The domestic stock market has seen some buying in the last few weeks as the focus has shifted from the war in Ukraine to earnings of companies and the evolving economic situation. Many stocks have started giving signals of price breakouts. Below are six such stocks recommended by analysts for strong short-term returns.
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2/7
Macrotech Developers| Buy| Target: Rs 1,420
This week, the stock broke out of its recent highs on the back of above average volumes. Technical indicators are giving positive signals as the stock trades above the 20-day SMA. Momentum readings like the 14-day RSI are in a rising mode and not overbought. With the intermediate technical setup too looking positive, there is scope for more upsides in the coming weeks. The analyst, therefore, recommends a buy between Rs 1,178-1,185 with stop loss at Rs 1,062 and for a target of Rs 1,420.
(Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities)
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3/7
HCL Tech| Buy| Target: Rs 1,250
After a short-term rally, the stock witnessed a narrow range activity. Last Friday, the stock took support near the 200-day SMA and reversed. It was also trading near an important retracement level. A promising bullish candle is indicating strong possibility of fresh uptrend from current levels. Looking at the overall pattern, it offers buying opportunities for positional traders with a decent risk-reward ratio. The trend reversal move is likely to continue up to Rs 1,250.
(Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities)
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4/7
BPCL| Buy| Target: Rs 400
On daily charts, the stock is consistently holding higher bottom series formation. Post a minor correction, the stock took support near Rs 360, or its 10-day SMA, and bounced back sharply. On daily charts, it has formed a strong bullish candle and after a long time it succeeded to close above Rs 370 resistance mark. As long as it is trading above Rs 360, the uptrend wave is likely to continue till Rs 400.
(Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities)
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5/7
IndusInd Bank| Buy| Target: Rs 1,033
After a strong uptrend rally, the stock was consolidating between Rs 920-950. On last Friday, post strong opening it not only cleared the resistance of Rs 950 but also succeeded to close above the same. A robust range breakout formation indicates further uptrend from the current levels. Unless it is trading below Rs 933, positional traders can retain an optimistic stance and look for a target Rs 1,033. Fresh buying can be considered now and on dips, if any, between Rs 970-950 levels with a stop loss below Rs 933.
(Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities)
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6/7
India Cements| Buy| Target: Rs 235
Overall, the cement space has undergone a massive price wise as well as time wise correction in the last 4-5 months. However, considering the recent price behavior, the segment now seems to be in the process of finding its mojo back. India Cements recently formed a good base around its cluster of supports and on Friday, the stock finally came out of its congestion zone. The price configuration on the daily chart depicts a bullish ‘Cup and Handle’ pattern and since it’s backed by decent volumes, buying can be initiated in this stock for a trading target of Rs 235. Stop loss can be placed at Rs 208.40.
(Sameet Chavan, Angel One)
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7/7
HDFC AMC| Buy| Target: Rs 2,390
This stock has done nothing since the last couple of years and surprisingly is one of the worst performers in the super bull run our market has witnessed after the March 2020 fiasco. On Friday, we witnessed a first sign of some relief as prices took off to confirm a decisive price and volume breakout on the daily time frame chart. Although it would be too early to comment, we can see some encouraging signs and hence, will not be surprised to see the beginning of a decent rebound in prices. Traders can look to buy for a near-term target of Rs 2,390. Stop loss can be placed at Rs 2,195.
