Money-making ideas
A record surge in Covid-19 infections is spooking Dalal Street once again amid weakness across global markets, as investors await the onset of the corporate earnings back home. Anticipating strong stock-specific action, analysts have made a few recommendations that they believe can help investors bag handsome returns in the coming weeks.
Alkem Labs | BUY | Target Price: Rs 3,150
The stock surged past its recent high of Rs 2,799 on the back of above average volumes last week. This augurs well for the upmove to continue. Technical indicators too are giving healthy signals as Alkem Labs trades above its 20-day and 50-day SMA and intermediate momentum indicators like the 14-week RSI are in a rising mode and not overbought. The analyst expects the stock to gradually move higher and, therefore, recommends a buy between Rs 2,800 and Rs 2,860. Stop loss should be kept at Rs 2,700 for target of Rs 3,150.
(Analyst: Subash Gangadharan, Senior Technical & Derivative Analyst, HDFC Securities)
Indraprastha Gas (IGL) | BUY | Target Price: Rs 610
The stock broke out of its recent trading range on the back of above average volumes on Friday. This indicates significant accumulation and augurs well for the upmove to continue. Technical indicators too are giving healthy signals as IGL stock trades above its 20-day and 50-day SMA and daily momentum indicators like the 14-day RSI are in a rising mode and not overbought. The analyst expects the stock to gradually move higher and, therefore, recommends traders to buy IGL in the Rs 530-545 range for a target of Rs 610. He recommends keeping a stop loss at Rs 510.
(Analyst: Subash Gangadharan, Senior Technical & Derivative Analyst, HDFC Securities)
HDFC | BUY | Target Price: Rs 2,690
After a strong uptrend rally, the stock witnessed a short term correction last week. It corrected from its all-time high of Rs 2,896 to Rs 2,413. However, the medium term texture of the stock is still in the positive zone. Post correction, HDFC took support near an important retracement level and is currently near 20-day SMA with modest double bottom formation. The daily and weekly structure suggests that a reversal wave will continue in the near term if it manages to trade above Rs 2,420, which should be the stop loss. The analyst has set a target price of Rs 2,690 on HDFC.
(Analyst: Shrikant Chouhan, EVP – Equity Technical Research at Kotak Securities)
Infosys | BUY | Target Price: Rs 1,540
The stock has maintained consistent uptrend from the last couple of weeks, rallying from Rs 1,350 to 1,450 within the period. That uptrend wave was price dominating and supported with decent volume activity. On the daily and weekly charts, Infosys has formed a robust breakout continuation pattern which suggests that the uptrend momentum is likely to persist in the near future. For swing traders, Rs 1,390 should be the key level to watch out for and stop loss for the trade. The analyst expects a rally towards Rs 1,540.
(Analyst: Shrikant Chouhan, EVP – Equity Technical Research at Kotak Securities)
