Domestic equity markets are back in green on Monday, tracking the firm global cues. Analysts tracking the technical charts suggest that select stocks are likely to deliver handsome returns in the near term and see opportunities on both sides. Here are select stocks that one can see for short term returns:
| HDFC Life Insurance Company | Buy | Target Price: Rs 652-675 | Stop Loss: Rs 558 |
HDFC Life on the weekly chart has decisively broken out above the ‘Symmetrical Triangular pattern’ with strong bullish candle. The breakout is accompanied with an increase in volume confirming participation at breakout level. The stock is forming a higher high-low on the daily chart. This formation indicates a positive uptrend. The weekly strength indicator RSI is in bullish mode and weekly RSI holding above its reference line and 50 level mark which indicates positive momentum. The above analysis indicates an upside of Rs 652-675 levels.
Recommended by: Axis Securities
| Power Finance Corporation | Buy | Target Price: Rs 168-172 | Stop Loss: Rs 142 |
PFC on the weekly chart has decisively broken out above the ‘cup and handle pattern’. The breakout for the same was placed at Rs 148. Stock had also broken out above the ‘multiple resistance zone’ placed between Rs 154-152 levels. Stock is well placed above 20, 50, 100 and 200 key 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 above analysis indicates an upside of Rs 168-172 levels.
Recommended by: Axis Securities
| Balkrishna Industries | Buy | Target Price: Rs 2,400-2,450 | Stop Loss: Rs 2,040 |
Balkrishna Industries on the weekly chart has decisively broken out above the ‘symmetrical Triangular pattern’. The breakout is accompanied with an increase in volume confirming participation at breakout level. Stock is well placed above 20, 50, 100 and 200 key averages indicating positive momentum. The weekly strength indicator RSI is holding above its reference line indicates positive momentum. The above analysis indicates an upside of Rs 2,400-2,450 levels.
Recommended by: Axis Securities
| HG Infra Engineering | Buy | Target Price: Rs 726-750 | Stop Loss: Rs 610 |
HG Infra on the weekly chart has decisively broken out above the ‘consolidation zone’ placed between Rs 655-508. Stock is holding above 50 per cent Fibonacci retracement of a rally 126-830 which is placed at 478 forming a medium-term support zone. The breakout is accompanied with an increase in volume confirming participation at breakout level. The weekly strength indicator RSI is in bullish mode above its reference line. RSI was also consolidating between a range and broken out of range. The above analysis indicates an upside of Rs 726-750 levels.
Recommended by: Axis Securities
| AIA Engineering | Sell | Target Price: Rs 2,410 | Stop Loss: Rs 2,626 |
Over the past many weeks, the stock price has seen a formation of a complex head and shoulders. Thus, a breakdown can trigger a potential down move in the stock by close to 5.78 per cent. The stock price is very close to the neckline forming a long bearish candlestick. This price set-up adds to the bearishness in the stock. Following this price move, the stock price is moving below the 50-day MA and 100-day MA which indicates that the near-term trend of the stock is bearish. The price move was accompanied by an increase in volume. The Relative Strength Index (RSI) has also breached the horizontal trendline support which indicates further weakness in the stock. Thus, a pattern of complex head and shoulders, RSI breaching from the horizontal trendline, an increase in volume, and price moving below multiple moving averages lay the ground for a possible decline in the price. Any price move above Rs 2,626 can be considered to move out of the stock.
Recommended by: Foram M. Chheda, Founder, ChartAnalytics.co.in
| Power Finance Corporation | Buy | Target Price: Rs 175 |
The stock has generated a breakout above the falling supply line joining the highs of Nov 2011 and April 2017 signaling resumption of up move and offers fresh entry opportunity. The breakout is supported by a strong volume of signaling larger participation at the breakout area. The weekly MACD is in a strong up trend and is trading well above the zero line thus validating positive bias. Hence one can expect the stock to maintain positive bias and head towards Rs 175 levels as it happens to be the 138.2 per cent external retracement of the recent breather.
Recommended by: Ashika Group
| ZF Commercial Vehicle Control Systems India | Buy | Target Price: Rs 10,100 |
In the recent period the stock witnessed an intermittent correction towards the previous swing high of Rs 8,650. Now the resistance turned support level of Rs 8,650 is likely to provide the necessary cushion an elevated base might be in place. On the oscillator front too the daily 14 periods RSI has generated a buy signal moving above its nine periods average thus validating positive bias. Hence one can expect the stock to head towards Rs 10100 in near term as it happens to be the 61.8 per cent retracement of the entire fall since October 22 onward.
Recommended by: Ashika Group
(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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