Financial analysts caution against excessive bullishness in the current market, pointing to rich valuations that may lead to a consolidation phase. SEBI’s advisory on mid and small-cap schemes’ high valuations is expected to curb broader market performance. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasizes the need for caution, stating that irrational exuberance lacks fundamental justification.
Axis Securities predicts Nifty to trade between 22,800-22,000 with a positive bias for the week. Crossing the 22,500 level may trigger buying, pushing the index towards 22,600-22,800, while a break below 22,300 could lead to selling, bringing it to 22,150-22,000 levels.
Amidst near-term volatility, experts recommend investing in technically and fundamentally sound stocks. Here are 10 stocks suggested by various experts for consideration in the next three to four weeks.
Axis Securities
Tata Steel | LTP: ₹155.25 | Buying range: ₹153-149 | Target price: ₹167-177 | Stop loss: ₹143 | Upside potential: 14%
Tata Steel has broken a significant resistance at ₹150 on the weekly chart, suggesting that its medium-term upward trend is likely to continue. The old ₹150 resistance is expected to act as a support now, creating a strong zone to support the stock’s price movement, following the principle of polarity.
The stock is following an upward-sloping channel, recently finding support at the lower band and now moving towards the upper band.
Looking at the weekly Relative Strength Index (RSI), it’s in a bullish mode, staying above an upward-sloping trendline, which supports the ongoing upward movement in the stock’s price.
Jamna Auto Industries | LTP: ₹135.70 | Buying range: ₹133-129 | Target price: ₹151-163 | Stop loss: ₹122 | Upside potential: 20%
Jamna Auto is showing a positive breakout above the symmetrical triangular pattern at ₹125 on the weekly chart. This signals a potential continuation of a medium-term upward trend after two years of consolidation.
The increased volume during the breakout indicates a higher level of market participation, suggesting growing interest in the stock.
Another positive sign is the stock’s closing above the upper Bollinger Band on the weekly chart, which is seen as a buy signal.
Looking at the weekly strength indicator RSI, it is in a bullish mode and staying above its reference line, showing a positive bias in the stock’s movement.
Triveni Turbine | LTP: ₹514.15 | Buying range: ₹510-500 | Target price: ₹605-630 | Stop loss: ₹455 | Upside potential: 23%
Triveni Turbine is making a bullish move, breaking above the pennant pattern at ₹474 on the weekly chart, hinting at a possible continuation of a post-consolidation rally.
The stock recently broke out of a medium-term consolidation phase, ranging between ₹440-340, suggesting the start of an upward trend after the breakout.
Notably, Triveni Turbine is holding above key averages like the 20, 50, 100, and 200 days simple moving average (SMA), indicating a robust uptrend.
Additionally, the weekly strength indicator RSI is in a bullish mode, staying above its reference line, signaling a positive outlook for the stock. Investors might want to keep an eye on this potentially lucrative opportunity.
Havells India | LTP: ₹1,576.45 | Buying range: ₹1,555-1,525 | Target price: ₹1,685-1,765 | Stop loss: ₹1,470 | Upside potential: 12%
Havells India is making some exciting moves as it breaks out of a consolidation phase that lasted for two and a half years, ranging between ₹1,500-1,050. This breakout is signaled by a strong bullish candle on the weekly chart, suggesting the start of an upward trend.
During the consolidation, volume activity decreased, but there was a notable increase in volume at the breakout, indicating a surge in market participation.
Looking at the weekly chart, Havells India is showing a pattern of higher high-low formations and is staying above the upward-sloping trendline, indicating a positive trend.
Adding to the positive signs, the weekly strength indicator RSI has crossed above its reference line, giving a buy signal. These indicators suggest an interesting opportunity for investors to consider.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher
Hindustan Unilever (HUL) | LTP: ₹2,416.20 | Target price: ₹2,670 | Stop loss: ₹2,300 | Upside potential: 11%
The stock recently experienced a notable decline but found support around the long-term trendline at ₹2,350. This support has prompted a pullback, improving the overall outlook.
