- by Stocktry Expert
- 18th Jan 2021
Traders are Advised to Avoid Aggressive Leveraged Positions
Indian market managed to close in green after falling in the second-half of the last week. In the week ended January 15, a bigger cut was seen in the broader market.
The S&P BSE Midcap and Smallcap index were lower than 1.2 percent each in the same period.
The Nifty50 climbed above 14,600 in the week gone by but bears took control on Friday and pushed the index towards 14400 levels, however, the trend remains to be on the upside. India VIX rose from 20.65 as on 8 January to 24.01 recorded on 15 January.
On the daily chart, Nifty closed below 5-day EMA for the first time in the recent past, which is the first sign of weakness.
“The extension of profit-booking cannot be ruled out this week. The moment we see Nifty sliding below 14,380, the index may slide towards 14,250-14,100 levels. In terms of stocks, the fatigue was seen in so many counters from Wednesday itself,” Sameet Chavan, Chief Technical & Derivatives Analyst at Angel Broking and added, “The banking index is at its previous record highs and the Nifty Midcap 50 index, which is at the crucial Fibonacci ratios, may see much-awaited corrective moves.”
Chavan also said that since the overall trend has been strongly bullish, even if the correction comes. Traders are advised to stay light and avoid aggressive leveraged positions.
Below is a list of top 10 stocks advised by various experts for the next 3-4 weeks:
1. HDFC Ltd :
Rating - Buy
LTP - Rs 2631
Target - Rs 3000
Stop Loss - Rs 2400
Upside - 14%
We expect the stock to find support near the 2550-2600 zone with a rally likely to extend towards Rs 3,000 mark with support seen at Rs 2400 mark.
2. REC:
Rating - Buy
LTP - Rs 145
Target - Rs 169
Stop Loss - Rs 135
Upside - 16%
Sustenance above Rs145 would result in the resumption of an uptrend towards a move of Rs169 with a Stop Loss of Rs135.
3. Hero MotoCorp:
Rating - Sell
LTP - Rs 3205
Target - Rs 2950
Stop Loss - Rs 3320
Downside - 8%
The stock has multiple hurdles near the 3320-3400 zone, while on the flip side, it could revisit levels of 2950-2900.
4. ITC:
Rating - Buy
LTP - Rs 215
Target - Rs 230
Stop Loss - Rs 205
Upside - 7%
Over the past four weeks, it has broadly consolidated between 200 and 218.
5. UPL:
Rating - Buy
LTP - Rs 522
Stop Loss - Rs 490
Target - Rs 570
Upside - 9%
As the stock holds above 493, we can expect the rally to extend further.
6. Bajaj FinServ:
Rating - Sell
LTP - Rs 8631
Sell at - Rs 8700
Stop Loss - Rs 9000
Target - Rs 8200
Downside - 5%
A break below 8560 would form a lower low as well, which would signal at a short-term price correction in the days ahead.
7. Apollo Hospitals Enterprise Ltd:
Rating - Buy
LTP - Rs 2591
Target - Rs 2780
Stop Loss - Rs 2520
Upside - 7%
We can expect a target of Rs 2,780 from a medium-term perspective. We recommend a buy with a stop loss of Rs 2,520.
8. Deepak Fertilizers Ltd:
Rating - Buy
LTP - Rs 162
Target - Rs 195
Stop Loss - Rs 134
Upside - 20%
We expect a target of Rs 195 from a medium-term perspective. We recommend a buy with a stop loss of INR 134.
9. Vodafone Idea:
Rating - Buy
LTP - Rs 13.60
Target price - Rs 20
Stop loss - Rs 10.90
Upside - 40%
On the monthly chart, the stock traversed 20-EMA which is supported by the RSI-smoothed oscillator which has crossed the 30 mark to come out of the bearish (oversold) territory after May 2018.
10. Indraprastha Gas (IGL)
Rating - Sell
LTP - Rs 548.85
Target price - Rs 527
Stop loss - Rs 576
Downside - 4%
IGL has been one of the marquee PSU names, managing to clock whopping gains of nearly 55 percent in such a short span of time to register a fresh record high of Rs 581 last Thursday.
Unfortunately, it failed to sustain at higher levels as profit-booking pulled prices lower last Friday to enter the sub-550 territory.
