Technical picks: Airtel, SBI Cards, MSTC, Hero and other stocks recommended for near-term gains

SUMMARY

Indian equity benchmarks have taken a breather after breaking a series of records soon after the Nifty50 index clocked its fastest 1,000-point journey. With signs of overheating in the market, traders are on the lookout for fresh opportunities to make money. Analysts have recommended a few stocks -- including SBI Cards, Bharti Airtel and MSTC -- to make the most of the dip to bag solid returns in the near term. Here's a list of stocks that they are betting on:

By CNBCTV18.comSept 17, 2021 12:26:22 PM IST (Updated)

Zee Entertainment: The stock has broken out of a resistance patch of Rs 178-179 on the back of good volumes. There could be a selling patch around Rs 193-194 but the short-term trend in ZEEL remains positive. Traders may look at buying the stock for a target of Rs 200 with a stop loss at Rs 175. (Analyst: Manish Hathiramani, Deen Dayal Investments)

JSPL: The stock has broken a short-term resistance level of Rs 400, and is trading above its short-term moving averages, which is a positive sign. Traders can look at buying for a target of Rs 425 with a stop loss at Rs 397. (Analyst: Shrikant Chouhan, Kotak Securities)

BSE: The stock has made a breakout above the falling channel containing a corrective decline in the last two months, signalling the resumption of an upmove and offering a fresh opportunity to enter. BSE shares are expected to continue the positive momentum and head towards Rs 1,345 level, which would mean an 80 percent retracement of the recent decline. Buying is recommended in the range of Rs 1,220-1,242 for a target of Rs 1,345 with a stop loss at Rs 1,170. (Analyst: Pankaj Pandey, ICICI Direct)

Bharti Airtel: The stock appears to be coming out of a long consolidation phase. On the weekly chart, Bharti Airtel has witnessed a breakout in the ascending triangle formation to resume its upside momentum. The 20-day moving average, around the Rs 640 mark, is expected to act as immediate and strong support with no major immediate hurdle on the upside. Traders may buy Bharti Airtel around Rs 686 for a target of Rs 720 with a stop loss at Rs 670. (Analyst: Santosh Meena, Swastika Investmart)

Infosys: The stock is forming a double bottom at Rs 1,670 on a short-term timeframe. It is also consolidating around its short-term averages. Traders may buy for a target of Rs 1,740 with a stop loss at Rs 1,670. (Analyst: Shrikant Chouhan, Kotak Securities)

Kotak Mahindra Bank: With the banking index consolidating around the 37,000 mark, it looks set to clock an all-time high. There is a good chance that Bank Nifty will catch up momentum soon to cross the 20-day moving average placed at 36,080. Kotak Mahindra Bank is looking very strong to support the index towards an all-time high. The Kotak Bank stock is seeing a breakout of a bullish inverse head-and-shoulder formation on the daily chart. It is expected to head towards the Rs 2,000 level in the near term. A strong demand zone can be seen at Rs 1,780-1,740. Traders can buy the Kotak Mahindra Bank stock around Rs 1,818 for a target of Rs 1,900 with a stop loss at Rs 1,780. (Analyst: Santosh Meena, Swastika Investmart)

Hero MotoCorp: The stock has formed a good base at Rs 2,600-2,650 levels, and broken out of resistance at Rs 2,750 with active volumes. Traders can buy for a target of Rs 2,905 with a stop loss at Rs 2,700. (Analyst: Manish Hathiramani, Deen Dayal Investments)

CARE Ratings: The stock has rebounded after a higher base formation at the lower band of the rising channel since March 2021. Its 20-week exponential moving average is signaling the resumption of an upmove. CARE is expected to head towards Rs 760, which is the 80% retracement of its decline. Buying CARE shares is recommended in the range of 710-725 for a target of Rs 760 with a stop loss at Rs 688. (Analyst: Pankaj Pandey, ICICI Direct)

IGL: The stock has witnessed a breakout from the consolidation range of Rs 500-585 after nearly nine months. Chart patterns along with the overall buoyancy in energy is pointing towards a steady rise ahead. Traders can initiate a buy in the range of Rs 585-590 for a target of Rs 625 with a stop loss at Rs 570. (Analyst: Ajit Mishra, Religare Broking)

MSTC: A strong rally is expected in the public sector enterprises space. It is one area that has not participated in the current bull run, and is expected to gain momentum given the government's focus on asset monetisation. Traders can look at buying MSTC around Rs 303 for a target price of Rs 330 with a stop loss at Rs 290. The MSTC stock has formed a double bottom pattern at its 200-day moving average where it manages to cross all important moving averages with a positive bias. (Analyst: Santosh Meena, Swastika Investmart)

SBI Cards & Payments: The stock has consolidated for 26 weeks against 20 weeks of rally from Rs 770 to Rs 1,139, suggesting a shallow retracement and inherent strength. It is expected to maintain a positive bias and head towards the Rs 1,240 level in the coming weeks. Momentum indicator MACD oscillator has generated a bullish crossover positive bias over the medium term. Buying is recommended in the range of Rs 1,125-1,140 for a target of Rs 1,240 with a stop loss at Rs 1,080. (Analyst: Pankaj Pandey, ICICI Direct)