STOCKS TO BUY: INFOSY, ADANI PORTS AMONG 10 STOCKS THAT MAY RISE 8-16% IN NEXT 3-4 WEEKS, SAY ANALYSTS; DO YOU OWN ANY?
Stocks to buy: After gaining about 2 per cent last week, the Indian stock market benchmark Nifty 50 started the new week on a positive note, hitting its fresh record high of 23,043.20 in intraday trade on Monday, May 27.
Sustained buying by domestic investors and positive global cues supported the market amid easing election-related jitters. Analysts expect the Nifty 50 to move between 22,500 and 23,500 this week.
"For the week, we expect Nifty to trade in the range of 23,500-22,500 with a positive bias," said analysts at Axis Securities.
They observed that the weekly RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines, indicating a positive bias.
"If Nifty crosses and sustains above the 23,200 level, it would witness buying, leading the index towards 23,400-23,500 levels. However, if the index breaks below the 22,800 level, it would witness selling, taking the index towards 22,600-22,500," said Axis Securities.
The Indian stock market may see some volatility in the near term as the election outcome day draws closer. Market experts suggest picking stocks with strong technical indicators. Based on the recommendations of several experts, here are 10 stocks that may rise 8-16 per cent in the next 3-4 weeks. Take a look:
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Infosys | Last traded price (LTP): ₹1,465.10 | Buying range: ₹1,445-1,470 | Target price: ₹1,575 | Stop loss: ₹1,399 | Upside potential: 8%
Over the past few months, Infosys stock has been consolidating within a narrow trading range, approximately between ₹1,400 and ₹1,450.
This period of consolidation indicates that the stock was moving sideways without any significant upward or downward momentum.
However, the stock price recently broke out of this range, moving above the ₹1,450 level and maintaining its position above this previous resistance level.
This breakout suggests a potential shift in market sentiment from neutral to positive.
From a technical analysis perspective, the daily stochastic indicator, which measures the stock's momentum, has reversed direction from the 60 level and is now approaching the overbought zone.
This shift in the stochastic indicator implies increased buying, which is a bullish signal and suggests that the stock may continue to rise.
"Based on these observations, we recommend that investors and traders consider taking a long position in Infosys within the price range of ₹1,445 to ₹1,470. The target for this trade is an upside of ₹1,575. To manage risk, a stop loss should be placed near ₹1,399 on a daily closing basis," said Patel.
Sumitomo Chemical India | LTP: ₹440.30 | Buying range: ₹ ₹430-440 | Target price: ₹495 | Stop loss: ₹405 | Upside potential: 12%
The stock recently faced a significant decline. It is currently trading close to its 200-day exponential moving average (DEMA).
This proximity to the DEMA suggests that the stock might find support at this level, as the 200-day DEMA is commonly regarded as a crucial indicator of long-term trends and support.
Additionally, technical analysis reveals that the daily Moving Average Convergence Divergence (MACD) indicator has formed a bullish crossover.
This occurs when the MACD line crosses above the signal line, indicating a potential shift from a downward trend to an upward trend. Moreover, a bullish bat pattern appeared on the weekly chart.
This harmonic pattern typically signifies a reversal in the market, suggesting that the recent downtrend may be nearing its end and an upward movement might be forthcoming.
These combined indicators— the support level near the 200-day DEMA, the bullish MACD crossover, and the bullish Bat pattern— suggest a potentially favourable buying opportunity for investors.
"Based on these positive technical signals, we recommend that traders and investors consider entering long positions in Sumitomo Chemical India within the price range of ₹430- ₹440. Our target for this trade is ₹495, representing a substantial potential gain from the current levels. To manage risks effectively, we advise setting a stop loss at ₹405 on a daily closing basis," said Patel.
MTAR Technologies | LTP: ₹2,148.45 | Buying range: ₹2,100-2,150 | Target price: ₹2,450 | Stop loss: ₹1,962 | Upside potential: 14%
After peaking around the ₹2,923 level, MTAR Technologies experienced a significant downturn, losing approximately 1,260 points, or a 43 per cent decline in its overall value.
This sharp decrease indicated a strong bearish phase in the stock's performance.
However, over the past week, the stock price has found stability within the ₹1,800-1,900 range, forming a solid support base.
This stabilisation suggests that the selling pressure has subsided, and the stock may be preparing for a potential rebound.
During this period of consolidation, a bullish divergence has emerged on the daily MACD (Moving Average Convergence Divergence) scale.
A bullish divergence occurs when the stock price makes new lows while the MACD indicator makes higher lows, suggesting that the downward momentum is weakening and a reversal might be on the horizon.
This positive shift in market sentiment, indicated by the MACD, is a bullish signal that the stock could soon experience an upward movement.
