Technical picks: Top 10 stocks that could give 10-26% returns in next 12 months

Indian market touched fresh record highs on the Muhurat Trading day. The S&P BSE Sensex is now comfortably trading above 43,000 while Nifty50 came close to 12,900 levels.

Experts are of the view that upside remains limited for the benchmark indices but there will be plenty of stock-specific action. Multi-year bull run has started as the economy is showing signs of improvement.

In an analysts' poll conducted by Moneycontrol, as many as 50 percent of the respondents said Sensex will trade above 43,000 while 37.50 percent expect Sensex to see some consolidation and trade in the range of 42,273-43,000.

For Nifty, as many as 62.50 percent of respondents expect it to trade between 12,400 and 13,000 for Samvat 2077. The remaining 37.50 percent expect Nifty to trade above 13,000.

“In our sense, this is just the beginning of a ‘Mega Multi-year Bull Run’. With a broader view, if we take reciprocal retracement of the entire fall from previous high to march lows, we have just crossed 100% and the next destination is around 127% retracement that comes around 13700 – 13800,” Sameet Chavan, Chief Analyst Technical and Derivatives, Angel Broking Ltd told Moneycontrol.

“If things fall in place perfectly for the bulls around the mentioned milestones, we never know, this projection can even get extended towards the ‘Golden Ratio’ of 161% placed around 15000- 15,300,” he said.

Chavan further added that we hope that our hypothesis turns into a reality by the next SAMVAT and now, we take this opportunity to wish you all a Happy and most importantly a healthy Diwali.

Here is a list of 10 stocks given by various experts that could give 11-26% return in the next 12 months:

Experts: Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities

Investors can buy the stock on dips towards Rs 1097, and the rest when it touches Rs 960 for an upside target of Rs 1400 in the next 3 months. A stop-loss can be placed at Rs 850.

The stock is in a completely new impulse/trending wave. It has formed a strong breakout continuation pattern and weekly charts suggest that the uptrend wave is likely to continue in the medium-term as well.

The strategy should be to keep buying on dips at crucial supports. Investors can buy 50% at current levels and balance at 960. For trading purposes, a final stop loss can be placed below Rs 850. On the upside, the next wave should end between Rs 1,400-1440 levels.

Cipla: Buy on dips| Target: Rs 840| Stop Loss: Rs 650| LTP: Rs 746| Upside 12%

The stock has formed a “Cup with Handle” formation on the monthly charts. Investors can buy 50% at current levels and balance at Rs 700. A final stop loss can be placed below Rs 650. On the upside, it could move towards 840 levels in the next 3 months or so.

Britannia Industries Ltd: Buy| Target: Rs 4050| Stop Loss: Rs 3000| LTP: Rs 3528| Upside 15%

Britannia Industries into a fresh technical break out on long term charts. Currently, it is into throwback mode to retest earlier major resistance.

Investors can buy 50% at current levels and balance at Rs 3200. They can keep a final stop loss at 3000. On the upside, the rally could extend up to 4000 levels.

Expert: Pritesh Mehta, Lead Technical Analyst - Institutional Equities, YES SECURITIES

Siemens: Buy above Rs 1320| Target: Rs 1520| Stop Loss: Rs 1250| LTP: Rs 1370| Upside 11%

From April to September 2020, Siemens consolidated within a structure of identical tops and ascending bottoms. This month, the stock broke above the upper boundaries of the consolidation zone.

On P&F chart, the structure of rising bottom triple top buy, triple top buys, and bullish turtle breakout is seen. Series of bullish anchor columns and positive follow-through is in place since May 2020.

Siemens is moving higher with the support of its objective trendline. We expect a continuation of the recent uptick. Investors can buy Siemens above Rs1,320 with stop loss below Rs1,250, and a 12-month target could be placed at Rs1,520.

Adani Enterprises: Buy on dips| Target: Rs 450| LTP: Rs 371| Upside 21%

On the broader charts, the stock has engulfed the decline seen in February & March of 2020 and in the process, it broke above the barrier (i.e. hurdle zone of Rs225 i.e. three-digit Gann number) in place since 2018.

