NEW DELHI: Strong corporate earnings helped the domestic equity market log weekly gains for the fifth consecutive period last week.
The SP BSE Sensex rose 1.6 per cent for the week to settle at 34,970 while NSE's Nifty50 added 1.2 per cent to shut shop at 10,692.Going ahead, the focus would be on corporate earnings, bond yields (US as well as in India) and crude oil price.
So far, Indian equities have shrugged off the negative implications of increase in crude price on inflation, current account deficit and gross fiscal deficit.
But, we would like investors to be watchful of this concern, said Sanjeev Zarbade, Vice-president-PCG Research at Kotak Securities.While better-than-expected earnings from IT firms and a couple of banks have kept market sentiment elevated, weak numbers from other sectors can weaken market sentiment, Zarbade said.
Based on various brokerage recommendations, here are 10 stock strategies that can potentially see good gains over the next three weeks.Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP ParibasPTC India | BUY | Target Price: Rs 102 | Stop loss: Rs 86.70PTCs daily chart shows a three-wave correction after a five-wave rise.
The correction retraced nearly 78.6 per cent of the rise, which proved to be a crucial support.
Over there, the daily lower Bollinger Band also offered support to the counter.
Consequently, the stock has taken off thereon.
As per the Elliott Wave Theory, PTC is expected to form another set of a five-wave rise from current level.
Thus, this is a high probability level to initiate a fresh buy position.Piramal Enterprises | BUY | Target Price: Rs 2,900 | Stop loss: Rs 2,550PEL witnessed a multi-month correction from the high of Rs 3,070 registered in June last year.
The correction looks over in the last month at the low of Rs 2,275.
Thereon the stock seems to have embarked on a fresh rally, which can last for several months.
Thus, the stock looks positive from short term as well as medium term perspective.
The stock is moving up along with a rising trendline.
The recent structure shows that the stock has formed a consolidation above the trendline and has broken out from the consolidation on the upside.CEAT | BUY | Target Price: Rs 1,787 | Stop loss: Rs 1,508CEAT has been forming an Inverted Head Shoulders, which is a bullish pattern.
The pattern is spanning over several weeks so the implication of the pattern breakout is likely to be significant.
Currently, the stock is forming right shoulder of the pattern.
Hereon it is expected to head towards the neckline and can eventually breakout on the upside.
The risk reward ratio at this level is very attractive to take a fresh long position.Milan Vaishnav, CMT, MSTAIIFL HOLDINGS | BUY | Target Price: Rs 835 | Stop loss: Rs 720This stock tested the high of Rs 874 and since then it has been under a corrective retracement.
It has tested the 100-DMA level twice and is seen taking support and bouncing back from this significant support area.
A buy signal has emerged over Stochastic on the daily chart.
The RSI is seen forming a higher bottom and is seen inching higher showing a bullish divergence against the price.
On the candles, a candle with a long lower shadow emerged near the support area of 20-WMA.
Some pullback and upward revision in prices cannot be ruled out.Bajaj Finserv | BUY | Target Price: Rs 5,650 | Stop loss: Rs 5,340This stock has formed a classical rounding bottom formation followed by a double top.
After a minor attempt to break above this price level, the stock presently remains under sideways consolidation.
A couple of signals have emerged which point towards likely upward revision in prices over coming days.
RSI is seen taking support at a pattern and is seen moving higher.
The weekly MACD remains in continuing buy mode.
The stock remains in leading quadrant when compared against the financial services pack on the RRG.Gajendra Prabhu, Technical Research Analyst at HDFC SecuritiesIRB Infra | BUY | Target Price: Rs 290 | Stop loss: Rs 248This counter has started a fresh rising leg from the low of Rs 249 which is end of either wave b/ii.
Price is finding support at the key moving average i.e.
21-day EMA.
On the weekly chart, the stock has formed long legged doji candle pattern which is significant bullish reversal formation.
In addition, the price is rebounding from 50 per cent retracement level of last rise from Rs 214 to Rs 282.
Also, the stock has been forming higher top and higher bottom formation in larger degree which is a bullish development.
In bigger picture, price is in internals of major wave C and has good upside potential.Wockhardt | BUY | Target Price: Rs 910 | Stop loss: Rs 765This stock has been forming an Inverted Head Shoulder pattern on daily chart and price is hovering at the neckline.
The stock is likely to breakout in next few days as the stock is trading above all key moving averages of 21-, 50- 200-day EMAs.
Apart from this, it is in progress of attempting to cover the down gap witnessed on January 30, 2018 placed at the Rs 910 level.
Major wave C is in progress and the stock has fair potential to make new 52-week high in the long run.Aditya Agarwala, Technical Research Analyst, YES SecuritiesApollo Tyres | BUY | Target Price: Rs 314-Rs 323 | Stop loss: Rs 280On the weekly chart, Apollo Tyres has broken out from an Ascending Triangle pattern triggering an extension of the uptrend.
On the daily chart, the stock has broken out from a pennant pattern suggesting higher levels in the coming trading sessions.
RSI on weekly chart has turned upwards, currently trading above the 60-level affirming the strong bullishness dominant in the stock.
It can be bought in the range of Rs 291-Rs 294 for targets of Rs 314-Rs 323, keeping a stop loss below 280.Mazhar Mohammad, Chief Strategist Technical Research Trading Advisory, Chartviewindia.inLT Finance Holdings | BUY | Target Price: Rs 185 | Stop loss: Rs 160This counter appears to have formed a nice base around Rs 163 levels in recent correction after testing its 200-Day Moving Averages.
If a fresh leg of upswing is in progress from Rs 163 levels, then with a pickup of momentum in broader markets and fresh breakouts in this counter above Rs 170 levels, it shall ideally head towards Rs 185.Power Finance Corporation | BUY | Target Price: Rs 97 | Stop loss: Rs 81In Fridays session, this counter made a dramatic turnaround by trapping the bears with a false break down below its range bound move of Rs 83Rs 90 in which it was consolidating for a couple of weeks.
This reversal of last session resulted in a Hammer formation on weekly candlestick charts which shall have a bullish connotations going forward.
With this renewed strength this counter shall head to much higher levels going forward with fresh breakouts above Rs 90 levels.(Views and recommendations given in this article 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.)