Stocks to buy: The Indian stock market benchmark, the Nifty 50, cracked almost 3 per cent in the morning session of trade on Monday, August 5, on an across-the-board selloff amid weak global cues. Investors appeared nervous amid growing concerns of a recession in the US and rising tensions in the Middle East.
The Nifty 50 opened at 24,302.85 against its previous close of 24,717.70 and dropped 3.2 per cent to the level of 23,921.65 during the session.
Experts remain optimistic about the Indian stock market for the medium to long term. However, they expect the market to remain volatile for the short term due to global news flows.
At this juncture, they recommend betting on quality stocks with strong fundamentals and favourable technical signals.
Shiju Koothupalakkal, a technical research analyst from Prabhudas Lilladher, recommends three stocks to buy for the next three to four weeks. Take a look:
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher Pvt Ltd
Ramkrishna Forgings | Previous close: ₹887.20 | Buying range : ₹875 – 900 | Target price: ₹1,020 | Stop loss: ₹830 | Upside potential: 15%
The stock has witnessed a gradual slide from ₹997 and has taken support near the 50EMA level at ₹840.
Currently, with a positive bullish candle formation on the daily chart with huge volume participation, it has improved the bias.
One can anticipate a further rise in the coming days. The RSI has cooled off significantly from the highly overbought zone and is currently well-placed, indicating a trend reversal to signal a buy.
West Coast Paper Mills | Previous close: ₹630.75 | Buying range: ₹624 – 640 | Target price: ₹720 | Stop loss: ₹590 | Upside potential: 14%
The stock has witnessed a decent correction from ₹754 and has taken support near ₹617. Consolidation is happening, and the stock is showing signs of a revival, with improvement in the bias and volume.
The RSI has corrected quite significantly from the highly overbought zone. It is well-positioned, indicating a trend reversal to signal a buy.
Harsha Engineers International | Previous close: ₹570.20 | Buying range: ₹560- 575 | Target: ₹630 | Stop loss: ₹525 | Upside potential: 11%
The stock has indicated a series of higher top and higher low formations on the daily chart and recently took support near the ₹495 level.
It has witnessed a decent pullback to move past the significant 50EMA level at ₹520 to improve the bias, and currently, with strength indicated, has the potential to carry on with the positive move further ahead.
The RSI is on the rise and well-placed, with much upside potential.
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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
