Stocks that will give good returns in the coming week
Market expert, Milan Vaishnav is bullish on the following stocks for the week ahead
Taj GVK Hotels & Resorts
– Buy Taj GVK above 161 with a short term holding target of 180. Since marking highs around 181 in late April 2017, this stock has remained in a broad trading range.
– Daily MACD remains in continuing buy mode and RSI stays neutral in rising trajectory. On the Weekly Charts, RSI shows continuation of momentum while marking a higher bottom.
– A buy signal on the Stochastic on the Weekly Charts has emerged with a bullish divergence. OBV has already marked a fresh high which is a positive sign.
Bharat Forge Limited
– Accumulate Bharat Forge above 1,225 with medium term target of 1,275: We recommend accumulating this stock with each dips.
– After breaking out from a ascending triangle, the stock marked the high around 1,275 and has shown a corrective decline. The momentum on the Charts remains intact. The RSI on the Daily Chart shows bullish divergence against the price.
– The Daily MACD remains in continuing buy mode. A fresh buy signal has emerged as Weekly MACD has reported a positive crossover. It is now bullish trading above its signal line. The upward rising channel on the Weekly Chart remains intact.
– Buy HCL Tech above 884 with short term holding target of 910: After marking a Double top around 910, the stock has remained in a broad trading range. Few signals have emerged which show likely uptick in prices in coming days. Daily MACD stays bullish and in continuing buy mode.
– RSI stays neutral on the Daily Charts maintaining momentum and marking higher bottoms.
– A big white, potentially bullish candle has emerged. It is significant as it has occurred near support area of 50-DMA. A positive crossover is seen on Weekly MACD which is a strong positive factor.
Tata Elxsi Ltd
– Buy Tata Elxsi above 845 with short term target of 900. This stock qualifies for a swing trade and is due for a technical pullback. After marking highs around 925, it has been under corrective decline.
– The RSI on Daily Chart rests at pattern support. The stock remains oversold on Stochastic on Daily Charts while it remains in continuing buy mode on Weekly Charts. RSI on Weekly Charts shows bullish divergence.
– While the stock corrected OBV did not decline which is a strong positive sign.
Sun Pharmaceuticals Industries
– Buy Sun Pharma above 512 with short term holding target of 540. The stock has been under secular downtrend for the most part of 2017. After marking a low at 432, the stock seems to have established and confirmed a firm base and has marked a reversal.
– Presently it has taken support at its 200-DMA and has been accumulating around those levels. Daily MACD stays bullish and in continuing buy mode. A fresh buy signal on the Weekly Chart have emerged as the Weekly MACD has reported a positive crossover and it is now bullish trading above its signal line.
– Pharma index as a whole and Sun Pharma in particular may see relative outperformance against the general markets.
Five stocks that are likely to give good returns in the week ahead:
Sharp gains on the benchmark indices surprised many, as investor community still awaits more clarity on geo-political developments in the Korean peninsula, and the outcome of the US Federal Reserve meeting, later in the week. Going ahead, experts are bullish on the following 5 stocks:
Infratel | ‘Buy’ | Target Price: Rs 395
After marking highs around 424, the stock remained in congestion zone in a narrow 418-424 range. It has seen a corrective decline since then. It has formed a base around 368-374 zone and has shown signs of a
A bullish Stochastic buy signal has emerged on Daily Charts. Daily MACD has reported a positive crossover and it is now bullish trading above its signal line.
On the Weekly Chart as well a buy signal has emerged over Stochastic with a bullish divergence against the price. Upward revision in price is likely over coming days.
Koltepatil | ‘Buy’ | Target Price: Rs 225
The stock has traded in a rectangle formation of past many months and has not achieved a comprehensive breakout till date. After marking highs around 220, it has achieved a 100% throwback in price. Daily MACD remains in continuing buy mode.
On the Weekly Charts, a positive crossover is seen on the Weekly MACD. Weekly MACD is bullish while it trades above its signal line. While the stock corrected, OBV has already shown fresh highs which is very bullish.
Aban | ‘Buy’ | Target Price: Rs 200
From 240 levels, the stock has remained under corrective decline. It has attempted to confirm a reversal after forming strong base around 168-170 zones. Currently it trades in a narrow congestion zone around its 50-DMA. An Engulfing Bullish Candle has emerged which shows potential reversal.
A buy signal has occurred over Stochastic with a bullish divergence. On the Weekly Chart, a positive crossover is seen on Weekly MACD. It now trades above its signal line. Bollinger bands are 66% narrower –than-normal on Weekly Charts and 69% narrower-than-normal on Daily Charts which further increase the possibility of a sharp up move.
CAPF | ‘Buy’ | Target Price: Rs 835
In last couple of months, the stock has formed multiple tops around 800 levels. It attempted to move out of this multiple resistance zone and after marking high at 840 has achieved a 100% throwback.
While Daily MACD remains in continuing buy mode, a positive crossover is seen on Weekly MACD which is also no bullish trading above its signal line. A sharp ascending triangle is observed and Weekly Charts and some upward revision in prices cannot be ruled out over coming days.
JK Tyre | ‘Buy’ | Target Price: Rs 165
After failing to clear a minor triple top around 180, the stock has been under corrective decline and in a falling channel. It has attempted to form a base around 200-DMA and has shown some signs of reversal. Daily MACD remains in continuing buy mode.
A candle with a long lower shadow has emerged near the support area. The Bollinger Bands are 42.90% narrower-than-normal which indicate likely sharp move in prices. On the Weekly Charts, a buy signal over Stochastic has emerged. The OBV did not decline while the prices corrected which is very bullish.
Four mean things said about Bitcoin recently
The cryptocurrency has become the talk of the town and is garnering a lot of publicity. From top market experts to the central banks of India and China, everyone has something to say about this virtual currency. However, of late all that is being said about bitcoin is not so positive.
So, let’s find out what are the four mean things said about Bitcoin recently:
RBI “uncomfortable” with Bitcoin
Sudharshan Sen, RBI’s exceutive director has said that the Reserve Bank is uncomfortable with “non-fiat” cryptocurrencies. Elaborating on what is a non-fiat cryptocurrency, Sen said, “Bitcoins for example. That’s a private cryptocurrency.” The RBI has been repeatedly cautioning everyone about the usage of cryptocurrencies, flagging a slew of concerns.
People’s Bank of China bans ICO
The People’s Bank of China said on its website Monday that it had completed investigations into initial coin offering (ICOs), and will strictly punish offerings in the future while penalizing legal violations in ones already completed. The regulator said that those who have already raised money must provide refunds.
Bitcoin tumbled as much as 11.4 per cent, the most since July, to $4,326.75. The Ethereum cryptocurrency was down more than 16 per cent Monday.[“Source-economictimes”]