ET Markets
12,248.2567.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

10 top stock ideas that analysts say can deliver solid returns in near term

The 50-share index lost 135 points, or 1.12 per cent, for the week to end at 11,921.

, ETMarkets.com|
Updated: Dec 09, 2019, 12.24 PM IST
0Comments
Getty Images
Money---Getty-2
Based on various brokerage recommendations, here are 10 stock ideas that, they say, can potentially deliver solid gains in 14-24 sessions.
Nifty settled below the crucial 11,950 mark last week, amid a selloff in select bluechips after the Reserve Bank of India slashed GDP growth forecast for FY20 and refused to deliver another rate cut. The 50-share index lost 135 points, or 1.12 per cent, for the week to end at 11,921.

Vaishali Parekh, Senior Technical Analyst at Prabhudas Lilladher, says further selling is likely from here on. “We suggest a cautious view. The support for Bank Nifty this week is seen at 39,770 and for Nifty at 11,700, while resistance is seen near 41,100 and 12,140 levels, respectively,” she said.

Yet, the momentum is building up across select counters. And analysts said investors and traders who can spot the right stocks will make money even if the market goes into a timewise correction.

Based on various brokerage recommendations, here are 10 stock ideas that, they say, can potentially deliver solid gains in 14-24 sessions.

Recommendations by: Mazhar Mohammad, Chief Strategist–Technical Research & Trading Advisory, ChartviewIndia

Century Textiles | Buy | Target price: Rs 540 | Stop loss: Rs 465
This counter appears to have registered a clean breakout above its interim top at Rs 470 on the weekly chart. In the past, this counter faced significant resistance around Rs 470 level, which can be due to excessive supply emanating from the bearish gap zone at Rs 464-458 registered on May 25, 2018, on the weekly charts. With the current breakout, the entire supplies from this zone appear to have been absorbed. Ideally, this counter should head much higher. Positional traders can buy it for a target of Rs 540 with a stop below at Rs 465 on a closing basis.

EID Parry | Buy | Target price: Rs 220 | Stop loss: Rs 175
After the recent price and volume breakout, this counter has retraced 62 per cent of its last leg of rally from the low of Rs 161-203, and appears to have resumed its up-move once again from the recent bottom at Rs 177. Hence, if it sustains above the Rs 177 level, this counter shall eventually head towards its logical target at Rs 225. Positional traders are advised to adopt a two-pronged strategy to buy on dips in the Rs 184-177 zone and look for a target of Rs 220. The stop loss for this trade is suggested on a close below Rs 175 level.

Colgate Palmolive | Buy | Target price: Rs 1,597 | Stop loss: Rs 1,639
This counter appears to have formed a decent base around Rs 1,440 level after retracing 50 per cent of its last leg of upswing from the lows of Rs 1,227-1,642. Last Friday’s strong up-move with a close above its nine-day exponential moving average, which suppressed pullback attempts, is signalling that this counter has resumed its uptrend. If it sustains above the Rs 1,440 level, this stock should ideally head towards Rs 1,601 mark. Positional traders are advised to buy this stock with a target of Rs 1,597. The stop loss for this trade is suggested on a close below Rs 1,639.

Vaishali Parekh, Senior Technical Analyst, Prabhudas Lilladher

Ceat | Buy | Target price: Rs 1,050 | Stop loss: Rs 920
This stock has witnessed a gradual correction from the peak of Rs 1,037 and made a bottom near Rs 910 level. It has indicated a bounceback with a bullish candle pattern on the daily chart. The chart looks attractive and with the bias turning positive, Prabhudas Lilladher anticipates further upside on the counter in the coming days. The RSI has also indicated a trend reversal.

Rajesh Bhosale, Technical Analyst, Angel Broking

Tata Elxsi | Buy | Target price: Rs 950 | Stop loss: Rs 795
The sharp run seen on the counter in October from Rs 610 level to Rs 839 sent the oscillators into the deep overbought territory. Subsequently, the stock went into a consolidation phase in November, digesting the gains of October. It started December on a positive note, breaking above the October highs and confirming resumption of the recent uptrend. Volume analysis shows low volume during consolidation compared with high volume during breakouts. In addition, key averages, as well as oscillators, are placed in positive zone supporting the ‘buy’ call.

Kotak Mahindra Bank | Buy | Target price: Rs 1,750 | Stop loss: Rs 1,630
After consolidating in a broad range between Rs 1,540 and Rs 1,640 in last two months, the stock finally broke the range on the upside to confirm a rectangular channel bullish breakout. On Friday, when the broader market witnessed a selloff, this counter saw a bullish breakout with an increase in volume, which indicated strong inner strength. In addition, prices have closed above the higher range of the Bollinger Band, suggesting a strong trending up-move in the near term post recent sideways consolidation.

L&T | Buy | Target price: Rs 1, 350 | Stop loss: Rs 1,260
This stock has not participated in the current bull run and has now reached its long-term support zone in the Rs 1,280-1,290 zone. In the recent past, this zone has seen strong demand resulting in a strong bounceback. In May, the stock rallied from Rs 1,290-1,586 levels and in September from Rs 1,290-1,550 levels. With the prices reaching the demand zone and the oscillators placed in the oversold zone, the scrip is witnessing a bullish reversal pattern on the daily chart, known as ‘Stick Sandwich’, which hints at a possible strong bounceback in the near term. Looking at the favourable risk-reward ratio, Angel Broking recommends buying this stock at current levels for a price target of Rs 1,350 over the next 14 sessions. The stop loss has been suggested at 1,260.

Aditya Agarwala, Senior Manager, Technical Analysis, YES Securities

Navin Fluorine International | Buy | Target price: Rs 930/970 | Stop loss: Rs 850
On the weekly chart, Navin Fluorine International has taken support at the previous peak from which it had broken out decisively on higher volumes. Further, a sustained trade beyond Rs 895 level will take it higher to Rs 930-970 levels. On the daily chart, RSI has formed a positive reversal with respect to price, which confirms the strong bullish trend dominant on the counter. Moreover, the stock price continues to make higher highs and lows, confirming the bullish trend.

Mustafa Nadeem, CEO, Epic Research

Tata Consultancy Services | Buy | Target price: Rs 2,210-2,270 | Stop loss: Rs 2,075
A bullish continuation pattern breakout was seen in Tata Consultancy Services (TCS) with the prices coming out its overall downward move formation in November series. Prices have performed well since mid-October, and a recent breakout from its correction is a bullish signal. “The stock is looking attractive at lower levels at Rs 2,100-2,120 and upside can be seen towards Rs 2,210- 2,270 in the short term. Stop loss for the trade is recommended at Rs 2,075,” Nadeem said.

Reliance Securities

Bata India | Buy | Target price: Rs 1,860 | Stop loss: Rs 1,610
Due to recent recovery in the stock, its major technical indicators reversed from their lower levels and have given positive crossover. As per the current set-up, Reliance Securities believes the stock will continue its undergoing positive momentum and will record new high. On the higher side, the stock will face major hurdle around Rs 1,860 level, which coincides with its prior highs connecting upward slopping trend line. In case of any decline, its lower level of prior base formation will work as a strong support point for stock.

(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.)

Also Read

Ready to play 20-20? 12 stocks analysts are betting on for solid returns in New Year

12 money-making ideas that can deliver solid returns in 4 weeks

YES Bank, Biocon, HDFC AMC, Voltas among 12 buy ideas that analysts say can give solid returns

Best of both worlds: Blend growth & value investing for solid returns

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service