Sensex and Nifty 50 plunged over 3.5 per cent on Monday as India recorded a massive surge of 1.7 lakh COVID-19 cases in the last 24 hours. Moreover, fresh curbs and partial lockdown were imposed in different parts of the country to contain the spread of the deadly virus. India VIX, the volatility index jumped up 16.33 per cent to 23.02 levels on Monday. This fear gauge of domestic markets fell below 20 last week. Research and brokerage firm Axis Securities has recommended four technical stocks to buy this week, with up to a 16 per cent rally.
Indraprastha Gas Limited: Analysts at the domestic research firm see 5-8 per cent rally in Indraprastha Gas Ltd stock in a buying range of Rs 538-528 apiece. On the daily chart, the stock has decisively broken out its past five weeks consolidation range at 532 levels which signals a strong come back of bulls. The daily and weekly strength indicator RSI is in bullish mode which supports rising strength as well as momentum. The brokerage firm has indicated an upside of 560-575 levels.
Bombay Burmah Trading Corporation Ltd: The brokerage firm has suggested buying range of Rs 1,240-1,216 with a stop loss of Rs 1,1195. It sees an upside of 6-10 per cent with a target price of Rs 1,300-1,350. Analysts said that the weekly strength indicator RSI and the momentum indicator Stochastic both are in bullish mode along with positive crossover has observed an upward breakout supporting rising strength.
India Cements: Axis Securities has recommended to buy India Cements stocks, in a range of Rs 185-182 with a stop loss at Rs 172. It has suggested a holding period of three to four weeks and sees an upside of 12-16 per cent. “The stock is well placed above its 20, 50 and 100 day SMA which supports bullish sentiments on a medium term time frame,” analysts said. Axis Securities noted that the daily and weekly strength indicator RSI has observed a positive crossover and quoting around 50 mark which supports rising strength. “This indicates an upside of 206-212 levels,” it added.
Bajaj Consumer Care Ltd: The domestic brokerage firm sees a rally of 10-13 per cent in the stock with a target price of Rs 310-320. Analysts said that currently stock is well placed above its 50, 100 and 200-day SMA which reconfirm the bullish thesis. The daily strength indicator RSI is in bullish mode and placed above 50 mark which supports rising strength. The brokerage firm has suggested a buying range of Rs 284-280 with a stop loss at Rs 268.
(The stock recommendations in this story are by the respective research and brokerage firm. Financial Express Online does not bear any responsibility for their investment advice. Please consult your investment advisor before investing.)