Trading Guide: Asian Paints among 7 stock recommendations for Friday
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, ETMarkets.com|
1/8
Stock ideas
The domestic equity market on Thursday snapped the five-day losing streak as benchmark Sensex recouped its lost ground and closed 78 points higher on fag-end value buying in banking, energy and financial stocks. A positive opening in the European market boosted investor sentiments even as clouds hovered over the health of the global banking system amid Credit Suisse woes and bank failures in the US.
Nifty at the close ended just shy of 17,000 level.
“The larger degree lower tops and bottoms continued in the Nifty as per daily chart and Thursday's swing low of 16,850 levels could be considered as a new lower bottom of the sequence. Further, upside from here could confirm this reversal pattern and that could possibly open a sustainable upside bounce for the short term. A decisive move above the immediate hurdle of 17,200 is expected to bring a strong bounce in the market ahead. Immediate support is at 16,850 levels,” said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
The stock after the decent correction from Rs 3,580 levels has bottomed out and consolidated near the long-term trendline support zone of Rs 2,700 levels and has been in a range-bound zone for quite some time with current bias once again improving moving past the significant 50 EMA level of Rs 2,855. The RSI is well placed and is on the rise, indicating strength and has got much upside potential from here on.
(Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher)
The stock has made a strong support base near the Rs 730-735 zone and has indicated a pullback to improve the bias to some extent and further rise is anticipated in the coming days. RSI indicator is also regaining from the highly oversold zone and is on the rise with a trend reversal to signal a buy.
(Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher)
The stock has witnessed a decent erosion from the levels of Rs 2,900 and has bottomed out with consolidation near the long-term trendline support zone of Rs 2,250 levels gathering strength. With decent volume participation and chart looking good, we recommend buying this stock.
(Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher)
The stock has given a breakout of an ‘Ascending triangles’ on the daily charts with a bullish candlestick. The overall structure of the counter is very bullish, as it is trading above all of its important moving averages. In addition, the technical indicator Ichimoku cloud suggests that the price is trading above the conversion & Baseline, which shows a bullish trend on the counter.
(Ashish Katwa, Research Analyst, Bonanza Portfolio)
The stock has given a breakout of a triangle pattern on the daily charts with bullish candlestick. The MACD indicator suggested a positive crossover in a three-hour timeframe.The momentum oscillator RSI (14) is showing strength by sustaining above 60.
(Ashish Katwa, Research Analyst, Bonanza Portfolio)
Today, the price of HUL temporarily broke below the support Rs 2,400-2,380 and price promptly reversed from the support zone. This is a break-out failure. Price movement since November 15 has also been showing a bullish Butterfly Harmonic pattern. The stock is at a major support zone and an attractive buying proposition at current levels.
(Manish Shah. A SEBI Registered Investment Advisor)
ETMarkets.com
8/8
BHEL: Buy | Target: Rs 105 | Stop Loss: Rs 68
Stocks related to capital goods, power sector, power equipment are in a serial uptrend on the weekly time frame. The underlying trend remains up. BHEL has completed its intermediate-term trend as we see that price has shown a breakout from a down sloping wedge pattern. At current levels, BHEL offers a potential to see a rally to Rs 92 and above that to Rs 105. Keep a stop below Rs 68. Hold for at least 6-8 weeks.
(Manish Shah. A SEBI Registered Investment Advisor)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)