Stocks to buy: NTPC, Chemplast, ZF Commercial & Sundram Fasteners

Domestic brokerage firms including Ashika Stock Broking and IIFL Securities are positive on the select stocks, namely- NTPC, Sundram Fasteners, ZF Commercial Vehicle Control Systems India and Chemplast Sanmar. The brokerage firms believe that these stocks are headed for a strong upside in the near term on the basis of their sound technical setup. Here is what the brokerage firms have to say:

NTPC | Buy | Target Price: Rs 195 | Stop Loss: Rs 176

NTPC's stock has given an inverse head and shoulder pattern breakout and has sustained above the previous high, closing at new 52-week high levels. RSI is indicating further strength in the stock. We expect the stock to reach a target of Rs 195. Stop loss can be placed at the Rs 176 level.

Recommended by: IIFL Securities

Sundram Fasteners | Buy | Target Price: Rs 1,285 | Upside: 12%

Higher high formation in the Sundram Fasteners is perfectly in place irrespective of the market condition. It has been on a secular bull run since 2001 onward. Presently the stock has taken support from its upward-rising trendline adjoining the lows of April 2020 and July 2022. Volume concentration in recent periods denotes that mass participation has been driving the prices higher. On the oscillator front too, the stock is in a comfortable area; the 14-period RSI has taken support from the 60-level and is witnessing strength. Hence one can accumulate the stock at current levels with an upside target of Rs 1,285 in the near term.

Recommended by: Ashika Stock Broking

Chemplast Sanmar | Buy | Target Price: Rs 520 | Stop Loss: Rs 454

Chemplast Sanmar has given a consolidation breakout and is right at the neckline of a rounding bottom pattern. RSI has reversed from 50 levels and is above the recent highs while MACD has given a bullish crossover indicating an increase in bullish momentum in the short term. We expect the stock to reach a target of Rs 520 in the medium term. Stop loss can be placed at the Rs 454 level

Recommended by: IIFL Securities

ZF Commercial Vehicle Control Systems India | Buy | Target Price: Rs 12,500 | Upside: 11%

A secular bull run can be seen in ZF Commercial Vehicles from 2020 onward with higher high formation in weekly and monthly time frames. In recent periods the stock has given the necessary breakout from the upper panel of the rising channel indicating bullish fervour to remain. On the oscillator front, the stock is in the neutral price region further validating the bullish outlook. Hereon it can be expected that prices to scale further higher and breach past the psychological level of Rs 12,000 to reach the projected retracement level of Rs 12,500 in the next few weeks.

Recommended by: Ashika Stock Broking