Indian markets to trade with positive bias this week; These 6 stocks can be best pick

Indian equity benchmarks ended the last week on a flat note after witnessing a roller coaster ride throughout the week. On Friday, the benchmark Sensex index finished at 34,924.87 above nearly 262 points or 0.76%, whereas the Nifty 50 ended at 10,605.15 higher by 91 points or 0.87%. The end of the week led by rally in private sector banks and information technology stocks followed by select FMCG & PSU banking counters. Further, the Dalal Street got boosts from slight rebound in the global peers, rupee recovering from its 16-month low against the dollar and international crude oil prices dropping below $80 per barrel.

For this week, analysts at Karvy Stock Broking said, “We expect the markets to trade with positive bias and may mirror the global market movement coupled by volatility of the key commodity prices in the international markets. Medium to long term investors may look to invest in beaten-down stocks which have sound fundamentals, have no debt and are free with global commodities movement.

They added, “We remain bullish on the consumption story in the India and recommend investors to accumulate stocks from FMCG, consumer durables and auto sectors on any declines.”

According to Karvy, below mentioned stocks can be best pick for investment.

Bharat Financials

After witnessing a swing low of Rs 1113, stock price witnessed a smart recovery in the last week. On the momentum setup, 14- period RSI holding above the equilibrium level, approaching overbought territory reaffirms underlying strength in the counter. At the current juncture, the stock provides an opportunity to enter as it may potentially move higher.

Hence, Karvy recommends Smart Traders to initiate Long position near Rs 1160 levels for the target of Rs 1220 keeping a stop loss below Rs 1110 levels.

Godrej Consumer Products

Technically, stock price is holding above its 21 & 50-DEMA which is currently placed near Rs 1098 & Rs 1089 levels respectively. On the momentum setup, 14-period RSI holding above equilibrium level, approaching overbought territory reaffirms underlying strength in the counter.

At the current juncture, stock provides an opportunity to enter as stock may potentially move higher. Hence, it is being recommended to Smart Traders for initiating Long position near Rs 1128 levels for the target of Rs 1175 keeping a stop loss below 1088 levels.

JSW Steel

In the first week of May’18, the stock has made an all-time high of Rs 342.75 post which it witnessed profit booking and eventually entered into a consolidation mode during the last couple of days. After witnessing a swing low of 307, stock price witnessed a smart recovery in the last week.

On the momentum setup, 14- period RSI holding above the equilibrium level, approaching overbought territory reaffirms underlying strength in the counter. At the current juncture, the stock provides an opportunity to enter as it may potentially move higher. Hence, it is recommended to  Smart Traders for initiate Long position near Rs 325 levels for the target of Rs 340 keeping a stop loss below Rs 317 levels.

Maruti Suzuki

On the daily charts, the stock is hovering around the higher end of the consolidation zone of Rs 8400- Rs 8585 levels, any breakout on the charts can take the stock somewhere close to Rs 8770 levels. On the RSI front, the 14 day RSI is trading above the 9-DEMA which suggests that the positive momentum on the charts is likely to continue.

Karvy has set a target price for Maruti at Rs 8,610.90 per piece.

MCX

On a close observation on weekly charts, the stock has formed a classic bullish inverted head and shoulders pattern and the confirmation is also given, indicating a start of new leg of up move for short to medium term.

Even on the derivative front, the current month series has witnessed short unwinding while its next month series has witnessed a huge long built up. Hence, buy with stop loss below the immediate intraday major swing lows of Rs 760- Rs 763 and may look for target of previous major decline starting point.

Page Industries

On technical charts front, the stock has given breakout from last one month downward sloping channel with huge volumes, indicating start of fresh leg of up move.

On broader chart of last three months, the stock has given breakout from a bullish flag pattern, indicating more upside is likely in the counter. Even on the derivative front, the current month and next month series also suggests bullish view. Hence, buy with stop loss below the current leg of up move of Rs 23400 and may look for target of 63% extension of the previous leg up move which comes around Rs 26500.

Therefore, in case if you are looking to make an investment in equity markets the above mentioned stocks can come as a best pick.