Stocks to buy: The Indian equity market’s benchmark index, Nifty 50, rose over 3% last week on rising hopes of political stability and policy continuity following the Indian Lok Sabha elections.Furthermore, the Reserve Bank of India’s (RBI) upward revision of its growth forecast for FY25 and subtle signals that the central bank may consider a change in policy stance at its next policy meeting in August also boosted market sentiment.
Related article: RBI Monetary Policy: Possible change in policy in August? RBI to cut interest rates ahead of US Fed?
Experts observed that Nifty 50 has formed a small bearish candlestick with a lower wick on the weekly chart, indicating support at lower levels.
According to Axis Securities, chart patterns suggest that if the Nifty 50 sustains above the 23,400 level, buying will be seen and the index may rise to 23,500-23,800 levels. However, if the index sinks below the 23,000 level, selling will be seen and the index will fall to 22,800-22,600 levels.
“We expect Nifty to trade positively in the range of 23,700-22,600 this week. The daily and weekly strength indicator RSI (relative strength index) is trending up and is above its baseline, indicating a positive trend,” Axis Securities said.
All eyes are on the outcome of the Federal Reserve’s meeting this Wednesday. While the medium to long-term outlook for the market remains attractive, macroeconomic data, global developments and possible government policy announcements will likely influence the market in the near term.
Considering the current market structure, experts recommend betting on stocks that are fundamentally and technically sound.
Also read: Value vs Growth Stocks: Which should investors choose amid optimism in Indian stock market? Here’s what experts say
Based on the recommendations of multiple experts, here are 9 stocks that have the potential to rise 6-15 percent over the next 3-4 weeks.
Axis Securities
Tech Mahindra | Previous day’s closing price: ₹1,377.60 | Purchase range: ₹1,350-1,324 | Target Price: ₹1,505-1,550 | Stop Loss: ₹1,253 | Upside potential: 13%
On the weekly chart, Tech Mahindra broke out above the medium term descending trend line. ₹A strong bullish candle at 1,350 indicates the start of an uptrend.
The daily chart shows a bullish trend with higher highs and higher lows supported by an ascending channel.
It has recently found support at the lower band and is now heading towards the upper band.
The weekly RSI crossed over above the reference line and broke the downward sloping trend line, generating a buy signal.
Related article: From monsoon to rate cut: 5 key catalysts for Indian stock market post 2024 Lok Sabha elections
Raymond | Previous day’s closing price: ₹2,471.65 | Purchase range: ₹2,385-2,337 | Target Price: ₹2,713-2,830 | Stop Loss: ₹2,185 | Upside potential: 15%
Raymond confirmed that a round bottom pattern had been broken out. ₹The weekly chart is showing a strong bullish candle at 2,300, indicating a positive outlook.
Volume activity tends to decrease while the pattern is forming, while activity increases upon breakout, indicating increased market participation.
The stock is above the major moving averages of the 20-day, 50-day, 100-day and 200-day periods, indicating an uptrend in both the short and medium term.
The weekly strength indicator RSI is above its baseline, indicating a positive trend.
Related Article: Nifty 50 continues to fluctuate wildly, but how should investors handle this volatility?
Eris Life Sciences | Previous day’s closing price: ₹994.45 | Purchase range: ₹980-962 | Target Price: ₹1,065-1,113 | Stop Loss: ₹925 | Upside potential: 12%
On the weekly chart, Ellis ₹A strong bullish candle at the 965-800 consolidation zone indicates a continuation of the uptrend.
Trading volume increased during the breakout, indicating an influx of market participants at the breakout level.
The stock price rose to the 38% Fib retracement level. ₹From 551 ₹972, Location ₹814, confirming medium-term support base.
The weekly strength indicator RSI crossed over above the Kijun line, generating a buy signal.
Jigar S. Patel, Senior Manager, Equity Research, Anand Rathi Stockbrokers
Kotak Mahindra Bank | Previous day’s closing price: ₹1,753.70 | Purchase range: ₹1,730-1,760 | Target Price: ₹1,850 | Stop Loss: ₹1,690 | Upside potential: 6%
After approaching the peak ₹Since hitting 1,926 points on December 18, 2023, Kotak Mahindra Bank’s share price has fallen substantially, dropping by around 380 points or around 20%.
