L&T, Voltas, HCL Tech among 12 money-making ideas that can deliver good gains in the short term

Mumbai: Equity benchmark Sensex and Nifty rose 3.07 per cent and 3.20 per cent, respectively, last week and posted their best weekly performance since May 26, buoyed by gains in global markets an hopes of progress in the US-China trade talks and a possible deal on Brexit. Financials led the gains in the last week.

Indian markets are closed on Monday for the state elections in Maharashtra.

According to Nagaraj Shetti, technical research analyst, HDFC securities, Nifty’s near-term trend looks positive. The index is expected to encounter key overhead resistance around 11,800-850 zone in the next couple of weeks . “There is a higher possibility of downward corrections from the highs,” he said.

Based on various brokerage recommendations, here are 12 stock strategies that can potentially deliver gains over the next few weeks.

Vaishali Parekh, Senior Technical Analyst, Prabhudas Lilladher

Larsen & Toubro | Buy | Target price Rs 1,580 | Stop loss Rs 1,390

This stock has indicated the formation of a higher bottom in the daily chart taking support near the 200DMA level at Rs 1, 390 and has improved the bias with a pullback to show strength and has potential to rise further upside in the coming days. The RSI has been maintained positive and decent volume participation was witnessed.

Havells | Buy | Target price Rs 740 | Stop loss Rs 660

This stock has taken support at the ascending trendline at Rs 650 level and picked up momentum with positive bias to imply strength and anticipate further rise in the stock. The RSI also indicated a trend reversal to give a buy signal.

Jay Thakkar, Head of Technicals and Derivatives, Anand Rathi Shares and Stock Brokers

Bajaj Finserv | Buy | Target price Rs 8,550 | Stop loss Rs 8,100

This stock has seen a breakout from the downtrend line resistance with a clear buy crossover in its momentum indicators on the weekly charts. With this breakout the Wave 4 on the daily charts seems to have got over and Wave 5 up seems to have started.

Bata | Buy | Target price Rs 1,853| Stop loss Rs ,1733

This stock has provided a breakout from the falling channel formed in its wave 4 on the daily charts. The momentum indicator MACD is well in the buy mode at all the degrees.

Voltas | Buy | Target price Rs 721 | Stop loss Rs 676

This stock has provided a breakout from the larger accumulation which was in a symmetrical triangular pattern. It has also completed the retest of the same and it has again started to form higher tops and bottoms. It has recently provided a breakout from the falling channel.

Ajit Mishra, VP Research, Religare Broking

HCL Technologies| Buy| Target price Rs 1,150| Stop loss Rs 1,060

HCL Tech has been trading in the uptrend trending channel on the weekly chart and recently tested the lower band of the same. It is gradually rebounding now while holding firmly above the support of multiple moving averages on the daily chart. The existence of major support combined with an upbeat chart structure is pointing towards a gradual rise from hereon.

Tata Chemicals |Buy| Target price Rs 660 | Stop loss Rs 598

Tata Chemicals has been trading in a broader range for the last nine months and now trading on the verge of a breakout. The chart pattern and positioning of the supporting indicators are adding to the confirmation.

Kotak Mahindra Bank | Buy| Target price Rs 1,710 | Stop loss Rs 1,575.

Kotak Mahindra Bank is one of the strongest counters in private banking space and currently consolidating in a range around its record high. Indications are strongly in the favor of breakout from the same in the near future. Besides, the existence of major support around Rs 1,540 zone is further adding to the positivity.

Vikas Jain, Senior Research Analyst, Reliance Securities

ITC | Buy | Target price Rs 275 | Stop loss Rs 230

This stock has made an inside range on monthly candles which indicates a strong breakout and the positive momentum in the sector will aid stock to outperform. A bullish crossover on RSI and Stochastic are signaling turnaround in the stock. The analyst believes the stock will soon resume its northward journey and will revisit the prior swing highs.

Engineers India | Buy | Target price Rs 125 | Stop loss Rs 102

This stock is being trading in a band of averages and crossover of the short to medium term average will give a fresh breakout. The stock has formed higher bottom after witnessing sharp decline, signaling lack of selling interest. RSI and MACD are positively poised above their averages.

Mustafa Nadeem, CEO, Epic Research

Escorts | Buy| Target price Rs 720 | Stop loss Rs 620

This stock has seen a very strong run-up from lower levels of Rs 500 recently and has formed a Pennant pattern. A fresh breakout is seen from the same pattern which is a bullish continuation pattern, indicating a further extended run in prices can be seen. A positive moving average crossover coupled with RSI above 60 shows strength will continue to sustain.

Balkrishna Industries| Buy| Target price Rs 720 | Stop loss Rs 620

This stock has given a fresh breakout from a rectangle pattern as it has been oscillating between a range of Rs 800-700. On the other hand, the Long build-up is also seen in prices adding almost 10 per cent while RSI is showing strength above 70 on a daily scale. A positive cross of 20 & 50 MA further validates the view.


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