Concor, ITC, USL, Kotak Bank among 10 stocks that can deliver gains in 2-3 weeks

NEW DELHI: Indian equities suffered strong losses in Monday's session, as investors took the exit root after Budget disappointment even as negative global cues triggered a selloff.

Concerns over another fraud at PNB and the Budget proposal to increase minimum public shareholding limit punctured investor sentiment. Besides, stronger jobs data in the US dashed hopes of aggressive rate cuts by the US Fed, fanning worries that flow of foreign capital will ebb.

Geopolitical tensions in West Asia triggered a spike in crude oil prices and dragged the rupee lower.

While there is pessimism all around, some analysts said investors should adopt a stock-specific approach to be able to reap gains and minimise losses. Based on the recommendations of various analysts and brokerages, here is a list of 10 stocks that they say can potentially deliver gains over the next 2-3 weeks.

Hansraj Modi, CMT, Head Technicals & Derivatives, BP Equities

Concor | Buy | Target price: Rs 640 | Stop loss: Rs 525
This stock has seen a breakout from a multi-month consolidation phase, which is a bullish signal for the short-term trend. The breakout was accompanied by a long-range bullish candle, which showed strength in price. Also, the breakout was accomplished by a surge in volumes, which increased the reliability of the breakout. The RSI has seen a range breakout, as it surpassed the 60 mark, which was acting as a strong resistance for the last one year in a bullish signal. "We recommend a ‘buy’ rating on Concor in the Rs 559-540 price range for the target of Rs 640 with a stop loss at Rs 525," Modi said.

MCX | Buy | Target price: Rs 940 | Stop loss: Rs 780
This stock has seen a breakout from the long-term sloping trend line. which is a bullish indication for the medium term. After the breakout, the stock saw a sharp rise and broke out of the consolidation of last few weeks, which is a bullish signal for the short-term trend. The stock has been respecting the 50-WEMA, which was earlier offering resistance and now acting as support, suggesting that the recent trough will act as a strong support in the short term. The RSI has formed a bullish reversal with price, which is again a bullish signal and complements the bullish view on the stock. "We recommend buying MCX in the Rs 832-810 range for a target of Rs 940 with a stop loss at Rs 780," said Modi.

Rajesh Bhosale, Technical Analyst, Angel Broking

Colgate Palmolive (India) | Buy | Target price: Rs 1,250 | Stop loss: Rs 1,137
On the Budget day, some FMCG stocks saw outperformance and this stock too put up a strong positive show. Technically, this stock formed a structural higher bottom at Rs 1,120 level, and closed near the previous swing high with a bullish candlestick pattern. "The said pattern was accompanied by a good increase in volume. With the momentum oscillator RSI crossing above its previous swing high, we sense an early sign of a bullish breakout," Bhosale said. Moreover, prices have closed above 20SMA and 50SMA levels, indicating that the short- to medium-term trend of the stock has turned positive.

United Spirits | Buy | Target price: Rs 621 | Stop loss: Rs 557
After the sharp rally seen during the fag end of June from Rs 511 to Rs 596 levels, momentum oscillator RSI entered the deep overbought territory, which resulted in a price correction during the past few sessions. This correction, however, got arrested around the strong support at 200DMA and the prices have resumed the uptrend by forming a bullish candlestick pattern on the daily chart. "At the current juncture, the oscillator has eased off from its higher threshold. As prices showed strength on the Budget day, we sense a fresh leg of upward move on the counter in the near term," said Bhosale.

Vaishali Parekh, senior technical analyst at Prabhudas Lilladher

Kotak Mahindra Bank | Buy | Target price: Rs 1,600 | Stop loss: Rs 1,460
This stock has bounced back from the consolidation period, maintaining a strong base near Rs 1,460, and has moved above the significant 34-WMA (weighted moving average). It has improved the bias with potential to rise further in the coming sessions. The RSI has shown a trend reversal to give a ‘buy’ signal. “With good volume participation witnessed, we recommend a ‘buy’ on this stock for an upside target of Rs 1,600, keeping a stop loss of Rs 1,460," Parekh said.

ITC | Buy | Target price: Rs 315 | Stop loss: Rs 270
The stock has been maintaining a strong base near the Rs 270 mark, consolidating for quite some time, and indicated a positive bias with the RSI showing a trend reversal to give a ‘buy’ signal. "Volume participation has been tremendous on the counter and we anticipate a bounceback in the coming days to see further upward movement. With the chart looking attractive, we give a ‘buy’ rating on the stock for an upside target of Rs 315, keeping a stop loss of Rs 270," said Parekh.

Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in

Equitas Holdings | Buy | Target price: Rs 135 | Stop loss: Rs 117
This counter appears to have made a near-term bottom around Rs 120 after the recent correction from the high of Rs 143, as it has been consolidating around Rs 120 for last eight sessions in almost a horizontal fashion. Sustaining above Rs 117, it can attempt to register a decent pullback rally towards Rs 135. “Positional traders are advised to buy into this counter for the said target with a stop loss below Rs 117 on a closing basis," Mohammad said.

Sonata Software | Buy | Target price: Rs 390 | Stop loss: Rs 346
For the past couple of weeks, this counter appears to be consolidating in a narrow range between Rs 360 and Rs 336 with a positive bias and appears to be on the verge of a breakout. Once it manages a close above Rs 360, it will swiftly head towards Rs 390. "Positional traders should make use of this consolidation phase and buy into this counter for a target of Rs 390. The stop loss suggested for this trade is a close below Rs 346,” said Mohammad.

SMC Global Securities

CESC | Buy | Target price: Rs 830-845 | Stop loss: Rs 740
The 200-day exponential moving average (DEMA) of this stock on the daily chart currently stands at Rs 719.09. It has formed a double bottom on the weekly charts and started moving higher. Apart from this, it has broken out of the consolidation range and managed to close above the same by registering over 3 per cent gains along with good volumes last week, which indicates aggressive buying in the stock.

Muthoot Finance | Buy | Target price: Rs 700-715 | Stop loss: Rs 600
The 200-day exponential moving average (DEMA) of the stock on the daily chart currently stands at Rs 542.81. Short-term, medium-term and long-term biases are looking positive for the stock, as it is trading in higher highs and lows on the weekly chart, which is a bullish signal. “Last week, the stock broke out of the consolidation range and managed to close above the same. So the buying momentum can continue for the coming days," the brokerage said.

(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)