Stock indices after plunging sharply for the last two days have regained their momentum on Friday, 1st day of April series and are trading higher with gains of more than 1.5 percent on the Nifty.
Next lower levels to be watched out on the Nifty are at around 14350-14300 in the next few session before showing another round of small upmove from the lows. Any pullback rally could find resistance around 14675-14750.
Now given the market mood, here are 2 buy calls by HDFC Securities for gains in the near term:
1. Buy Sequent Scientific Ltd - Target price: Rs. 272
As per the weekly timeframe chart, the downward correction in the stock price of Sequent Scientific of the last 5 weeks seems to have completed. On Tuesday-Wednesday, the scrip saw sharp gains and settled higher. After a downtrend this pattern is suggestive of an attempt of upside breakout.
The weekly 10 period EMA is consistently providing support for the stock price and the latest upside movement has occurred from near this support around Rs. 225 levels. The momentum oscillator shows positive indication. Buying can be done in the stock of Sequent at a CMP of Rs. 248.05 and added more on dips down to Rs. 238 with a target of Rs. 272 in the next 3-4 weeks. Place a stop loss of Rs. 232.
2. Buy Balrampur Chini Mills - Target price:
Over the last few weeks, the prices of sugar stocks are seeing an uptrend. The losses of the previous week have been recouped as the stock is up by over 7%. Upmove from here could result in an upside breakout of the hurdle of Rs. 226 and that could pave way for more upside in the short term. Weekly 14 period RSI has turned higher from near 60 levels that indicates possibility of an upside momentum. With gains in the stock price, volume in the counter has also started to expand.
Buying in the stock can be initiated at levels of Rs. 218, add more on dips down to Rs. 210 and wait for the upside target of Rs. 240 in the next 3-4 weeks. Place a stop loss of Rs. 203.