Technical stock picks: Marico among 6 stocks that can rally up to 19%
By
, ETMarkets.com|
1/7
Tech Picks
So far in 2023, Nifty has fallen over 4% amid weak global cues. Also, the collapse of Silicon Valley Bank put a slight negative sentiment on the markets. However, a host of analysts shared their tech views on particular stocks for the near term. These stocks belong to various sectors such as energy, household appliances and consumer durables. Here is a list of 6 tech picks from various analysts:
iStock
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Buy Swan Energy between Rs: 295-299 | Stop Loss: Rs 270 | Target Price: Rs 350 | Upside: 19%
Swan Energy has corrected from an intermediate high of 379 touched in January 2023. The stock recently found support at the 247 level which also coincides with the 50-week SMA, indicating it is a strong support area. The stock has since then rallied higher and made higher tops and higher bottoms over the last one week.
Technical indicators are giving positive signals as the stock is trading above the 200-day EMA and 20-day SMA. And daily momentum readings like the 14-day RSI are in rising mode and not overbought.
Intellect is in a short-term downtrend as it has been making lower tops and lower bottoms for the last few weeks after touching a high of 474. This week, the stock reacted from the 20-day SMA and broke the recent support of 442, indicating the downtrend looks set to continue.
Technical indicators are giving negative signals as the stock has made a negative MA crossover as the 20-day SMA has recently moved below the 50-day SMA. Momentum readings like the 14-day RSI too are in decline mode, which implies a potential for more downsides.
The stock witnessed a buying interest in the week gone by and showed a relative outperformance in the last couple of sessions in spite of selling pressure seen in the broader markets. The RSI oscillator has given a positive crossover indicating a positive momentum while the prices have also surpassed its ’20 DEMA’ hurdle. We expect the momentum to continue in the near term.
The stock has seen a decent up move in the last couple of months and the momentum readings were in the overbought zone. In Friday’s session, the prices breached its ‘20 DEMA’ support and the RSI oscillator also gave a negative crossover. The volumes were also relatively good along with the price correction and hence, the stock could see further correction in the short term.
Since last month’s price action in Marico has seen a very narrow range. The price is hovering just above its support zone at 480-470 for the last several weeks. In the last 2 weeks, we see a change in sentiment in the counter as several candlesticks show a tendency to close around the high of the day. Over the last one year the price has ranged from 560-480. If we draw a trendline from the recent highs, the price is on the verge of breaking above the trendline. Marico is a solid stock ideal under the circumstances.
Price action in Berger Paints shows classic signs of a change in trend. Price bounces off historical support at 540-520. Price breaks out of a falling trendline and also there is a confirmed breakout of an inverse Head and Shoulder trend reversal pattern. Paint stocks have an inverse relationship with the prices of crude oil. Crude oil is at its lows and paint stocks could see a major revival from here. Price has also crossed above its 50-day moving average and it is just below its 200-day moving average.
(Manish Shah, Investment Advisor)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)