Top 7 Stocks to Watch: ITC, Britannia, and Coforge May Climb 5-14% in Coming Weeks, Say Analysts

The Indian stock market ended the week on a down note, marking the fourth consecutive weekly loss for the Nifty 50, which shed nearly 3% for the week ending October 25. Key factors contributing to this decline included significant foreign capital outflows, weaker-than-expected Q2 earnings, high valuations, and increasing uncertainty around the US elections. The index is now down 8% from its all-time high of 26,277.35, recorded on September 27.

Analysts point out that the market lacks fresh positive triggers, and there is a general expectation that weakness may continue until the US elections on November 5. While there may be some potential for a technical pullback, a sustained rally seems unlikely at this point.

Amol Athawale, a technical researcher at Kotak Securities, noted that the market consistently faces selling pressure at higher levels. Last week, for the first time in a while, it slipped below the 100-day SMA (simple moving average), which is generally considered a negative sign. Furthermore, the market formed a long bearish candle on the weekly charts, indicating that further weakness may lie ahead.

“We believe that the current market texture is weak but oversold, so there is a strong possibility of a pullback rally from current levels. For traders, 24,100 would act as a key support zone. Above this, we could expect a technical bounce back to around 24,500 and possibly the 100-day SMA level or 24,600,” said Athawale. He added, “A fresh selloff could happen if we breach the 24,100 level, which might lead the market to fall to 24,000-23,800.”

7 Stocks That Analysts Recommend for Potential 5-14% Gains Over the Next Few Weeks

Market experts advise caution when selecting stocks in the current environment. Based on the recommendations of several analysts, here are seven stocks that have the potential to deliver 5-14% returns in the next 3-4 weeks:

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers

1. Britannia Industries

• Previous Close: ₹5,669.40
• Buying Range: ₹5,650-5,700
• Target Price: ₹5,950
• Stop Loss: ₹5,535
• Upside Potential: 5%

Britannia’s stock has seen a sharp decline, dropping around 13.5% over the past month. However, it appears to have found strong support near the ₹5,600 level, which has previously acted as a demand zone where buying interest has emerged.

On the hourly chart, a bullish divergence is evident on the RSI hourly scale, suggesting a possible reversal as recent red candles have decreased in size, while green candles are becoming larger. This pattern indicates that selling momentum may be waning and buyers might be gradually stepping in.

“Given these technical signals, we recommend a long position in Britannia within the ₹5,650-5,700 range, with an upside target of ₹5,950. To manage downside risk, a stop loss is suggested at around ₹5,535, based on daily closing prices. This technical setup suggests a potential recovery if the demand zone holds firm,” said Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers.

Vishnu Kant Upadhyay, AVP, Research and Advisory at Master Capital Services

2. ITC

• Previous Close: ₹482.30
• Buying Range: ₹475-480
• Target Prices: ₹515, ₹523
• Stop Loss: ₹456
• Upside Potential: 8%

ITC’s stock currently finds support near the 200-day EMA (exponential moving average), with increasing trading activity at this level, indicating a fresh bullish rebound. This could potentially drive the price towards ₹515 and ₹523 in the near term.

The 14-day RSI also shows a bullish divergence, signaling an optimistic outlook ahead. “Investors may consider initiating long positions within the ₹475–480 range, with target levels set at ₹515 and ₹523. A stop loss at ₹456 is recommended to limit potential downside risk,” said Vishnu Kant Upadhyay, AVP, Research and Advisory at Master Capital Services.

3. Coforge

• Previous Close: ₹7,739.85
• Buying Price: ₹7,700
• Target Price: ₹8,400
• Stop Loss: ₹7,130
• Upside Potential: 9%

Coforge has shown a strong rebound from a key horizontal support zone of ₹6,700–6,800, rallying to a new all-time high. This upward movement is backed by significant increases in trading volumes on the weekly chart, which suggests continued bullish momentum in the upcoming sessions.

Recently, the stock’s 10-day and 21-day EMAs have crossed over, and positive signs in the MACD indicator further support the bullish outlook.

Mandar Bhojane, Equity Research Analyst, Choice Broking

4. Thermax

• Previous Close: ₹5,431.15
• Buying Price: ₹5,431.15
• Target Prices: ₹6,100, ₹6,200
• Stop Loss: ₹5,050
• Upside Potential: 14%

Thermax has recently broken out of a classic cup-and-handle pattern on the daily chart, supported by a significant increase in trading volume, indicating potential bullish momentum.

“If the price sustains above ₹5,440, it could reach targets of ₹6,100 and ₹6,200 in the short term. To manage risk, a stop loss at ₹5,050 can protect against sudden market reversals,” said Mandar Bhojane, Equity Research Analyst at Choice Broking.

5. Max Healthcare Institute

• Previous Close: ₹938
• Buying Price: ₹938
• Target Prices: ₹1,050, ₹1,060
• Stop Loss: ₹888
• Upside Potential: 13%

Max Healthcare has recently bounced back from a strong demand zone, finding support along a rising trend line on the daily chart. The increased trading volume further suggests potential bullish momentum.

“A closing price above ₹940 could lead to short-term targets of ₹1,050 and ₹1,060. A stop loss at ₹888 is advisable to protect against unexpected downturns,” said Bhojane.

Shiju Koothupalakkal, Technical Research Analyst, PL-CAPITAL – Prabhudas Lilladher

6. Indian Hotels Company

• Previous Close: ₹691.25
• Buying Range: ₹674 – 692
• Target Price: ₹750
• Stop Loss: ₹645
• Upside Potential: 8%

Indian Hotels has maintained its overall uptrend and recently took support near ₹645, forming a double-bottom pattern on the daily chart. It has also rebounded above its 50-day EMA level of ₹672, signaling improved buying interest and potential for further gains.

With the RSI showing a positive trend reversal and bullish signs, the stock appears to offer upside potential from the current levels.

7. CG Power and Industrial Solutions

• Previous Close: ₹743.50
• Buying Range: ₹738 – ₹752
• Target Price: ₹840
• Stop Loss: ₹707
• Upside Potential: 13%

CG Power has displayed a pattern of higher lows and higher highs on the daily chart, forming an ascending channel. It recently found support near the channel’s bottom at ₹710. A pullback with increased volume further signals a possible rally in the coming days. The RSI has corrected well and is positioned favorably, suggesting much upside potential.

Conclusion

While these seven stocks show potential for gains, experts advise caution and recommend using stop losses to manage risk. This approach is particularly important given the current market conditions and the potential for further volatility.