Stocks to buy- Charts suggest BHEL, Bajaj Electricals gearing for up move, shares may rally up to 10%

Stocks to buy: Charts suggest BHEL, Bajaj Electricals gearing for up move, shares may rally up to 10%

Indian equity market benchmark indices were trading flat with some positive bias on Friday. BSE Sensex was up 53 points or 0.1 per cent at 60,351, while NSE Nifty 50 held above 17,950. Analysts at ICICIDirect maintain a positive stance and expect the Nifty to head towards their revised target to CY22 high of 18,350 in coming weeks. However, the move towards 18350 would be in a zigzag manner, and secondary correction is a norm in a bull market. Any temporary breather should be capitalised on as an incremental buying opportunity, the brokerage said. Analysts have picked BHEL and Bajaj Electricals as short-term stock picks, seeing up to 10 per cent upside in two weeks.

Also Read: F&O expiry outlook 25 August: Nifty support at 17830-17765, stay light at higher levels in Bank Nifty

Technical charts show that breakout above the consolidation range is supported by strong volume of more than 8 times the 50 days average volume of 1.2 lakhs share per day, highlighting larger participation at the breakout area. So far this year, the stock has fallen around 4 per cent. However, analysts see around 5 per cent potential rally in 14 days.

BHEL: BuyBuying range: Rs 54-56 | Target: Rs 62 | Stop Loss: Rs 52

Capital Goods space has relatively outperformed the broader market and has retraced its preceding four-months corrective phase in faster time indicating end of correction and resumption of primary uptrend. Within the midcap capital goods stocks, ICICIDirect analysts remain positive on Bharat Heavy Electricals (BHEL) as it has registered a breakout above the bullish Cup & handle like formation signalling resumption of up move and offers fresh entry opportunity. “The stock has recently rebounded taking support at the 20 days EMA, currently placed at Rs 52.50 levels, signalling overall positive bias. We expect the stock to head towards Rs 62 levels in the coming sessions being the 80 per cent retracement of the December 2021 to June 2022 decline (Rs 66-42),” the brokerage said. The stock has tumbled 8 per cent so far in 2022, but analysts see up to 10 per cent upside in two weeks.

Also Read: F&O expiry outlook August 25: Good time to book profits, market in overbought zone with support at 17800-17700

(The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)