Domestic brokerage firms including SMC Global and Ashika Stock Broking are positive on select largecap stocks across the various sectors, despite the volatility in the broader markets. Analysts expect up to 14 per cent in these stocks.
The brokerage firms have picked up counters including Mahanagar Gas (MGL), Indian Energy Exchange (IEX), Tech Mahindra and DLF as their top picks for the week. Here’s what analysts said about these counters:
Mahanagar Gas | Buy | Target Price: Rs 1,100-1,120 | Stop Loss: Rs 910 | Upside Potential: 14%
Few sessions back, Mahanagar Gas (MGL) has given a fresh breakout above the ascending triangle pattern, visible on weekly charts. The breakout was observed with rising volumes as the stock made its 52-week high of Rs 1,006.65. However, since then some consolidation has been seen in prices as stock has been fluctuating in range of Rs 965-1,005 levels. Last week once again bulls made a comeback, as stock has given a breakout above ‘Bullish Flag Pattern’ on short term charts. We expect momentum to continue in the stock, towards north as breakout above continuation pattern has been observed. Therefore, one can buy stock in the range of Rs 980-985 levels for the upside target of Rs 1,100-1,120 levels with stop loss below Rs 910 levels.Recommended by: SMC Global
Tech Mahindra | Buy | Target Price: Rs 1,265 | Upside Potential: 12%
The change in leadership could be positive for Tech Mahindra as it would help in turning around the company’s performance which currently lags the peers. Tech Mahindra after last one year of corrective decline has witnessed buying demand scaling past the 100-days EMA and the 61.8 per cent retracement of April 2020-December 2021 up move (Rs 471-1,838). Thus, it offers a fresh entry opportunity with a favorable risk reward set up. Among the oscillators the daily stochastic is rebounding from oversold territory thus supporting positive bias. Hence one can expect the stock to continue with its positive momentum and head towards Rs 1,265 levels in the coming weeks, being the 38.2 per cent retracement of recent breather.Recommended by: Ashika Stock Brokers
Indian Energy Exchange | Buy | Target Price: Rs 170-172 | Stop Loss: Rs 138 | Upside Potential: 14%
Indian Energy Exchange made a smart recovery from its lows and bounced back once again to regain a momentum towards north with formation of a rising channel on daily charts. Last week, the stock witnessed good volumes with a rise in price, which suggests some long build up into the stock. Technically, the stock is on the verge of getting fresh momentum above its 200 days exponential moving average on a daily interval. The positive divergences on secondary oscillators with rise in prices suggests the next round of upside momentum into the stock. Therefore, one can buy stock in the range of Rs 150-152 levels for the upside target of Rs 170-172 levels with stop loss below Rs 138 levels.Recommended by: SMC Global
DLF | Buy | Target Price: Rs 425 | Upside Potential: 14%
DLF after last 1.5 years of shallow corrective decline, is currently placed at key supports offering fresh entry opportunity. The stock remains constructive on as it is seen rebounding after a base formation around the 100-week EMA thus offers a favorable risk reward set up. Luxury housing is booming in India. A record 65,700 luxury housing units were sold last year, thanks to rising disposable incomes and a surge in demand after the covid-19 pandemic. The weekly stochastic has generated buy signal moving above its three periods average thus validating positive bias. Hence one can expect the stock to resume up move and head towards Rs 425 levels in the coming sessions as it happens to be the swing high of December 2022.Recommended by: Ashika Stock Brokers
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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