The RSI (Relative Strength Index) is also showing positive signs, suggesting a potential reversal in the trend and the possibility of further positive movements in the future. Investors might find this situation promising for the stock.
NMDC | LTP: ₹234.70 | Target price: ₹265 | Stop loss: ₹220 | Upside potential: 13%
After a recent decline, the stock seems to have hit a low point near the 50EMA (exponential moving average) level of ₹220. Now, there’s an indication of a pullback to enhance the overall outlook.
The stock has been following a robust upward trend, taking short breaks for corrections at times but consistently gaining strength to resume the upward movement.
The RSI (Relative Strength Index) is also showing improvement, trending upward and suggesting a potential reversal in the overall trend. This could be a positive signal for investors tracking the stock.
REC | LTP: ₹462.25 | Target price: ₹515 | Stop loss: ₹422 | Upside potential: 11%
After a recent drop, the stock seems to have hit a low point around ₹424. There are signs of a rebound, as seen in a positive candle formation on the daily chart. It has almost surpassed the 50EMA level of ₹444, indicating an improvement in the overall situation.
The chart appears favorable, and with the RSI (Relative Strength Index) in a good position, there are indications of a trend reversal. This suggests a buying opportunity, with expectations of further upward movement in the coming days. Investors might find this situation promising.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Kotak Mahindra Bank | LTP: 1,723.70 | Target price: ₹1,820 | Stop loss: ₹1,665 | Upside potential: 6%
After reaching a high point near 1850, Kotak Mahindra Bank experienced a significant drop of around 187 points, marking a notable decrease of about 10% in its value.
In the last month, the stock found a stable bottom around the 1.13 harmonic ratio. Interestingly, there’s a bullish AB=CD pattern near this ratio, providing further confirmation of a positive trend.
Adding to the positive signs, there’s a bullish divergence on the daily stochastic indicator (please check the chart), indicating a favorable outlook for the stock.
According to Patel, it might be a good idea to consider buying the stock in the range of ₹1,705-1,730 with a target of ₹1,820 and a stop loss set at ₹1,665. Investors may find this strategy worth considering.
IndusInd Bank | LTP: ₹1,526 | Target price: ₹1,600 | Stop loss: ₹1,475 | Upside potential: 5%
After reaching a high around ₹1,695, IndusInd Bank faced a significant decline of almost 267 points, marking a substantial drop of approximately 15.75% in its price.
However, in the last two months, the stock formed a triple bottom structure between the 100 and 200-day exponential moving averages (DEMA), creating an attractive opportunity at its current position.
Recent trading activity witnessed IndusInd Bank breaking through the bear trendline while also showing bullish divergence on the daily stochastics, suggesting a positive outlook for the stock.
According to Patel, investors might want to think about starting new long positions within the range of ₹1,505-1,530, with a target of ₹1,600. To manage risk, he suggests placing a stop-loss order near ₹1,475 on a daily closing basis. This strategy could be worth considering for investors.
Piramal Enterprises (PEL) | LTP: ₹934.85 | Target price: ₹1,055 | Stop loss: ₹865 | Upside potential: 13%
In September 2023, PEL reached its highest point, hitting nearly ₹1,140. However, it went through a significant decline afterward, dropping by almost 300 points, marking a notable 26% decrease.
Currently, the stock appears to have found support in the range of ₹840-900, suggesting a potential stabilization in its price movement. Recent market observations reveal the formation of a double bottom pattern on the daily chart, accompanied by bullish divergence – a positive sign for traders.
This combination of technical signals offers an attractive opportunity for market participants.
“In view of these developments, traders are advised to consider starting long positions within the range of ₹920-940. The target for this optimistic trade is set at ₹1,055. To effectively manage risks, it is recommended to set a stop-loss level at ₹865 on a daily closing basis,” advised Patel.
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