A host of stocks such as JB Chemicals & Pharmaceuticals, ACC, HEG and IIFL Finance and Alicon Castalloy are looking good on technical charts. Analysts believe these stocks can deliver healthy returns over the next few weeks.
JB Chemicals & Pharmaceuticals | But at Rs 2,100-2,066 | Target Rs 2,340-2,390 | Stop Loss Rs 950
On the weekly time frame the stock was consolidating in the Rs 2,070-1,750 level. This past week, it broke above the consolidation range with a strong bullish candle. The weekly Bollinger Band generated ‘Buy’ signal, as stock closed above the upper the Bollinger Band. This breakout is accompanied with rising volume, which normally dried up during the consolidation pattern. The weekly strength indicator RSI is in holding above a reading of 50-mark and its reference line indicates positive momentum. The analysis indicates an upside towards Rs 2,340-2,390 for the stock. The holding period is 3-4 weeks.
(Rajesh Palviya, head of technical & derivative research at Axis Securities)
ACC | Buy at Rs 2,460 | Target Rs 2,540 | Stop Loss Rs 2,420
The stock price has been testing the falling trend line resistance and consolidating in a narrow range. While testing the resistance or downward-sloping trend line, the stock price has taken support at the 50-day MA. Earlier, it formed a base for itself near 2200 levels while taking support near 200-day MA and thereafter gradually moved up higher. Currently, the stock price is comfortably moving above the 50-day, 100-day, and 200-day moving averages, which indicates that the underlying trend of the stock is bullish. Thus, current levels are attractive to buy with a favourable risk-reward ratio.
(Foram Chheda, CMT, Technical Research Analyst and founder at chartanalytics.co.in)
Alicon Castalloy | Buy Range: Rs 1,060-1,040 | Target Rs 1,210-12,50 | Stop loss Rs 968
Alicon Castalloy has decisively broken out above multiple resistances on the weekly time frame, which were placed in the 1,000-1,020 range. The stock has broken out with a strong bullish candle, indicating a positive trend. The breakout is accompanied with an increase in volume confirming participation at breakout level. The daily and weekly strength indicator RSI is in bullish mode and weekly RSI holding above its reference line, which indicate positive momentum. The analysis indicates an upside towards Rs 1,210-1250 levels. The holding period is 3-4 weeks.
(Rajesh Palviya, head of technical & derivative research at Axis Securities)
HEG | Buy in Rs 1,045-1,062 range | Target Rs 1,138 | Stop Loss : Rs 1,008
The share price of HEG has generated a breakout above a falling channel containing last three months decline signalling end of corrective phase and resumption of the up move thus offers fresh entry opportunity. The breakout is supported by strong volume of more than five times its 50 days average volume of 2 lakhs share per day, highlighting larger participation at the breakout area.
The stock may maintain positive bias and head towards Rs 1,138 level in the coming weeks, which is being the 50 per cent retracement of the August-November decline of Rs 1,378-956. Among the oscillators the daily 14-period RSI in seen rebounding from the oversold territory and is seen sustaining above its nine periods average, thus validates positive bias. The holding period is two weeks.
(ICICIdirect)
IIFL Finance | Buy in Rs 445-437 range | Target Rs 505-535 | Stop Loss 410
On the weekly time frame the stock has decisively broken out above multiple-year high from 2018, which is placed at Rs 418 level. The breakout is accompanied with an increase in volume, confirming participation at breakout level. The stock is well-placed above 20-, 50-, 100- and 200-day averages, indicating positive momentum. The weekly strength indicator RSI is holding above a reading of 50-mark and its reference line indicates positive momentum. The analysis indicates an upside of Rs 505-525 levels. The holding period is 3-4 weeks.
(Rajesh Palviya, head of technical & derivative research at Axis Securities)
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