However, Kotak Mahindra Bank showed resilience last week by avoiding further declines and reversing near the lower Bollinger band.
The last trading session saw notable buying activity at the lower price levels, suggesting investors are interested in purchasing the stock at these levels.
From a technical perspective, the monthly Stochastic indicator is indicating a bullish cross, signaling a potential change in momentum and presenting an attractive buying opportunity.
“Traders are advised to consider buying shares within the following ranges: ₹1,730-1,760, expected upside target ₹1,850, stop loss is ₹“Based on the closing price, that would be $1,690,” Patel said.
UPL | Previous day’s closing price: ₹539.75 | Purchase range: ₹525-545 | Target Price: ₹590 | Stop Loss: ₹499 | Upside potential: 9%
After a period of integration, ₹505-530, UPL has successfully broken out of the bearish trend line that has been in place for almost 5 months.
The stock is stabilizing above this trendline and exhibiting a strong uptrend. From an indicators perspective, the weekly stochastics is exhibiting a bullish cross near the 60 level, indicating a positive sign of potential profits.
“Traders and investors ₹525-545. The goal of this rise is ₹590, stop loss is ₹“Based on the closing price, that would be $499,” Patel said.
Divi’s Laboratories | Previous day’s closing price: ₹4,524.05 | Purchase range: ₹4,480-4,530 | Target Price: ₹5,000 | Stop Loss: ₹4,260 | Upside potential: 11%
This month, Divi’s Labs surpassed its previous peak. ₹4,468.
This breakout is significant because it indicates that the stock has overcome a previous resistance level and is now in a position to capture potential profits.
Divi’s Labs’ ability to sustain price above this range increases the likelihood of continued upward momentum.
From a technical analysis perspective, the weekly Stochastic Oscillator, which helps identify overbought and oversold conditions, reversed direction at the 55 level, indicating a bullish crossover.
This crossover occurs when the short-term stochastic line rises above the longer-term stochastic line, suggesting increasing buying pressure and supporting a bullish outlook.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher
Tata Motors | Previous day’s closing price: ₹970.50 | Target Price: ₹1,110 | Stop Loss: ₹917 | Upside potential: 14%
The stock is showing a breakout of the descending channel. ₹Level 947.
It has crossed the important 50 EMA (Exponential Moving Average) level. ₹960 to improve bias.
The RSI is hovering close to the oversold zone and there is a lot of upside potential from current levels, indicating a trend reversal which could signal buying.
“The stock has been underperforming for a long time, but currently the chart looks attractive and the risk/reward balance is good, so I would recommend buying this stock as an upside target. ₹1,110, hold stop loss ₹917,” Koothupalakkar said.
Bharat Electronics (BEL) | Previous day’s closing price: ₹283.20 | Target Price: ₹320 | Stop Loss: ₹252 | Upside potential: 13%
The stock has maintained a strong overall uptrend on the daily chart.
recently, ₹323 has support nearby ₹It reached the 230 level and showed a proper pullback to break out of the crucial 50 EMA level. ₹248 Improve bias.
The RSI has also settled down from the overbought zone.
It has been gradually declining and is well positioned with significant upside potential if the positive movement continues given current rates.
Larsen & Toubro (L&T) Previous day’s closing price: ₹3,532.50 | Target Price: ₹3,920 | Stop Loss: ₹3,300 | Upside potential: 11%
The stock has recently fallen sharply from its peak. ₹3,919 people are supporting ₹3,175.
It broke out above the crucial 200-period MA and rebounded strongly. ₹At the 3305 level, a further pullback is seen, improving the bias and suggesting an upside move in the coming days.
The RSI has cooled significantly from the overbought zone and is technically well positioned at current levels, making the chart look attractive again.
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Disclaimer: The views and recommendations expressed are those of the individual analysts, experts and brokerage firms and not of Mint. You are advised to consult a qualified professional before making any investment decisions.
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