"Given these technical developments and observed chart patterns, it may be prudent for investors to consider buying the stock of MTAR Technologies within the ₹2,100-2,150 price range. The target for this trade is an upside of ₹2,450, which reflects a significant potential gain from the current levels. To manage risk effectively, it is advisable to set a stop loss order at ₹1,962 on a daily closing basis. This stop-loss level is intended to protect against further declines, ensuring that potential losses are minimised if the stock fails to follow through on the anticipated upward movement," said Patel.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher
Shriram Finance | LTP: ₹2,397.50 | Target price: ₹2,670 | Stop loss: ₹2,290 | Upside potential: 11%
The stock has taken support near the long-term trendline zone at ₹2,280 levels and, after a short period of consolidation, has indicated bullish candle formation in the last two sessions on the daily chart to improve the bias and signal a further rise.
"The RSI, which is gradually rising, has indicated a trend reversal with much upside potential. With the chart looking good, we suggest buying the stock for an upside target of ₹2,670, keeping the stop loss of ₹2,290," Koothupalakkal said.
Fertilizers and Chemicals Travancore (FACT) | LTP: ₹717.05 | Target price: ₹830 | Stop loss: ₹684 | Upside potential: 16%
The stock has indicated a gradual rising trend and is currently taking support near ₹690. It has indicated a bullish candle formation with huge volume participation on the daily chart to strengthen the bias.
The RSI is currently well-placed and is gradually rising, showing strength and indicating a trend reversal with much upside potential.
"With the chart looking good, we suggest buying the stock for an upside target of ₹830, keeping the stop loss near the ₹684 level," Koothupalakkal said.
Chennai Petroleum Corporation | LTP: ₹974.20 | Target price: ₹1,075 | Stop loss: ₹927 | upside potential: 10%
The stock has indicated a higher bottom formation on the daily chart, taking support near the ₹830 level, and has witnessed a decent pullback to improve the bias, anticipating a further rise.
The RSI is currently well-placed and has indicated a trend reversal, signalling a buy with much upside potential to continue the positive move.
"With the chart looking attractive and volume participation visibly on the rise, we suggest buying the stock for an upside target of ₹1,075, keeping the stop loss of ₹927 level," said Koothupalakkal.
Also Read: Jim Rogers: I’ll invest in India again if the stock market goes down a lot
Axis Securities
Adani Ports and Special Economic Zone | LTP: ₹1,416.10 | Buying range: ₹1,400-1,372 | Target price: ₹1,542-1,585 | Stop loss: ₹1,308 | Upside potential: 12%
Adani Ports has demonstrated a breakout above the consolidation zone of ₹1,224-1,400 on the weekly chart, with a strong bullish candle indicating the continuation of the uptrend.
During the pattern formation, volume activity tends to decline, while at the breakout, there is an increase in activity, indicating heightened market participation.
The stock has established a support base at ₹1,188, holding above the 38 per cent Fibonacci retracement level of the rally from ₹395-1425, indicating potential medium-term support.
The weekly RSI has given a crossover above its reference line, generating a buy signal.
Samvardhana Motherson International | LTP: ₹140.15 | Buying range: ₹138-134 | Target price: ₹148-155 | Stop loss: ₹130 | Upside potential: 11%
On the daily chart, Samvardhana Motherson has broken out above a two-year rounded bottom formation at ₹134, indicating a positive bias.
The stock has broken above the weekly upper Bollinger Band, generating a buy signal.
The stock is holding above key moving averages of 20, 50, 100, and 200 days, indicating an uptrend in both the short and medium term.
The weekly RSI is holding above its reference line, indicating positive bias.
Emami | LTP: ₹544.80 | Buying range: ₹540-530 | Target price: ₹587-615 | Stop loss: ₹509 | Upside potential: 13%
Emami has confirmed a breakout above the bullish flag pattern at ₹524 on the daily chart, indicating the continuation of its uptrend.
On the daily chart, it displays a bullish trend, characterised by higher highs and lower lows. This trend is further supported by an upward-sloping channel, suggesting a prevailing upward bias.
The stock has established a support base at ₹511, holding above the 23 per cent Fibonacci retracement level of the rally from ₹417-538, indicating potential short-term support.
The daily strength indicator RSI has given a crossover above its reference line, generating a buy signal.
Metropolis Healthcare | LTP: ₹1,970.75 | Buying range: ₹1,945-1,907 | Target price: ₹2,210-2,285 | Stop loss: ₹1,785 | Upside potential: 16%
Metropolis Healthcare has confirmed a breakout above the multiple resistance zone near ₹1,900 on the weekly chart, indicating a potential continuation of its uptrend.
It displays a bullish trend on the weekly chart, characterised by higher highs and lower lows. This trend is further supported by an upward-sloping channel, suggesting a prevailing upward bias.
The weekly RSI has given a crossover above its reference line, generating a buy signal.
The weekly RSI breaking above horizontal resistance further confirms the breakout in prices.
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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.
2024-05-27T06:56:39Z dg43tfdfdgfd