Top Stock Picks: Bajaj Auto, Hero MotoCorp, NBCC Expected to Deliver 10% or More Short-Term Returns

In the world of stocks, the Nifty50 has shown a strong signal with a hammer candlestick pattern on the weekly timeframe. Despite a week of volatility, the market managed to stay above the previous week’s low, indicating a positive momentum.

When we focus on the daily timeframe, we notice that the index has been consistently trading close to its 20-day simple moving average (SMA), suggesting a short-term range-bound movement.

Key support levels for the Nifty are situated at 19,480, marked by multiple touch points, with additional support zones at 19,200 and 19,000. On the other hand, potential resistance levels are likely at 19,850, followed by the 20,000 mark, with significant resistance seen at the all-time high of 20,222.

The relative strength index (RSI), a momentum indicator, has consistently remained below the 50 level on the daily charts, indicating a lack of short-term momentum.

Considering these factors, the outlook suggests a bias towards a range-bound scenario for the Nifty. Strong support is anticipated at 19,480 and 19,200, while the upper range may be limited around 19,850 and 20,000.

Here are three stock recommendations for the next 2-3 weeks:

NBCC (India): Buy | LTP: Rs 70.75 | Stop-Loss: Rs 65.4 | Target: Rs 79 | Return: 12 percent

Currently, NBCC’s stock is trading at its highest level since September 2018, signaling a clear bullish sentiment in its pricing.

A look at the weekly charts reveals a breakout from a rounding pattern, indicating a sustained upward trend. This bullish breakout is supported by a significant increase in trading volumes.

Moreover, the RSI, on both daily and weekly timeframes, remains well above the 60 threshold, emphasizing the growing momentum in the stock’s price dynamics.

Looking ahead, we expect prices to rise to Rs 79, with a strict stop-loss at Rs 65.40 on a closing basis.

Bajaj Auto: Buy | LTP: Rs 5,482.60 | Stop-Loss: Rs 5,100 | Target: Rs 6,050 | Return: 10 percent

Bajaj Auto is currently at record highs, signifying strong market momentum. In a ratio chart comparison with the Nifty Auto index, there’s a clear breakout from the descending trendline that held since June 2020, highlighting its superior performance.

Additionally, the stock has consistently traded above the 12-day exponential moving average (EMA), reinforcing the bullish trend.

The daily relative strength index (RSI) remaining comfortably above the 50 threshold underscores the stock’s sustained positive momentum.

Looking forward, we anticipate prices to move higher to the Rs 6,050 mark, with a strict stop-loss at Rs 5,100 on a closing basis.

Hero MotoCorp: Buy | LTP: Rs 3,265.85 | Stop-Loss: Rs 3,050 | Target: Rs 3,625 | Return: 11 percent

Hero MotoCorp has displayed impressive resilience by maintaining a multi-year high level following a breakout from a Double Bottom price pattern in the range of Rs 2,350 to Rs 2,300 on the monthly charts. This pattern indicates a strong and enduring positive sentiment surrounding the stock for the medium to long term.

In-depth analysis of the daily charts shows that Hero has consistently stayed above critical moving averages, including the 50, 100, and 200-day simple moving averages (SMA). The stock has also broken out from the Saucer pattern and has seen increased trading volumes during each upswing.

Furthermore, the RSI, a crucial momentum indicator, has consistently stayed above 55 across all time frames, confirming a resilient and sustained positive momentum.

Looking ahead, we expect the stock’s price to continue its upward trajectory, with a potential target of Rs 3,625. It’s important to stress the need for prudent risk management, and we recommend setting a stop-loss at Rs 3,050 on a closing basis.