Looking at the charts, do you think stock can be one of the main performers next week?
Absolutely. The stock has managed to surpass above Rs 2,350-2,370 levels after almost a year. RIL has managed to break above its resistances towards a new high. It is looking quite strong and formidable. Positive news flows can help boost its near-term trends but eventually once the trends pick up you will see more stability coming back. The stock has gone through periods of consolidation and shown signs of stability in that patchy phase as well. I think Rs 2,500 to Rs 2,550 should be a modest target for the stock over the next couple of weeks.
Which stocks would you recommend for the coming week?
Looking at the market texture, I would continue to remain bullish on individual stocks. I have three buy calls for next week.
The first one is a buy on Kotak Mahindra Bank. The stock is looking extremely strong. We saw a breakout in the stock on Wednesday. The manner of the breakout was quite formidable. The price-volume movement gives confirmation in terms of short-term trends. I would suggest a buy on the stock with Rs 1,950 as a near-term target. A stop loss could be kept at Rs 1,765.
In the midcap space, I have a buy call on Care Ratings. It is an interesting name because it is forming a classical dual pattern – a pattern of higher highs and higher lows on the medium charts. On the short-term timeframe charts, it is forming a bullish flag pattern breakout. The stock closed near Rs 730. I would suggest a buy with a target of almost Rs 850. Keep a stop loss near Rs 688 mark.
The third would be a buy on Bharti Airtel. I have been very bullish on the stock in the last one-and-a-half months from the levels of Rs 540-550. Even at current levels, I maintain that stance as the stock looks strong for an up move. I have raised the target to Rs 725 on Bharti Airtel. Traders can buy afresh with a stop loss at Rs 665.