The shift of range on the upside has led to a strong momentum rally towards Rs361. Currently, it has taken a pause around the three-digit Gann number of 361, which indicates hiatus in an ongoing uptrend.

Such a phase in an uptrending counters tends to result in the resumption of prevailing rally. Corrective move towards Rs335-340 should be considered as a buying opportunity. On the upside, the stock has the potential to rally towards Rs450 zone.

Crompton Greaves Consumer: Buy| LTP: Rs 299| Target: Rs 360| Stop Loss: Rs 250| Upside 20%

On the broader horizon, Crompton had been moving in a range with point of polarity zone coming to its rescue back in March 2020 i.e. around Rs190-200.

Thereafter, pullback had been gradual and the stock eventually broke past its big tall red bar in September 2020. Sustenance above Rs300 would result in a shift of range on the upside.

It has upside potential to stage a rally of more than 20% with multiple support seen around Rs250. On P&F chart, Bear Trap reversal and a bullish turtle breakout is seen i.e. multiple bullish formations in an uptrending counter.

Tata Consumers Products: Buy| LTP: Rs 516| Target: Rs 593| Stop Loss: Rs 460| Upside 15%

Tata Consumers went through a phase of a sharp decline in September & October 2020 as it corrected from the peak of Rs592 and recorded a swing low of Rs459. The same coincided with the 50% retracement mark of the entire move from the May 2020 low.

The confluence of support halted the declining spree. The pattern of Bear trap reversal and a bullish anchor column on the P&F chart at the support zone, indicates more legs on the upside.

Currently, it is consolidating at the bottom, breakouts from such patterns in up trending stocks tend to provide swift upmoves. We expect a rally of 12-15% in the medium-term with support placed around the Rs460 zone.

Tata Motors: Buy| Target: Rs 170| Stop Loss: Rs 127| LTP: Rs 148| Upside 15%

Tata Motors is attempting to break out from a phase of sideways correction. In the month of September 2020, the stock marked a low around the three-digit Gann number of 121 and thereafter has been gradually moving higher.

Despite moving in a narrow range, it is holding above the support of its rising trendline. In such scenario, traders should always use any phase of consolidation and breakout from the same to build longs.

From Gann perspective, whenever a confluence of support is defended, the pullback tends to be excessive. Pattern of bullish anchor columns and follow-through is seen since August 2020.

A move above Rs143 would result in ABC breakout with a potential target of Rs170. Support is seen around Rs127.

Amara Raja Batteries: Buy| Target: Rs 950| Stop Loss: Rs 730-735| LTP: Rs 824| Upside 15%

After a prolonged downtrend, the stock consistently trended higher from its March month’s low. In September, the stock has witnessed a positive break above the long-term supply line which, implying a positive outlook for the stock.

It is trading around the peak of January 2020. It is moving higher along with the support of its 20-Weekly MA since June 2020, wherein every pullback towards this critical moving average has resulted into buying opportunity.

Sustenance of two-digit Gann number of 81(0) would result in a shift of range on the upside.

A pullbacktowards Rs780-770 zone should be considered as a buying opportunity as the stock could gradually trend higher towards 950. Levels of Rs730-735 are likely to act as an important support zone.

Brokerage Firm: HDFC Securities

CEAT: Buy| Target: Rs 1230-1425| Stop Loss: Rs 922| LTP: Rs 1130| Upside 26%

The stock price has surpassed the crucial resistance of its previous top placed at 1076 on the monthly chart. The stock price has also taken out the resistance derived from the 50 month EMA, placed at 1031.

From the Month of April to Sep 2020, Volume rose along with the gradual price rise. In the month of October 2020, stock price has risen with momentum and broke out from the long-term resistance.

The Monthly Indicators and Oscillators like DMI, MACD and RSI have shown fresh buying signals on the charts. Auto Sector has done exceptionally well since March 2020 bottom. Auto Ancillary space is also expected to continue their outperformance in the coming months.