Experts see some pause or profit taking in the coming sessions and suggest using it as an opportunity to enter or add to existing trades.
The benchmark BSE Sensex gained for the fifth consecutive day on Monday on account of good set of quarterly numbers. The 30-share index surged nearly 1,500 points, or 6 per cent, to 26,725.60 on May 30 from 25230.36 on May 23. A positive forecast about an above-normal monsoon this year further supported domestic equity markets during the period.
Barring Cipla (down 4.77 per cent), rest all other stocks in Sensex surged upto 20 per cent in the past five trading sessions with Larsen & Toubro and State Bank of India gaining 19.79 per cent and 17.58 per cent, respectively. Other blue chips such as ICICI Bank, Tata Motors, Bajaj Auto and Hero MotoCorp also gained 10.75 per cent, 9.88 per cent, 7.94 per cent and 7.28 per cent, respectively, in the past five trading sessions.
On upcoming trading sessions, Jayant Manglik, president, retail distribution, Religare Securities said, “We might see some pause or profit taking in the coming sessions and suggest using it as an opportunity to enter or add to existing trades.” Sensex was trading 42 points down in the afternoon trade on Tuesday (at 12.34 pm).
Below are 10 stocks on which technical market experts are looking bullish till June 15.
Recommended By: Venu Madhav, chief operation officer, Zerodha
1. ITC: ITC’s broken short term resistance levels at Rs 336 with good volumes and since then has seen some strong upward momentum and we believe the momentum will continue for a few more trading sessions. We expect the rally to continue to Rs 390 levels if intermediate level of Rs 360 gets broken on the upside.
2. Yes Bank: We are bullish on Yes Bank which has seen a fair amount of breakthrough. We expect the rally to continue and the stock to test Rs 1,090.
3. Bajaj Auto: Bajaj Auto has posted good results with a steady increase in year on year (YOY) numbers. Having managed to take the support of the 200 DMA and closed above it, we recommend holding it with targets at around Rs 2,605.
4. ACC: The stock has broken the long term downside trend and has moved upwards and seen consolidation since then. The chart patterns have formed a double bottom which leads significant room for further upside movement which can take the stock upto Rs 1,550.
5. Info Edge: The stock has formed a flag formation which indicates bullishness and provides a buying opportunity. Investors could go long on the stock with a target of Rs 850.
Mustafa Nadeem, CEO, Epic Research
1. Kwality: Kwality is making a falling wedge pattern on the daily chart as it consolidates after a recent run up from 2 digit to 3 digits. The stock is finding a base support at Rs 107 odd levels with a 200 Days Moving Average as well at Rs 103 levels. The volume has started to dry up which is signalling that bulls may take charge anytime of the trend of the stock. We have seen a Doji pattern on Monday as it reversed from 200 Days moving average. All this confluence of level makes it imminent for target of Rs 125 in short term with a low risk of Rs 100 as Stop Loss.
2. Inox Wind: Inox Wind is in overall price range of Rs 300 on upside to Rs 210 on downside the stock on current levels is in oversold territory while we have seen “Harami Pattern” being formed which is a bullish reversal signal. The candle displays the bulls have started taking entry at lower levels while risk reward is also attractive at current levels. The stock can target Rs 260 from here while Stop Loss comes at Rs 211.
3. PC Jeweller: PC Jeweller is a swing pay with stock a price reversal zone resisted by upward resistance line at Rs 370.
4. Eros International: Eros is a bottom reversal play with stock making a base formation at Rs 180- 190 odd levels . The stock after a downward is now likely to resume in a positive momentum on the back of lower levels buying. What’s important on chart is at lower levels we have witnessed contraction of 55 and 100 days moving average positive crossover indicating a bullish signal. We have set price target of Rs 223 with Stop Loss at Rs 175.
5. Emami: The stock is in overall positive momentum making higher tops and higher bottoms on the daily chart with price pattern indicating broadening highs. Firstly, the stock on Monday made a bullish reversal pattern with better volumes. Secondly, we have positive crossover of 55 days and 100 days moving averages generating a buy signal at current levels with small risk. Last but not the least, it is supported by lower support trendline which is acting as support since early 2016 comes at Rs 1010. All this confluence level indicates buy towards target of Rs 1,230 with stop loss of Rs 987.