Technical Picks: Nestle, Balrampur Chini, V-Guard and other stocks analysts are betting on

SUMMARY

Dalal Street has taken a breather after a swift surge in the Nifty50 to unprecedented levels that saw many market participants set sights on Mount 18,000. Is this a sign of overheating in the market? Are there any trading opportunities at this juncture? Which stocks to buy now? Analysts suggest going long on select stocks -- including Zee Entertainment, Nestle, Balrampur Chini and V-Guard -- to make most of the current trend in the short term.

By CNBCTV18.comOct 5, 2021 10:37:53 AM IST (Published)

Zee Entertainment: The stock appears to be correcting from highs following a spectacular rally in September. In the corrective phase, the level of Rs 295-290 should act as major support. Traders can buy Zee Entertainment Enterprises shares for a target of Rs 325 with a stop loss at Rs 284. (Analyst: Shrikant Chouhan, Kotak Securities)

Triveni Engineering: The stock appears to be in a strong uptrend having formed a strong base at a cluster of important moving average.It is witnessing a breakout of the bullish pennant formation to resume its uptrend. One may buy the Triveni Engineering stock at the current level for a target price of Rs 209 with a stop loss at Rs 182.5. (Analyst: Santosh Meena, Swastika Investmart)

V-Guard: The stock recently formed a base after a falling channel breakout. With the base formation now complete, the stock has begun its next upmove. Key daily moving averages are now acting as strong support on the downside for V-Guard, which has formed a popgun pattern on the daily chart and is witnessing follow-through action on the upside. The daily momentum indicator is turning in favour of the bulls. One can look at buying V-Guard shares at the current levels for a target of Rs 280-290 with a stop loss at Rs 255. (Analyst: Gaurav Ratnaparkhi, Sharekhan by BNP Paribas)

The stock is available at 38 percent retracement of the entire rally from Rs 17,300 to Rs 20,600. Technically, this should act as major support for Nestle. One can look at buying Nestle for a target of Rs 20,500 with a stop loss at Rs 19,200. (Analyst: Shrikant Chouhan, Kotak Securities)

Balrampur Chini: The stock has seen a bullish breakout from a consolidation that stretched to weeks. Balrampur Chini has support at its 20-week moving average, where it has formed an inside bar on the weekly chart and broken out. The short-term momentum indicator has started a new cycle on the upside, which is in line with bullish price action. One can buy Balrampur at the current market price for a target of Rs 400-425 with a stop loss at Rs 370. (Analyst: Gaurav Ratnaparkhi, Sharekhan by BNP Paribas)

Apcotex: The stock appears to be in a strong bullish momentum following a breakout of the bullish flag formation. It is respecting its 20-week simple moving average with immediate support at Rs 343. One can buy Apcotex shares at Rs 426 for a target of Rs 460 with a stop loss at Rs 405. (Analyst: Santosh Meena, Swastika Investmart)

Fortis: After some correction in the recent past, the stock looks set to start its next upmove. Fortis Healthcare has scaled above the key day moving averages, suggesting that the bulls are having an upper hand. Structurally, the stock is set to form an impulse on the upside. Buying is advised at the current levels for a target of Rs 290-303 with a stop loss at Rs 265. (Analyst: Gaurav Ratnaparkhi, Sharekhan by BNP Paribas)

Sun Pharma: The stock is witnessing a breakout with a bullish flag formation following two months of consolidation. It has relative strength to the Nifty Pharma index, where it has created a strong base in a cluster of 20- and 50-day moving averages. Momentum indicators RSI and MACD are giving positive signals. Pharma stocks may see some inflows amid profit booking in IT stocks and uncertainty in the overall market. It was not able to cross the Rs 800 mark in the past two months due to heavy call writing at the corresponding strike price but call writers are appearing to be on the back foot now. One may buy Sun Pharma shares at the current levels for a target of Rs 870 with a stop loss at Rs 800. (Analyst: Santosh Meena, Swastika Investmart)