Technical chartbusters: 5 stocks that look strong on technical parameters; Nirmal Bang says buy them

The year 2022 ended with nominal gains for the Indian market. Nevertheless, it outperformed many of its global peers. As media reports suggested, the US markets posted their worst yearly performance since 2008. The S&P 500 fell nearly 20 percent while NASDAQ crashed 33 percent in 2022. European indices ended between 9.5-11.9 percent lower and most Asian indices also fell anywhere from 5 percent to 25 percent in 2022. At present, the valuation of Indian markets is above average so there are low chances of a broad-based rally unless there is a significant earnings upgrade. However, there are opportunities that retail investors should focus on. The brokerage firm identifies five stocks that look strong on technical charts. They say investors can bet on these technical chartbuster stocks in 2023. 

PNB Housing Finance | Target price: ₹630-770 | Stop loss: ₹410 The brokerage firm highlighted that the stock has witnessed a falling trend line breakout at approximately ₹440 level on the monthly chart. An interesting fact is that the stock is trading in an upward raising channel in the weekly chart. The volumes in the last quarter are much higher than the previous quarters which confirms the breakout.

HDFC | Target price: ₹3,000-3,150 | Stop loss: ₹2,470 The stock has witnessed a breakout of a symmetrical triangle on its weekly chart. It has currently formed a flag pattern on its weekly charts and the breakout of the same will be seen in the coming sessions. The stock has shown a positive RSI crossover.

REC | Target price: ₹145 | Stop loss: ₹103The monthly chart of the stock indicates that it is trading in an upward-rising channel, suggesting a potential up-move in the near term. The chart suggests that the stock has taken the support of the channel trendline and witnessed a positive move in an upwards direction. Momentum indicators, such as RSI, are showing strength.

ICICI Lombard General Insurance Company | Target price: ₹1,420 | Stop loss: ₹1,100 The stock has been in a consolidation phase for the last six months, forming a strong setup with good buying accumulation. The same has been witnessed in the previous six-eight weeks. The stock has seen a breakout at ₹1,265 and any stability or closes above those levels will give a strong upside momentum for the stock to move towards ₹1,360-1,420. The stock is witnessing good formation in all time frames which gives confirmation for a strong set of buying to get visible in the near term.

Bajaj Electricals | Target price: ₹1,600 | Stop loss: ₹970 The stock has given a downward falling trend line breakout at ₹1,220 on the monthly chart. The chart suggests that the stock has created a base at ₹1,100– ₹970 zone. It has given a consolidation breakout on the weekly chart too which gives more conviction for the stock to move upward.