Indian market closed flat for the week ended December 24, but small and medium stocks performed below par and closed lower in the short holiday week.
The S&P BSE Sensex closed below 47,000 while the Nifty50 closed above 13700. Experts see that as we approach the end of the year, momentum may slow due to the holiday season and we advise investors to keep limiting the actions.
The new strain of Coronavirus generated volatility in the global stock market, but it recovered well by assuming lower risks in the future and the start of the vaccination and stimulus of the United States $ 900 billion.
The market may remain volatile prior to the monthly expiration of December 31, as investors will roll over positions from the December series to the January 2021 series.
"Over the next week, concerns about the new virus case will remain in the limelight alongside developments related to the Brexit deal," Vinod Nair, head of research at Geojit Financial Services.
He said that "investors should stay focused on the quality and measurement sectors and also watch the trend of FII flows, which is the main factor in the recent rally, and do not expect bumpy data and announcements to be released next week" .
On a net basis, foreign investors bought Indian stocks during December, reaching a value of $ 7.5 billion, even after the largest lifetime inflows experienced in November 2020, according to the Cuttack report.
Here's a list of the top 10 business ideas from experts for the next three to four weeks:
Expert: Summit Chavan, Technical and Derivatives Analyst at Angel Broking
Biocon | Buy | LTP: 481.25 rupees | Target price: Rs 518 | Stop Loss: Rs 458 | 7% higher
Last week's recovery was driven primarily by prominent defense issues, with drugs being one of them.
Due to the clever movement of the past week, many meters of this space have set new records.
Biocon was not late as we saw a good volume breakout last Wednesday from the multi-resistance zone around Rs 480.
A small pullback the next day made it even more attractive when it came to the risk-reward ratio.
Looking at the up sloping RSI oscillator, we expect the stock to do a very good job after entering uncharted territory.
IndusInd Bank | Sale | LTP: 850.95 rupees | Target price: Rs 805 | Stop Loss: Rs 874 | Disadvantage 5%
Shares of these private banks have also performed significantly poorly in pre-COVID times. However, we have seen some recovery in recent months, along with the market in general.
Last week, the stock experienced good profit-taking, which was due to the recent rally.
The market performed well after last Monday's setbacks, but this action was not strong enough to recoup its losses.
The daily chart shows a bearish crossover in the combination of two major short-term moving averages, namely 5 and 20.
We can also see more fixes in the coming week.
The Expert: Gaurav Garg, Head of Research, CapitalVia Global Research Limited.
Hindustan Unilever Limited: Purchase | LTP: 2,399 rupees | Activator: Rs 2,410 | Target: 2545 rupees | Stop Loss: Rs 2,303 | 6% higher
The stock has formed a bullish flag pattern, and if the stock somehow continues above Rs 2410, the stock may lead to positive momentum. The stock has witnessed a significant increase in volumes in recent days, especially in the stock of consumer goods.
The stock is showing strong momentum and in the next week, the stock could extend towards higher living standards.
ICICI Lombard General Insurance Company Ltd: Purchase | LTP: 1,484 rupees | Activator: Rs 1,495 | Target: 1,605 rupees | Stop Loss: Rs 1,442 | 8% higher
The stock has formed a bullish flag pattern on the daily charts, and if the stock somehow continues above 1495, it could lead to positive momentum for the stock.
The stock has been trading in a consolidation range for the past few weeks, insurance stocks have gained momentum in recent days, and the ICICIGI may show a strong bullish move in the weeks ahead.
Expert: Shabir Keumy is Head of Technical Research at Narnolia Financial Advisors Ltd
Federal Bank: Buy around Rs 63 | Target: 75 rupees | Stop Loss: Rs 55 | Gradient: 20 percent
The stock has maintained a solid footing near the 55-57 rupee area, and the current sustainability above all major averages has improved the bias by forming a positive candle on the daily chart with the lows of three consecutive days.
The Relative Strength Index has also indicated a trend reversal to indicate buy. As the chart looks attractive, we suggest buying this stock around Rs 63 for a target of Rs 75 and 78, while keeping the stop loss at Rs 55.
Indian Oil Corporation: Buy Around Rs 88 | Target: 105 rupees | Stop Loss: Rs 83 | Profit: 19 percent
The stock saw a drop from Rs 97 to Rs 84. Since then, it has been making a higher low and the higher peaks suggest a bullish swing from the lower levels. On the weekly chart, the stock has formed a hammer candlestick reversal pattern.
Volumes were high at lower levels, indicating a build-up in inventory. The MACD made a positive crossover with its average above the zero equilibrium level on the daily chart. Therefore, the shares can be bought at levels of around Rs 88 with a stop loss below Rs 83 for a target of Rs 98 and Rs 105.
Sun Pharmaceutical: Buy around Rs. 585 | Target: Rs 640 | Stop Loss: 550 rupees | Gradient: 10 percent
This counter appears to have posted a clear gap with a close above the multi-week consolidation area on the weekly line chart. An appropriately sized strong bullish candle shows more bullish movements in the coming sessions.
If the stock closes above the Rs 595 levels, it should eventually rally towards the target of breaking the initial Rs 640 range.
Currently, positioned traders are advised to buy around Rs 585 at this counter for a target of Rs 640, with stops below Rs 550 on a closing basis.
Expert: Ashis Biswas is Head of Technical Research at CapitalVia Global Research
REC: Buy more than Rs 144 | LTP: 134 rupees | Target: Rs 168 | Stop Loss: Rs 124 | 25% higher
This action broke the trend line and experienced a fair amount of correction. It is trading above its major moving averages.
A break above the Rs 144 level will add more bullish momentum to the stock. We recommend starting a long position above Rs 144 with a stop loss of Rs 124, Rs 168.
HEG: Buy more than Rs 951 | LTP: 885 rupees | Target: 1,160 rupees | Stop Loss: Rs 785 | 21% higher
This stock has formed a kind of reversal pattern on the daily charts and is trading above its major moving averages. It is also supported by a breakout of the trend line.
Any break above the Rs 951 level will add more bullish momentum for the stock. We recommend starting a long position above Rs 951 with stop loss at Rs 785, Rs 1,160.
Brokerage company: SMC Global Securities Ltd
HSIL: Buy | LTP: 110 rupees | Target: 132 rupees | Stop Loss: 100 rupees | 20% higher
The stock closed at Rs 110.80 on December 24, 2020. It reached its 52-week low of Rs 32.70 on March 25, 2020 and its highest level in 52 weeks. 114.85 on Dec 24, 2020. The 200-day exponential moving average (DEMA) per share on the daily chart is currently at Rs 73.22.
Short, medium and long-term biases look positive for the stock as it trades at higher highs and lows on the charts.
Apart from this, the "bull flag" pattern formed on the weekly charts and provided a breakout of the pattern along with the large trading volumes, so the buying momentum may continue for the next few days.
Therefore, one can buy in the 108-110 range for the 128-132 level bullish target with a stop loss below 100. The time horizon could be in the 1-2 month range.Also Read: 5 sectors that will outperform in 2021 – Business2Business