9 stocks that analysts say can give you solid returns in 2-3 weeks
Analysts say the rally could be even bigger if the results come in sync with these predictions.
The strong prospects of a stable government at the Centre gave a shot in the arm to the market even though it had been partly discounted earlier. Analysts say the rally could be even bigger if the results come in sync with these predictions.
"Most exit polls have predicted NDA to win the Lok Sabha elections with a good margin. This was partly discounted by the market over the past few days. The Street would like it even more if the BJP on its own gets a majority in the Lok Sabha. The fact that NDA may be able to attain the majority in Rajya Sabha only in 2020 or 2021 is a minor dampener as major reforms would need passage in both Houses," said Deepak Jasani, Head of Retail Research, HDFC securities.
How to proceed in such a market? Don't get carried away, say analysts. In such a market, well-planned, prudent moves can maximise your gains.
Based on various brokerage recommendations, here is a list of 9 stocks that analysts say, look technically sound to deliver strong gains in the next two to three weeks. Take a look.
Vinay Rajani, Technical Analyst, HDFC securities
State Bank of India | Buy | Target price: Rs 350 | Stop loss: Rs 305
This stock has witnessed a bullish flag pattern breakout on the daily charts. It has been sustaining above all important moving averages. Indicators and Oscillator setup are bullish. "Considering the technical evidence discussed above, we recommend buying the stock at the current market price for the target of 350, keeping a stop loss at 305 on the closing basis," said Rajani.
UltraTech Cement | Buy | Target price: Rs 5,000 | Stop loss: Rs 4,200
This stock has registered a new all-time high at Rs 4,687 in the month of April 2019. Recently, the stock witnessed a running correction and now it seems to have resumed its primary uptrend. Moving average and Oscillator setup is bullish.
Tata Motors | Buy | Target price: Rs 192 | Stop loss: Rs 167
This stock recently witnessed a sharp cut of 30 per cent from the April 2019 high and has reached the oversold zone. Bullish 'Harami' candlestick pattern is observed on the daily charts. It has also formed a bullish double bottom formation at Rs 167.5 odd levels. "Considering the technical evidence discussed above, we recommend buying the stock at the current market price for the target of Rs 192, keeping a stop loss at Rs 167 on the closing basis," said Rajani.
Vaishali Parekh, Senior Technical Analyst, Prabhudas Lilladher
Nestle India | Buy | Target price: Rs 11,250 | Stop loss: Rs 10,100
This stock has witnessed a short correction in recent times to bottom out around Rs 10,150 and has indicated a positive candle to signify strength. The RSI also has shown a trend reversal to signal a buy. "With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 11,250, keeping a stop loss of Rs 10,100," said Parekh.
Berger Paints | Buy | Target price: Rs 330 | Stop loss: Rs 285
This stock has seen a correction from the levels of Rs 335 to show signs of bottoming out near Rs 290. It has almost formed a double-bottom formation pattern on the daily chart to imply a strong support base. The currently indicated positive candle has signified strength and has the potential to carry the stock upward in the coming days.
Jay Thakkar, CMT, AVP Equity Research, Anand Rathi Shares and Stock Brokers
Hero MotoCorp | Buy | Target price: Rs 2,850 | Stop loss: Rs 2,575
This stock has formed a falling wedge pattern which is a bullish reversal pattern. The daily, as well as an hourly momentum indicator, MACD has come well into buy mode with a positive divergence.
Tata Global Beverages | Buy | Target price: Rs 257 | Stop loss: Rs 224
This stock has provided a breakout from an inverse head and shoulders pattern which is a bullish reversal pattern. The daily MACD has come well into the buy mode which is the confirmation of an upside.
Rajesh Bhosale, Technical Analyst, Angel Broking
Hindustan Unilever | Buy | Target price: Rs 1,835 | Stop loss: Rs 1,680
On the daily chart, after forming a base around the previous bottom of Rs 1,660, this stock has confirmed a bullish range breakout. In addition, stock prices have closed above all the major moving averages such as 20, 50, 200-SMAs on a single day, suggesting a strong momentum up move after a period of consolidation. The above-said breakout is witnessed with increasing volumes supporting the positive bias.
ICICI Lombard General Insurance Company | Buy | Target price: Rs 1,218 | Stop loss: Rs 1,064
In spite of the recent turmoil in the broader markets, this stock has been an outperformer by continuously moving in a higher top higher bottom price formation. On the daily chart, after consolidation and witnessing resistance around Rs 1,110 three times in a month, the stock price has finally broken above the barrier to confirm the continuation of the uptrend. In addition, momentum oscillator RSI, after a minor dip, has again turned up confirming a bullish crossover with its smoothened moving average.
( 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.)