Tuesday was the second day in a row that Indian stocks traded in the green, as both global and local emotions were getting better. The sectors that did the best were real estate and fast-moving consumer goods (FMCG). Real estate gained more than 3%. People all over the world are feeling better because they think the US central bank will hold off on raising interest rates at its next meeting.
Here are the stock picks for Wednesday:
ICICI Bank: Buy | CMP: Rs 943.55 | Stop Loss: Rs 937 | Target: Rs 955
On a daily time frame, the bank has seen selling pressure at higher levels, a pullback up to Rs 932 levels, and then a stabilisation at Rs 942–937 levels. Today’s close is higher than the last four days’ close, and volume backs up the move to the upside. The price is moving above both the fast (21) and slow (50) EMAs, which is a sign of a good trend.
Abbott: Buy | CMP: Rs 22155.70 | Target: Rs 22,880 |Stop Loss: Rs 21,790
Abbott India has broken out of a range on a daily time frame, and the stock has finished above its 5-week close, which shows that people are generally interested in buying the security. The price is moving above both the fast (21) and slow (50) EMAs, which shows a move in the right direction.
Bombay Burmah Trading Corporation: Buy | CMP: Rs 1052.5 | Target: Rs 1220 | Stop Loss: Rs 980
So far this week, the chart of Bombay Burmah Trading Corporation (BBTC) on a weekly time frame shows a sharp move up. After staying in a narrow band for the past month, the stock price broke out to the upside at Rs 1,000 on Tuesday and is now moving higher.
The stock price is going up now, which is in line with a clear break of a long-term trend line that goes down around Rs 1020. So, a steady move up from here could give the stock price a big boost in the near future. Volume has started to grow, and the 14-week RSI shows a positive trend.
Prism Johnson: Buy | CMP: Rs 129.50 | Target: Rs 152 | Holding period: 3-5 week| Stop Loss: Rs 121
The weekly picture demonstrates a significant increase in the stock price of Prism Johnson over the previous three weeks. The stock price has broken through the important barrier of a downward-sloping trend line and is now in a correction. This is what has happened so far this week. Based on the chart for the weekly time frame, we see good trends like higher tops and bottoms. In the last few weeks, there has been a sharp move up, and the weekly 14-period RSI has crossed above key upper 60 levels.
Olectra Greentech: Buy near Rs 760-Rs 820 | Target: Rs 1200 | Stop Loss: Rs 700 | Holding period: 8-10 months
After settling in the range of Rs 580–720 odd levels for almost three months, the price went on a strong upswing to break out of the range and hit a 52-week high of Rs 917 levels.
Giving a return of almost 25% from the exit mark of Rs. 720 shows that bulls had control over the price.
Trading volumes were also at their best, which suggests that prices will go up in the short run. The price is currently moving close to its all-time high of Rs. 940, where it could meet resistance. Profit-taking could cause the price to drop to support around Rs 820 or so. After that, there could be a new upswing that leads to new highs around Rs 1050–1200.
The stochastic oscillator is also going up, and the volume is going up, both of which point to a move up with little risk of going down.
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