5 stocks that are flashing BUY signals on tech charts

Domestic equity indices ended the week with modest gains even as the global markets struggled, thanks to buying in index heavyweight RIL and IT stocks.

We may see some recovery in the banking pack ahead but traders should limit their positions mainly to the sectors which are attracting consistent buying interest

Ajit Mishra, VP – Research, Religare Broking.

Here are five stocks that analysts believe can offer solid gains over 2 weeks time:

1.HDFC Life | BUY | Target Price: Rs 640


This counter appears to have resumed its upmove with a breakout above its 20-day old descending channel. Moreover, this breakout is accompanied with a decent consolidation around Rs 567 levels with a double bottom formation. Hence, sustaining above Rs 587 levels, it can be expected to target recent swing highs. Therefore, positional traders are advised to buy into this counter with a stop of Rs 584 and look for an initial target of Rs 640.

2.Hero Moto | BUY | Target Price: Rs 3,100


After retracing 62% of its last leg of rally from the lows of Rs 2,620 to Rs 3,181 levels, this counter appears to be stabilising with a near term bottom in place at the recent low of Rs 2830 levels. Hence, sustaining above the said levels, this counter can be expected to head higher toward Rs 3,100 levels. Therefore, positional traders shall buy now and can add further on dips in the zone of Rs 2,900-2,850 levels and look for a target of Rs 3,100. Stop suggested for the trade is Rs 2,800 levels.

3.Colgate Palmolive | BUY | Target Price: Rs 1,465


This counter appears to have resumed its short term rally as it made a strong move in Thursday’s session from the lower end of its larger consolidation range present between Rs 1,340-1,470 levels. Hence, sustaining above Rs 1,360 levels on closing basis, it can slowly head towards its upper end of the sideways range. Therefore, positional traders should buy into this counter with a stop below Rs 1,359 on closing basis and look for a target of Rs 1,465.

4.Deepak Nitrite | BUY | Target Price: Rs 800


The stock price has broken out from the Downward slopping trend line on the daily chart with rise in volumes. The stock price is forming bullish higher tops higher bottom on the daily and weekly chart. The primary trend is positive where stock is trading above its 200-day SMA and EMA. +DI is placed above the -DI while ADX line is placed above 25 level indicating momentum in the uptrend. Therefore, the analyst recommends buying Deepak Nitrite at CMP and average at Rs 720 for the target of Rs 800, keeping a stop loss at Rs 705.

5.Tata Elxsi | BUY | Target Price: Rs 1,330


The stock price has broken out on the daily chart by closing above the resistance level of Rs 1,210 level with higher volumes. The trend of the stock is positive where it is trading above all its important short and long-term moving averages. The RSI oscillator is placed above 70, indicating strength in the stock. +DI is placed above the -DI while ADX line is placed around 40 indicating momentum in the uptrend. Therefore, the analyst recommends buying Tata Elxsi at CMP and average at Rs 1,180 for the target of Rs 1,330, keeping a stop loss at Rs 1,150.

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