The BSE Sensex and NSE Nifty gained a percentage point last week on fresh buying mainly in banking sector buoyed by the passage of Bankruptcy Bill by the government in Parliament despite rise in inflation. On Monday (May 16), the 30-share index gained further 164 points to close at 25,653.23 as investors ignored a spurt in wholesale inflation as well as forecast of a monsoon delay and went for value-buying in FMCG and IT stocks. The NSE Nifty ended 45.85 points or 0.59 per cent higher at 7,860.75.
Market experts are bullish on Indian equity markets. Global brokerage major HSBC has upgraded Indian equity markets to ‘neutral’, saying ‘green shoots’ are emerging and has increased its Sensex target for the year to 26,000 from 25,000.
Karthik Rangappa, VP, education services, Zerodha, said, “We continue to maintain a bullish on the market. The earning season is holding up and there are no major negative sentiments with regard to corporate earnings. We expect this sentiment to carry forward over the next few weeks and therefore expect markets to move at least 50 points beyond 8,000. On the downside, we expect the immediate support at 7,750 to hold over the next few trading sessions.”
With the help of technical analysts we collate a list of 10 stocks which you can buy for a period of 15-20 days.
Rohit Gadia, founder and chief executive officer, CapitalVia Global Research
Power Grid: The stock recently gave breakout of the head and shoulder reversal pattern in its intraday chart and is managing to trade above the same, on daily charts the stock has formed multiple bottom around Rs 140-142 which being a 50 percent retracement level of the movement, it has started since last month providing indication of a potential trend reversal. It is consolidating below the resistance mark of Rs 145 and is likely to continue the upside movement with the crossing of the mentioned level, where one may get the target of Rs 152 in the stock, trade with the stop loss of Rs 142.
Tata Chemicals: The stock is in strong uptrend in its daily chart and after short-term correction it seems that the stock is resuming its on-going uptrend. It is consolidating with the positive bias below the resistance mark of Rs 421. It may show upside movement if it crosses Rs 421 and manages to stay above the immediate support of Rs 410. Further it is trading continually above its 50-Day moving average in its daily chart. One may initiate long position in the stock for the target of Rs 435, with the stop loss of Rs 410.
Hindustan Petroleum: Overall trend of stock is bullish and is consolidating near the resistance mark of Rs 843 from last few trading sessions. It is moving above its 200 days moving average with RSI of 53. We expect it to show recovery after crossing the resistance mark, where stock may test Rs 874 with stop loss of Rs 812.
Chandan Taparia, derivatives and technical analyst, equity research, Anand Rathi Financial Services
Apollo Hospital: It made multiple bottom near Rs 1,290 and started to move after the profit-booking decline of last two months. Major trend is positive and recent decline is giving an opportunity to trade the stock for higher targets. The stock can touch Rs 1,420.
Havells India: Moving very strong and momentum may take it towards Rs 385-390. Making higher top–higher bottom and trading at uncharted territory.
Arvind: Made string base and now medium term trend is shifting on bulls side and holding above Rs 300 may take it to Rs 325.
Sun TV: Sun TV shares are available at attractive valuations. They can touch Rs 445 in the next 10-15 days.
Karthik Rangappa, VP, Education Services, Zerodha
Elgi Equipments: The stock is forming a flag formation, which according to the charts is a bullish signal. On could take a punt and go long on the stock especially considering the fact that the results are due on May 27, and there could be a run up in the stock. The stock can touch Rs 161.
Dr Reddy’s Laboratories: The stock has formed a triple bottom at around Rs 2,875 and consolidated at these levels. The stock has been continuously bought at lower levels, giving us a sense that the stock is primed up for a breakout over the next few trading session. One can buy the stock at present level, keeping Rs 2,870 as stop loss for a target price of Rs 2,905.
Federal Bank: Federal Bank is one of the better-managed private sector bank. The stock is trading at a short-term support at Rs 49. Besides, the stock has just crossed over the 100- day moving average. The volumes too are on the higher side. We expect the momentum to continue and the stock to hit Rs 53 over the next few trading session.