Maruti, Lupin among 12 stock ideas that analysts say should deliver gains in weeks

Mumbai: Domestic equity indices shrugged off bleak September quarter GDP data, and both Sensex and Nifty logged modest gains in early trade on Monday.

Sensex had shed 336 points to close at 40,793 points on Friday ahead of the GDP print, while Nifty had slipped 95 points to 12,056.

Friday’s weakness seemed to be a worrying factor for the bulls at highs, but there is still no confirmation of any important top reversal pattern around the 12,150 mark on Nifty, said Nagaraj Shetti, technical research analyst at HDFC Securities.

“Nifty has crucial support placed at 11,850-800 levels and a decisive move below this support can confirm an important reversal pattern. The key overhead resistance is at 12,150 level,” Shetti said.

But analysts expect the market to continue witnessing stock-specific action. Based on various brokerage recommendations, here is a list of 14 money-making ideas that analysts say should deliver gains over the next few weeks.

Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory,

Lupin| Buy | Price target Rs 870| Stop loss Rs 787

This counter appears to have registered a clean breakout above its interim top placed around Rs 780 level on the weekly line chart. Moreover, a bullish reversal formation, called the ‘Inverted Head & Shoulders,’ is clearly visible on both weekly as well as daily line charts (closing price chart). “Hence, this counter may be in for a fresh leg of upswing with targets placed around Rs 870. The stop loss suggested for the trade is a close below Rs 787 level,” said Mazhar.

JM Financial | Buy| Target price Rs 99 | Stop loss Rs 81.70

A strong recovery in last two sessions after retracing 62 per cent of last leg of rally from the lows of Rs 71 – 100 is clearly suggesting that this counter resumed its next leg of up-move from the recent lows of Rs 82. If it sustains above this level, it should initially head to test the recent swing high of Rs 100. “As a right technical stop loss level is somewhat far away from the current price, positional traders are advised to adopt a two-pronged strategy to buy now and add further on dips in the Rs 87 – 84 zone and look for an eventual target of Rs 99,” the analyst said. The stop loss suggested for the trade is a close below Rs 81.70 level.

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Sobha | Buy | Price target Rs 447| Stop loss Rs 385.

As stocks in real estate space appears to be gaining interest of the investors, this counter which has relatively underperformed its peers appears to be on catch up mode as it witnessed a strong gap up in Thursday’s session which was followed by a decent bullish candle on Friday. This price action for the week, from the lows of Rs 376, resulted in a Hammer kind of formation on weekly charts. The analyst advised positional traders to adopt a two-pronged strategy of buying now and adding further on dips if it slips into the bullish gap zone between Rs 400 and Rs 393 levels, and look for a target of Rs 447. The stop loss suggested for the trade is a close below Rs 385 .

Ajit Mishra, VP Research, Religare Broking

Century Textiles & Industries | Buy| Target price: 482 | Stop loss Rs 448

Century Textiles has been hovering in a range for last one week, after retesting the resistance zone around Rs 465 mark. On Friday, it posted a fresh breakout from the same level supported by a decent rise in volume, indicating that the positive momentum is likely to continue going forward. The analyst suggests a target price of Rs 482, with a stop loss of Rs 448.

The Ramco Cements| Buy| Target price Rs 830| Stop loss Rs 770

The Ramco Cements has formed a ‘Cup and Handle’ pattern, which generally acts as a continuous pattern, on the weekly chart while holding above the support zone of long term moving averages. Also, it has formed a fresh buying pivot on chart and now trading on the verge of breakout. The target price recommended by the analyst is Rs 830, with a stop loss at Rs 770.

Mustafa Nadeem, CEO, Epic Research

Ujjivan Financial Services| Buy| Target price Rs 375-380| Stop loss Rs 315

A very good breakout is seen on the charts with prices closing above its entire consolidation zone of Rs 320 – 270, which has been happening since July 2019. Much higher volume participation and strength in RSI validate a breakout. The analyst believes the stock can move towards much higher levels of Rs 375 – Rs 380 with a stop loss of Rs 315. “One should look to buy around Rs 330 – Rs 325 levels,” he added.

Adani Ports & Special Economic Zone | Buy| Price Target Rs 425 | Stop loss Rs 365

A bullish engulfing pattern is seen daily while a reversal pattern is seen on a weekly scale. The stock has taken support at Rs 360 levels and closed above its two weeks of consolidation. Much higher volume participation along with closing above 100-SMA indicates further uptrend with the target of Rs 425 and stop loss at Rs 365, the analyst said.

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Tata Global Beverages | Buy | Target price Rs 355 | Stop loss Rs 305

This stock is on the verge of a breakout, closing at its previous all-time high. There is above-average volume participation while RSI above Rs 60 level show strength in the positive momentum. The analyst expects Tata Global to make new record highs with the stock moving towards Rs 355 while stop loss can be placed at Rs 305.

Shrikant Chouhan, Head of Technical Research, Kotak Securities

Maruti Suzuki India| Buy| Target price Rs 7,600 | Stop loss Rs 7,120

This stock is one of the major outperformers from the basket of auto stocks and has started moving upward after hitting a new 52-weeks low. Currently, it is comfortably trading above its previous peak and major long term moving average at Rs 7,000. On a daily basis, the stock has formed hammer formation after rallying from the levels of Rs 7,000, which is an indication of bullish continuation formation. The analyst recommends a target price of Rs 7,600 with a stop loss at Rs 7,120.

Vikas Jain, Senior Research Analyst, Reliance Securities

Container Corporation| Buy | Target Price Rs 625| Stop loss Rs 548

This stock has bounced from its medium term averages after witnessing a correction from its recent 52-week high of Rs 668 level, signalling a near-term turnaround. The oversold Stochastic and RSI are indicating that the stock is on the verge of a turnaround and will soon resume its up-trend. “Technically, its bullish indication and traders should buy the same with a final stop loss at Rs 560, and a target price of Rs 625,” the analyst said.

Vaishali Parekh, Senior Technical Analyst at Prabhudas Lilladher

Torrent Power| Buy| Target price Rs 305| Stop loss Rs 275

This stock has been perfectly taking base at the ascending trendline support and recently has taken base near Rs 278 level and thereafter has indicated a bounce back. The RSI also has shown stabilization near Rs 40 level and is on the verge of a trend reversal. “We recommend to buy this stock for an upside target of Rs 305 keeping a stop loss of near Rs 275 levels,” the analyst said.

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Sameet Chavan, Chief Analyst – Technical and Derivatives, Angel Broking

Union Bank of India| Buy| Target price Rs 75| Stop loss Rs 56

After a prolonged underperformance, PSU banks have revived from their lows in the last few weeks. On the daily chart, we are now witnessing a bullish reversal pattern breakout known as ‘Inverse Head and Shoulder’. The said breakout is supported with a good increase in volume and bullish candle stick pattern. In addition, momentum oscillators on the weekly chart have just come out from its oversold zone suggesting further potential of up move in the near term. Looking at all the above evidence, the analyst senses a strong upside in the near term and hence recommends buying this stock at current levels for a target of Rs 75 over the next 14 sessions. “The stop loss should be at Rs 56,” he said.

Stock recommendations from top global brokerages

Credit Suisse on RIL

2 Dec, 2019

Credit Suisse maintains neutral rating on RIL with a target price of Rs 1,551 per share. It expects Jio yo maintain discount to peers Airtel and Vodafone Idea and sees a hike in price of 25-30% for the most popular plans.


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