697 on a closing basis, said Mohammad.Reliance Industries (RIL) | Buy | Target price: Rs 1,360 | Stop loss: Rs 1,300This counter appears to be attracting buying interest around Rs 1,305 level, as it has bounced on multiple occasions after testing the said level in recent past.
There seems to be a trading opportunity on the long side until the said support level is broken.
Positional traders can buy into this counter for a target of Rs 1,360, keeping a stop loss at Rs 1,300," Mohammad said.Rajesh Bhosale, Technical Analyst, Angel BrokingGlenmark Pharmaceuticals | Buy | Target price: Rs 570 | Stop loss: Rs 507After a strong underperformance over the past few months, this stock is forming a bullish reversal harmonic AB=CD pattern.
The said formation emerged as the daily momentum oscillator RSI gave a fresh buy signal with its smoothened moving average in the deeply oversold territory.
Moreover, the MACD histogram has entered the positive territory.
In addition, the stock is witnessing a classical Doji pattern on the weekly chart, matching the lows with the previous session, which suggests the bearish momentum has fizzled out and a strong upside is possible in the near term.
PI Industries | Buy | Target price: Rs 1,280 | Stop loss: Rs 1,110This stock is in a strong uptrend, continuously forming higher tops and bottoms.
On the daily chart, after consolidating for a month and twice witnessing resistance around Rs 1,150 level, the stock has broken above the hurdle, confirming the breakout of a bullish pattern.
The said breakout accompanied an increase in volume and strong bullish candlestick pattern.
Moreover, major moving averages i.e.
20, 50 - 200-day SMAs and the RSI are placed in the positive territory, which supports the buy call.
Aditya Agarwala, Senior Manager- Technical Analysis, YES SecuritiesTeamlease Services | Buy | Target price: Rs 3,300-3,420 | Stop loss: Rs 2,950On the daily chart, the stock is on the verge of a breakout from an ascending triangle pattern neckline placed at Rs 3,200.
A successful breakout from the pattern can take it higher to Rs 3,200-3,420 levels.
On the weekly chart, the stock is making higher highs and lows, confirming the bullish trend.
The RSI has turned upward after taking support at the 50-level on the weekly chart, which suggests bullishness on the counter.
The stock can be bought in the Rs 3,080-3,120 range for targets of Rs 3,300-3,420, keeping a stop loss below Rs 2,950, Agarwala said.Larsen - Toubro (L-T) | Buy | Target price: Rs 1,630-1,675 | Stop loss: Rs 1,460On the daily chart, this stock is on the verge of a breakout from a bullish flag pattern, suggesting bullishness.
On the weekly chart, it has formed a bullish Harami candlestick pattern, which signals higher levels in the coming sessions.
Moreover, the RSI has formed a positive reversal at the 45-level and turned north, indicating bullishness on the counter.
This stock can be bought in the Rs 1,520-1,530 range for targets of Rs 1,630-1,675, keeping a stop loss below Rs 1,460," Agarwala said.Weekly recommendations 16 Jun, 2019Dalal Street continued to trade on a sluggish note last week as higher valuations weighed on the market amid lack of triggers.
Analysts say investors will struggle to figure out a strategy to play.
Milan Vaishnav picked the following stocks based on their technical charts, which can potentially help investors make the most of this lacklustre market.Maruti |Sell | Target Rs 655016 Jun, 2019The stock is presently in a descending triangle formation which has resulted out of the structure of a similar bottom in the range of 6480-6500 and with sharply falling tops.
The daily MACD is in continuing sell mode.
The price has slipped below its 50 and 100DMA which is bearish.
The RSI has marked a fresh 14-period low.
The weekly RSI, too, is seen making lower highs upon visual inspection.
The levels of 6950 should be used as a stop-loss.BEML | Sell | Target: Rs 82016 Jun, 2019This stock has shown a couple of signs which point towards possible weakness over the coming days.
After failing to clear a double top resistance, the stock retracted.
It breached its 50-DMA and presently sits on its 100- DMA.
The RS line against the broader CNX500 index is seen inching lower and has also fallen below its 50-DMA.
The daily MACD remains in continuing sell mode.
On the weekly charts, the weekly RSI has shown a bearish divergence against the price, and it is seen making lower tops.
A fresh sell signal also emerged on the weekly Stochastic.
Any close above 1025 should be used as a stop-loss.NCC | Buy | Target: Rs 10816 Jun, 2019The stock suffered a sharp set back due to negative news flow over previous days.
It has taken support over its multi-month upward rising trend line which also coincides with the 200-DMA, and another multiple pattern supports.
The daily MACD is about to show a positive crossover over the coming days.
The daily Stochastic remains negative.
The stock moved past the levels of 100 and as per the options data, if it stays above 100, it can potentially test 105 and 108 levels.
Any close below 95 should be treated as a strict stop-loss.Gemstone Equity Research - Advisory Services.
SBIN | Sell | Target: Rs 328 16 Jun, 2019The stock cleared its significant double top resistance that was formed in the 326-334 range and tested highs near 364 levels.
However, it witnessed some corrective moves after that.
Based on a couple of signals that have emerged, the stock may see some weakness and may complete its throwback.
The stock has slipped below its short term 20-DMA, and this can infuse some short term weakness.
The daily MACD stays in continuing sell mode.
The RSI remains neutral against the price, but it is seen marking lower tops.
Similar formation in RSI is also observed on the weekly charts.
Any close above 355 should be used as a stop-loss.
Vaishali Parekh, senior technical analyst at Prabhudas LilladherNCC | Buy | Target price: Rs 116 | Stop loss: Rs 93This stock has witnessed a decent erosion in recent time from the peak of Rs 119 to take support and consolidate near Rs 92-93 levels.
It has indicated a bounceback with positive candle pattern to signify strength and has the potential to rise further in the coming days.
The RSI has also indicated a trend reversal to give a buy signal and improved the bias.
With good volume participation witnessed, we recommend a buy on this stock for an upside target of Rs 116, keeping a stop loss of Rs 93," Parekh said.BPCL | Buy | Target price: Rs 420 | Stop loss: Rs 374This stock has been in a trending mode with a series of higher bottom formation pattern.
"At present, the support has been emerged near Rs 378 and we expect it to rise further to reach the previous peak in the coming days, Parekh said.
The RSI is also on the verge of a trend reversal to improve the bias, with the chart looking attractive, she added.Mustafa Nadeem, CEO, Epic ResearchAdani Ports | Buy | Target price: Rs 457 | Stop loss: Rs 412The stock is on an uptrend, trading above its short-term moving averages, making higher tops and bottoms.
The stock is making a flag pattern formation, which is a bullish continuation pattern.
The RSI is well above 60, indicating strength in price.
At the same time, volume has increased in the past couple of days, indicating an impending breakout.
We expect Adani Ports to move towards Rs 457 level in the coming days, while Rs 412 (20-DMA) is our stop loss, Nadeem said.Bharat Electronics | Buy | Target price: Rs 124 | Stop loss: Rs 103This stock has seen a breakout from an Inverted Head and Shoulder formation, with a decent run-up from lower level at Rs 99.
The stocks RSI is above 60, showing strength in prices despite recent consolidation while OBV remains elevated, signalling accumulated buying.
A recent correction, which has formed a flag pattern, indicates further bullishness.
(Views and recommendations given in this section are the analysts own and do not represent those of ETMarkets.com.
Please consult your financial adviser before taking any position in the stock/s mentioned.)