10 stock strategies to make money by coming Christmas
Here are 10 stock strategies that can potentially deliver solid gains over the next 3-4 weeks.
The wealth erosion would have been much more but for brisk buying that emerged in the last two sessions, which capped the downfall. After falling 203 points during the first three trading sessions of the week, the Nifty recovered 165 points in last two sessions.
However, BSE benchmark Sensex gained 0.08 per cent to 33,342 from 33,314 during the week.
Nifty saw a strong bounceback. However for the confirmation and continuation of the upmove, it is essential for the index to move past 10,350 and 10,380 levels decisively. Support for the coming week will be at 10,120 and resistance at 10,450, said Vaishali Parekh, Head of Technical Desk, Prabhudas Lilladher.
Based on various brokerage recommendations, here are 10 stock strategies that can potentially deliver solid gains over the next 3-4 weeks.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Bajaj Finserv | Buy | Target price: Rs 5,370 | Stop loss: Rs 4,845
For past three weeks, this counter moved in an extremely narrow range and appeared to have made a decent base around the Rs 4,850 level before recording a breakout above its two-month-old downsloping trendline in last session. With this strength, it should ideally target the Rs 5,370 level. Hence traders should buy into this counter with a stop of Rs 4,845, said Mohammad.
HPCL | Buy | Target price: Rs 454 | Stop loss: Rs 403
After the recent correction from the high of Rs 484, this counter appears to be stabilising around the Rs 400 level and positioning itself for a rally. Once it manages to push itself above Rs 424, the move can be swift as it should confirm bottom at recent low of Rs 406. Hence positional traders are advised to go long with a stop of Rs 403 for a target of Rs 454, said Mohammad.
Gajendra Prabu, Technical Research Analyst, HDFC Securities
LIC Housing Finance | Buy | Target price: Rs 651 | Stop loss: Rs 572
This stock has formed a strong bull candle on both daily and weekly charts which indicates bulls are resuming their momentum. The price has completed a major ‘impulse formation’ in larger degree from Rs 794 to 573 level, which was a five-wave decline and also in the minor degree a Faster Upward retracement has been witnessed from Rs 573 to 608 levels. So now the price is set for a new bullish leg or larger upward retracement of last major falling leg. The stock has started forming higher tops and higher bottoms on the intraday chart, which is an initial bullish continuation structure. Earlier down trend has ended at the low of Rs 573 and the stock has begun its short term uptrend by closing above the 20-day EMA. In addition, the RSI oscillator is placed with strong positive divergence. Traders may look to buy the stock at current market price (CMP) and add in dips to Rs 590 for the upside target of Rs 651 over the next 2-3 weeks. Place a stop loss at Rs 572, said Mohammad.
Godfrey Phillips | Buy | Target price: Rs 1190 | Stop loss: Rs 975
This stock has been forming “contracting triangle pattern” in larger degree, price has completed its last falling leg i.e. “wave e” at the low of Rs 830. Price has started to bounce from the lows of Rs 830 and managed to close above the key moving average of 21 Day and 50 Day EMA. In addition, the stock has been forming “Inverted Head & Shoulder” pattern in smaller degree and price is on the verge of breakout, level is placed at the Rs 1,060 level. The price has started moving out of the consolidation phase and showing positive momentum. The oscillators are placed with a bullish tone, which adds strength to the bulls to perform in forthcoming days. “Buying can be initiated at CMP and added in dips to Rs 990 for the upside target of Rs 1,190 over the next 2-3 weeks. Place a stop loss at Rs 975,” said Mohammad.
Milan Vaishnav, Technical Analyst, Gemstone Equity Research and Advisory
GIC Housing Finance | Buy | Target price: Rs 480 | Stop loss: Rs 420
The daily MACD is sharply moving towards a positive crossover. The RSI just crossed above 30 from a bottoming formation which is bullish. The weekly chart has seen creation of a Classical Hammer following a decline which is also a bullish sign. Some technical pullback in this stock and an attempt to reverse the trend cannot be ruled out over coming days, said Vaishnav.
Can Fin Home | Buy | Target price: Rs 505 | Stop loss: Rs 460
This stock has successfully formed base around the Rs 430-460 zone over the past few days. On the daily chart, the RSI has just crossed above 30 from a bottoming out formation which is bullish. A Rising Window has emerged which usually implies follow up rally to continue. The emergence of a Classical Hammer on the weekly chart further indicates resilient behaviour of this stock over coming days, said Vaishnav.
Siemens | Buy | Target price: Rs 1,230 | Stop loss: Rs 1,170
Multiple signals have emerged on the charts which indicate likely upward revision of prices over coming days. A bullish candle has emerged after a buy signal over Stochastic with a bullish divergence against the price. RSI has taken a classical pattern support and now looks to inch upward. The daily MACD is set to report positive crossover in coming days. Some technical pullback can be strongly expected over coming days, said Vaishnav.
Vikas Jain, Senior Research Analyst, Reliance Securities
Balrampur Chini Mills | Buy | Target price: Rs 175-180 | Stop loss: Rs 154
This stock has reversed after taking support of its long-term moving average 200-day SMA and rose to five-day closing high. “A positive crossover in the key technical indicators are signalling that the stock is on a verge of turnaround, where recovery in MACD is also coinciding with our view,” said Jain.
Max Financial Services | Target price: Rs 650-680 | Stop loss: Rs 540
This stock has formed a Double Bottom pattern around Rs 540 and then managed to recover prior weekly losses. A rise in Stochastic post positive cross-over and reversal on RSI from its bull market support zone is indicating strength in the stock. “The stock may surpass the near-term hurdles of moving averages and will climb to higher levels,” said Jain.
Vaishali Parekh, Head of Technical Desk, Prabhudas Lilladher
DHFL | Buy | Target price: Rs 685 | Stop loss: Rs 605
This stock has more or less formed a higher bottom formation pattern in the daily chart indicating a positive bias from here on and we anticipate it to give a breakout above the previous high of Rs 679 level and scale new heights. Indicators like RSI have also shown a trend reversal, and triggered a positive rise in the stock. “With decent volume participation and promising factors supporting our view, we recommend a buy in this stock for an upside target of Rs 685 keeping a stop loss of Rs 605 level,” said Jain.
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)