NEW DELHI: The domestic equity market suffered sharp losses in morning trade on Monday, as the euphoria over Fed pause and Budget booster fizzled out and investors embarked on a selling spree amid poor health of the rupee, which fell nearly 48 paise against the US dollar this morning.
In the absence of fresh directional cues, the market moved towards the negative terrain, led by losses in banking and auto heavyweights.
Asian peers logged gains, but dollar’s rise against its peers weighed in on emerging market currencies and stocks. The Chinese market is closed all week for Lunar New Year.
Sensex dropped over 190 points in opening deals and Nifty slipped below 10,830. Around 10:15 am, the BSE Sensex was down 102 points, or 0.28 per cent, at 36,367, while Nifty fell 39 points, or 0.36 per cent, to 10,854.
Technical analysts see stock-specific opportunities in the bearish market. Based on various brokerage recommendations, here is a list of seven stocks that can potentially deliver solid gains over next 2-3 weeks.
Kunal Parar, Senior Research Analyst, Choice Broking
Tech MahindraNSE 0.34 % | Buy | Target price: Rs 793-810 | Stop loss: Rs 710
This stock has seen a breakout from the upper band of a symmetrical triangle formation on the daily charts. This may cause the stock to spurt from its current level. Moreover, the stock has been continuously trading with strong support from 200-day moving average (DMA), which shows that the long-term trend is upward. Daily momentum indicator RSI read 62.80 with a positive crossover, which signalled positive breadth on the counter.
UltraTech CementNSE -1.04 % | Buy | Target price: Rs 3,720-3,800 | Stop loss: Rs 3,330
This stock has been trading with support from its upward rising trend line on the weekly chart, which suggests a likely bounceback on the counter. Daily momentum indicator RSI reading was at 33.10 with a positive crossover. Apart from this, the RSI has just come out of the overbought zone, which indicates a positive move on the counter.
Vaishali Parekh, Senior Technical Analyst at Prabhudas Lilladher
Hexaware TechnologiesNSE 1.52 % | Buy | Target price: Rs 385 | Stop loss: Rs 315
This stock has been consolidating for some time in the Rs 310-330 range. It has seen a breakout above that range to signify strength and is showing immense potential to rise further in the coming days. The RSI has shown a trend reversal and given a buy signal to maintain the positive bias. “With good volume activity, we recommend a buy signal on this stock for an upside target of Rs 385, keeping a stop loss at Rs 315,” said Parekh.
Hindustan UnileverNSE 0.18 % | Buy | Target price: Rs 1,930 | Stop loss: Rs 1,725
This stock has been sliding in recent times and it has seen a decent bounceback with a bullish positive candle to signify strength. It has the potential to rise further in the coming days. The chart looks attractive and with the RSI indicating a steep trend reversal to signal a buy, the bias has become positive.
Sameet Chavan, Chief Analyst, Angel Broking
Godfrey Phillips India | Buy | Target price: Rs 1,020 | Stop loss: Rs 903
The daily chart of this stock shows a series of ‘higher highs and higher lows.’ In the process, the stock finally broke out the trend line hurdle at Rs 930 with some authority. This move was supported by humongous volumes, providing credence to the price action. After this, the stock saw some consolidation but that could be seen as a good buying opportunity.
Jubilant FoodworksNSE 2.84 % | Buy | Target price: Rs 1,565 | Stop loss: Rs 1,212
After enjoying a good multi-year bull run, this stock slipped into the consolidation mode. Price action in past two days has been encouraging. Due to a massive bumpup on Friday, the stock finally seemed to have come out of the congestion zone. Its volume activity has risen substantially over the past three days, indicating the emergence of strong buying interest. “Considering this price and volume development, we expect the stock to resume its higher degree uptrend,” said Chavan.
Titan CompanyNSE 3.45 % | Buy | Target price: Rs 1,055| Stop loss: Rs 964
This stock has been one of the outperformers and is known for its steady performance. It has been enjoying a strong multiyear bull-run, started a decade ago. In between, all natural corrections in this stock were interpreted as good buying opportunities. The stock recovered sharply from recent lows and went on to clock fresh record highs. The daily chart looks extremely promising from a near-term perspective.