Havells and Punjab National Bank, 2 stocks to trade in next week

SGX Nifty is trading near 11,990 mark while Nifty closed at 11914.20 (up 0,67%) on Friday. Markets witnessed a strong rally last week, traders must be hoping for the momentum to continue. Rohit Singre, Senior Technical Research Analyst, LKP securities recommends trading in Havells India, Punjab National Bank and Gufic Bio. Havells India is trading near its lifetime highs at a market cap of nearly Rs 45,000 cr. This company is the leader in the electric equipment segment. Many fund managers and HNI’s hold this stock in their portfolio for good returns in the long term as well. Punjab National Bank is trading at a market cap of just over Rs 27000 Cr and is one among the largest PSU Banks. Gufic Bio is trading at market cap of Rs 725 cr and it is near its 52 week high. Since the pharma sector has been in flavor for the past few months due to Covid-19 pandemic, this stock seems to be a good bet for traders.

Firstly, Rohit recommends buy on Havells India at a current market price of Rs 710 with a target of Rs 750 and stop loss below Rs 680. This Stock is trading in a rising channel pattern on a daily chart basis and recently Havells has given fresh breakouts on daily charts with strong volume which hints stock is all set move northwards. Both momentum indicators are well placed in bullish territory as RSI is trading above 50 DMA (Daily moving Average) and MACD (Moving Average Convergence Divergence) also ranging above base line.

Also, Rohit has picked Punjab National Bank from PSU Banking space. One can buy this stock at current levels of Rs 28.9 for target of Rs 31-33 with stop loss below Rs 27. PNB closed on Friday with gains of nearly 4%, strong volume activity was observed in PNB on a daily chart pattern. Stock is again trying to bounce from its previous support zone of 27-26. On a weekly chart basis, stock is in formation of a double bottom pattern if current lows hold. On an intraday time frame basis, stock has given a falling trend line breakout which also shows bullish momentum it is trying to build. Consider above technical setup stock must be bought for trading as the momentum looks extremely good.

Last is a stock from small cap pharma space. Rohit recommends Gufic Bio at current share price of Rs 93 with target of Rs 100 and stop loss below 87. Stock has given a bullish flag breakout on daily as well as on weekly chart which is considered as bullish continuation pattern breakout. Strong volume activity is witnessed on the daily chart at breakout candle. Previously also the stock has given falling trend line breakout on daily chart, so considering multiple breakouts with good volume, one should have a look at this pharma stock too.

(Authored by Rahul Kamdar)