Market benchmark Nifty 50 has been trading rangebound for the last few days due to a lack of triggers. Investors appear to be cautious ahead of state election outcomes and India’s Q2 GDP numbers.
In morning trade on Tuesday, Nifty 50 rose about 0.3 per cent but soon pared most gains and traded 0.14 per cent up at 19,823 around 10:35 am.
Last week, Nifty formed a ‘Doji’ candlestick pattern on the weekly chart indicating indecisiveness among market participants.
According to Axis Securities, the chart pattern suggests that if the Nifty crosses and sustains above 19,900, it would witness buying which would lead the index towards 20,000-20,200 levels.
However, if the index breaks below the 19,650 level, it would witness selling, which would take the index towards 19,500-19,400, Axis Securities said.
The brokerage firm pointed out that the weekly strength indicator RSI continues to remain flat, indicating the absence of strength. However, the momentum oscillator Stochastic has turned positive from the oversold zone, indicating a possible up move in the near term.
For the week, Axis Securities expects Nifty to trade in the range of 20,200-19,400 with a mixed bias.
The market is expected to remain volatile in the short term due to prevailing uncertainty. Experts recommend buying technically and fundamentally sound stocks at the current juncture. Based on the recommendations of several experts, below are 12 stocks that one can consider buying for the next three to four weeks. Take a look:
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Axis Securities
Bharti Airtel | Buying range: ₹963-943 | Target price: ₹1,040-1,070 | Stop loss: ₹910
On the weekly chart, Bharti Airtel has convincingly broken through the consolidation zone ranging from ₹960 to ₹902, propelled by a robust bullish candlestick pattern, affirming the continuation of the medium-term uptrend.
The stock is currently following a rising channel formation in the medium term finding support at the lower band of the channel recently and rebounding, indicating a potential move towards the upper band.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
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Bharat Forge | Buying range: ₹1,095-1,073 | Target price: ₹1,172-1,200 | Stop loss: ₹1,040
Bharat Forge has exhibited a robust breakout above ₹1,100 from a falling channel pattern on the weekly chart, supported by a strong bullish candle, signalling a positive bias.
The stock holding above the 38 per cent Fibonacci retracement level of the rally from ₹743-1,148, placed at ₹994, indicates the formation of a medium-term support base.
The stock is exhibiting a pattern of higher highs and lows on the medium chart, indicating a strong uptrend.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
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SJVN | Buying range: ₹79-77 | Target price: ₹87-91 | Stop loss: ₹74
On the weekly chart, SJVN surged above the symmetrical triangular pattern at ₹78 with a robust bullish candle, indicating the continuation of an uptrend following a short-term consolidation breakout.
Volume activity during the pattern formation period declined, but it surged at the breakout, reaffirming the positive bias in the stock trend.
The stock is holding above key averages of 20, 50, 100, and 200 days simple moving average (SMA), signalling a strong uptrend in the stock.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
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Gaurav Bissa, VP, InCred Equities
Many of the pharma names have done quite well lately with strong upsides seen in largecap and midcap stocks. SPARC witnessed a good upside which was followed by a consolidation on the weekly charts.
The stock has confirmed a weekly breakout with incremental volumes which can propel the stock towards ₹300. The stock has triggered a buy signal in the Ichimoku system which can result in the start of a fresh uptrend.
DCX Systems | Target price: ₹405 | Stop loss: ₹350
DCX Systems has a small price history but it has been forming higher highs and higher lows on daily charts which shows an uptrend.
The stock has closed above its listing high price and witnessed a breakout on the weekly charts. It has witnessed one of the highest volumes implying the stock is all set to witness a robust upside.
The stock has witnessed a bullish MACD crossover on weekly charts which is likely to keep the trend strong in the immediate term.
DCM Shriram Industries witnessed a strong upside which was followed by a consolidation. The stock has confirmed a weekly breakout from a bullish flag pattern which is a continuation pattern in nature and is expected to witness a move towards ₹200 level.
The stock has witnessed strong volumes along with a bullish MACD crossover which can keep the momentum strong and downside restricted in the short term.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher
The stock bottomed out near the ₹600 level and picked up well recently to move past the 200-period MA (moving average) at ₹616, and thereafter the 50EMA (exponential moving average) and 100-period MA at ₹640, improving the bias.
With the indication of a decisive breach above the triangular pattern above ₹640, it has strengthened the trend, hinting at a further rise to the 730-740 zone.
The RSI, which is on the rise, is well-placed indicating strength.
“With the chart looking attractive, we suggest buying and accumulating the stock for an upside target of ₹750, keeping the stop loss of ₹630,” said Koothupalakkal.
The stock has witnessed a decent consolidation phase near the important 50EMA level of the 765-770 zone. With a positive candle formation, it has come out of the rectangular box to improve the bias and to hit a further rise in the coming days.
The RSI has indicated a trend reversal from the oversold zone and currently is well-placed indicating strength.
GHCL | Target price: ₹640 | Stop loss: ₹515
The stock after the decent erosion has bottomed out and taken support near ₹520, indicating a decent pullback with a positive bullish candle pattern on the daily chart.
It has moved past the significant 200 period MA of ₹534, improving the bias. The RSI also has indicated a trend reversal from the highly oversold zone and has signalled a buy with much immense upside potential visible from the current levels.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
DMart | Buying range: ₹3,800-3,850 | Target price: ₹4,200 | Stop loss: ₹3,650
On a weekly scale, DMart has formed a solid base near ₹3,600, exactly near its historical support of ₹3,500. Moreover, the recent up-move is supported by decent volume which is looking lucrative.
On the indicator front, RSI Weekly has taken support on 50 levels and reversed from there, thus hinting towards a bullish bias in the counter.
Tata Teleservices Maharashtra (TTML) | Buying range: ₹86-90 | Target price: ₹105 | Stop loss: ₹78
The stock has corrected approximately 25 per cent since reaching a high near ₹110 on September 15, 2023. At the current juncture, it has taken support near the 200 daily exponential average, i.e., the ₹85 level, which is also the previous swing high.
On the indicator, the daily RSI has made an impulsive structure near the oversold zone of 30, which is looking lucrative.
Chambal Fertilisers and Chemicals | Buying range: ₹305-310 | Target price: ₹365 | Stop loss: ₹275
Chambal Fertilisers has been consolidating for some time on the weekly chart. Recently, it had a breakout with a huge volume.On the indicator front, weekly RSI is about to enter the 70 zone, along with weekly DMI, which has turned positive, thus looking lucrative.
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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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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.
