It has been a longest winning weekly streak since July on Indian markets amid huge FII inflows and before the trend reversal begins, analyst from HDFC Securities suggest 2 stock picks that can offer quick gains in coming week:
And on Wednesday we saw the first major correction or pullback in the last 4 weeks.The Nifty has in fact made an engulfing line Bearish candlestick pattern. And hence a short term reversal in the Nifty is in the offing.
So, as the index is largely expected to consolidate before taking an upmove, here are 2 buy ideas:
1. ONGC Buy- Targets Rs. 93
On Wednesday, even as the Sensex crashed by a whopping 700 point, ONGC made gains to the tune of 5% primarily on heavy volumes in the stock. On the charts, the stock has recently broken out of a 10 week trading range on the back of above average volumes. And this supports an upward move for the stock.
Positive signals are hence suggestive as the stock remains above the 20-day and 50 day simple moving average or SMA. Intermediate momentum readings like the 14-week RSI too are in rising mode and not overbought.
So, a buy is recommended at a price between Rs. 79-81 with a stop loss at Rs. 75 and target price of Rs. 93. The stock closed Friday's session at Rs. 78.50 per share.
2. Gujarat Fluorochemicals Buy
The stock is making new highs and new higher bottoms amid high volumes it crossed its recent swing highs of 571.5 on an intra day basis on the back of huge volumes. In the process, the stock closed at a 9 month high.
Positive signals are being provided as the 20-day and 50-day SMA. Intermediate momentum readings like the 14-week RSI too are in rising mode and not overbought.
. We therefore recommend a Buy between the 550-570 levels. CMP is 576.85. Stop loss is at 510 while targets are at 690