RIL, Maruti, HDFC Bank among nine technical picks for this week; do you own any?

“In the present favourable market mood, Nifty is likely to make another attempt at a new record high trying to conquer the psychological market of 20,000. But, investors have to be cautious since fundamentals do not support a sustained rise above 20,000,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“The market may correct after hitting 20,000-odd levels but there may not be a sharp correction and the Nifty may find some stability near the 19,400 mark. Some profit booking in small-caps is advisable. Now, safety is in quality large-caps,” Vijayakumar said.

Risk emanating from sticky inflation, elevated interest rates and weakening global economic growth continue to loom. Experts suggest one should trade cautiously in this market and bet on only quality stocks. Based on the recommendations of several experts, here are nine technical calls that one can buy for the next three to four weeks. Take a look:

Gaurav Bissa, VP, InCred Equities

Chennai Petro has been in a 14-month consolidation period during which it witnessed incremental volumes, suggesting the stock has witnessed accumulation. The stock has witnessed a consolidation breakout on the weekly charts which can give a strong push to the stock price. Supertrend indicator with modified settings has also given a bullish signal which can result in the start of a fresh uptrend in the coming weeks.

Aditya Birla Fashion and Retail (ABFRL) | Target price: ₹250 | Stop loss: ₹220

ABFRL has been an underperformer throughout the rally seen in large-cap and mid-cap stocks. The stock has been consistently forming lower highs and lower lows which is a characteristic of a downtrend.

It has bounced smartly after witnessing a positive divergence in RSI on the daily charts. The stock has confirmed trend reversal on daily charts which makes it a lucrative buy at the current levels.

The supertrend indicator has generated a bullish signal and RSI is trading near 65 level which can give a strong thrust to the stock price resulting in a major upside going forward.

Reliance Industries (RIL) | Target price: ₹2,600 | Stop loss: ₹2,390

Reliance Industries was one of the major reasons for a strong move in Nifty after it crossed the 19,000 level last month. The stock enjoyed strong outperformance for a couple of months, however, after the demerger of Jio Financial Services, it has been trading with a weak bias.

The stock witnessed a strong correction, but it has retested a multi-month ascending channel pattern on daily charts. The stock is forming a rounding bottom pattern formation near its 89-EMA (exponential moving average) support on the daily chart which can result in a move towards ₹2,600 level.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers

Maruti Suzuki India | Target price: ₹12,000 | Stop loss: ₹9,000

After consolidating for over five years, Maruti finally managed to break out from the psychological hurdle of ₹10,000. The breakout was accompanied by humongous volumes and hence looked genuine.

“The theoretical long-term target for the breakout seems to be over ₹14,000 from here on. Traders are advised to buy the stock in the range of ₹10,300 – 10,000 with a stop loss of ₹9,000 on a closing basis for an upside target of ₹12,000,” said Patel.

Greenpanel Industries | Target price: ₹450 | Stop loss: ₹345

Greenpanel Industries has been consolidating between ₹310 and ₹350 for the last three months. Recently, it gave breakouts on a weekly scale. On the daily chart, it is trading above all major daily exponential moving averages, which looks lucrative. Even the weekly RSI has rebounded from 50 levels, thus hinting at further bullish bias.

“We advise traders to go long in the stock in the range of ₹375–385, with a stop loss of ₹345 and a target of ₹450,” Patel said.

Sterlite Technologies | Target price: ₹200 | Stop loss: ₹155

For the last three months, the said counter has been consolidating in the range of ₹145-155. Recently it had given a clean breakout from the said range and is currently placed at ₹171 level.

It also cleared its downward-sloping trendline quite comfortably. The best part about this reversal is that it has bounced back from its monthly central pivot range which has acted as massive support.

“One can buy the stock in the zone of ₹168-172 for a target of ₹200 and the stop loss would be around ₹155 on a daily closing basis,” Patel said.

Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher

CDSL | Target price: ₹1,480-1,500 | Stop loss: ₹1,200

The stock has witnessed a decent spurt with a strong bullish candle pattern on the daily chart. After a breakout above the ₹1,260 level, one can expect further gains. RSI is also well-placed and indicates much upside potential from here on.

“With the chart looking good, we suggest buying and accumulating the stock for an upside target of ₹1,480-1,500, keeping the stop loss at ₹1,200,” said Parekh.

HDFC Bank | Target price: ₹1,770 | Stop loss: ₹1,550

The stock has been in a consolidation phase near the ₹1,550-1,600 zone, maintaining the support of ₹1,560. It is expected to rise further in the coming days due to some improvement in the bias. The RSI is well-placed as it recently reversed from the oversold zone.

“With the chart looking good, we suggest buying and accumulating the stock for an upside target of ₹1,770, keeping the stop loss at ₹1,550,” said Parekh.

Cummins India | Target price: ₹1,970 | Stop loss: ₹1,680

The stock has witnessed a decent steep correction from the ₹1,980 level, showing signs of bottoming out near the ₹1,680 level with an indication of improvement in the bias.

The stock has almost reached the long-term trendline support zone and is well-placed with a favourable risk-reward ratio. The RSI, after the steep fall, is in the highly oversold zone, signalling a buy with much upside potential.

“With the chart looking attractive, we suggest buying and accumulating the stock for an upside target of ₹1,970, keeping the stop loss at ₹1,680.

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Disclaimer: The views and recommendations above are those of individual analysts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

Updated: 11 Sep 2023, 01:04 PM IST