After the return of the BJP-led NDA government, the focus is now on policy announcements and the upcoming Budget in July.
Technical analysts see some indication of indecisiveness in the market.
Brokerage firm Axis Securities pointed out that the Nifty 50 formed a ‘Doji’ candlestick formation on the weekly chart. A Doji candle indicates indecisiveness between buyers and sellers.
“The chart pattern suggests that if the Nifty 50 crosses and sustains above the 23,600 level, it would witness buying, leading the index towards the 23,800-23,900 levels. However, if the index breaks below the 23,300 level, it will witness selling pressure, taking it towards 23,200-23,000,” said Axis Securities.
For the week, Axis expects Nifty 50 to trade in the range of 23,900-23,000 with a mixed bias.
“The daily and weekly strength indicator Relative Strength Index (RSI) is moving upwards and quoting above its reference line, indicating a positive bias,” said Axis.
Even though the market outlook is positive for the medium to long term, analysts expect some volatility in the near term. At the current juncture, they suggest betting on fundamentally and technically sound stocks.
Based on the recommendations of several experts, here are eight stocks that can rise 4-16 per cent in the next 3-4 weeks. Take a look:
Axis Securities
LIC Housing Finance | Previous close: ₹731.65 | Buying range: ₹725-711 | Target price: ₹804-825 | Stop loss: ₹675 | Upside potential: 13%
LIC Housing Finance has demonstrated a breakout above the ₹680-550 consolidation zone on the weekly chart, indicating the continuation of the medium-term 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 took support at the 38 per cent Fibonacci retracement level of a rally from ₹315 to ₹672, positioned at ₹540, confirming a medium-term support base.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
Natco Pharma | Previous close: ₹1,210.60 | Buying range: ₹1,185-1,163 | Target price: ₹1,296-1,330 | Stop loss: ₹1,113 | Upside potential: 10%
Natco Pharma has demonstrated a breakout above the cup and handle pattern on the weekly chart, with a strong bullish candle indicating the onset of an uptrend.
The volume activity increased at the breakout, indicating an influx of market participation at the breakout level.
It displays a bullish trend on the weekly chart, characterised by higher highs and higher lows, supported by an upward rising channel.
It recently took support at the lower band and is now heading towards the upper band.
The weekly strength indicator RSI has broken above a downward-sloping trendline, generating a buy signal.
Mayur Uniquoters | Previous close: ₹659.75 | Buying range: ₹640-628 | Target price: ₹732-765 | Stop loss: ₹585 | Upside potential: 16%
On the weekly chart, Mayur Uniquoters has broken out above a medium-term multiple resistance zone around ₹622 with a strong bullish candle, indicating the continuation of an uptrend.
The stock is trending in a higher high-low pattern on the weekly chart, indicating a medium-term uptrend.
It closed above the weekly upper Bollinger band, generating a medium-term buy signal.
The weekly strength indicator RSI has given a crossover above its reference line and broken through the downward-sloping trendline, thus generating a buy signal.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher
Lemon Tree Hotels | Previous close: ₹150.18 | Target price: ₹168 | Stop loss: ₹137 | Upside potential: 12%
This stock has witnessed a steady uptrend with a strong ascending channel pattern on the daily chart.
It indicates a breakout above the falling trendline at ₹145 level to improve the bias and indicate a further rise.
“With the RSI on the rise, indicating strength, there is much upside potential from the current levels. We suggest buying the stock for an upside target of ₹160-168 levels, keeping the stop loss at ₹137,” said Koothupalakkal.
Steel Authority of India (SAIL) | Previous close: ₹153.65 | Target price: ₹174 | Stop loss: ₹144 | Upside potential: 13%
This stock has witnessed a steep erosion recently from the peak of ₹175, with support taken near ₹125. It has recovered strongly to surpass the 100-period moving average (MA ) at ₹140, witnessing further pullback.
It has improved the bias by moving above the 50EMA (exponential moving average) level at ₹153 with a positive bullish candle formation on the daily chart, anticipating an upward movement in the coming days.
The RSI is technically well-placed at the current levels, making the chart look attractive again.
Titan Company | Previous close: ₹3,530.05 | Target price: ₹3,840 | Stop loss: ₹3,400 | Upside potential: 9%
The stock indicated a decent breakout above the falling trendline at ₹3,450 recently, breaching above the 50EMA level at ₹3,445.
Moving past the 200 period MA at ₹3,480 level improves the bias anticipating further rise in the coming days.
“With the RSI going strong with further upside potential visible from the current rate and with the chart technically looking good, we suggest buying the stock for an upside target of ₹3,680 and ₹3,840 levels in the coming days, keeping the stop loss of ₹3,400,” said Koothupalakkal.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Titan Company | Previous close: ₹3,530.05 | Buying range: ₹3,500-3,540 | Target price: ₹3,675 | Stop loss: ₹3,445 | Upside potential: 4%
Recently, Titan stock surpassed its previous swing high of ₹3,460 and is now maintaining a stable position above it, around the ₹3,500 mark.
It has also found support near the 200-day exponential moving average (DEMA) and the 21-day exponential moving average (EMA), making it an attractive buying opportunity.
On the indicator front, the daily RSI has broken through a bearish trendline that has persisted for five to six months, suggesting a bullish bias.
Aether Industries | Previous close: ₹854.90 | Buying range: ₹835-860 | Target price: ₹965 | Stop loss: ₹795 | Upside potential: 13%
Following a correction of roughly 80 points, or 9 per cent, Aether Industries shifted its course away from the prior support mark of ₹800.
This support level coincides with the lower Bollinger band, implying a potential rebound, particularly given the weekly RSI has broken through a bearish trendline that has persisted for 12 months, suggesting a bullish bias.
“Investors are advised to contemplate buying this stock within the range of ₹835-860, envisioning an upward trend with a target price of ₹965. To manage risk effectively, it is recommended to implement a stop loss order near ₹795, centred on daily closing figures,” said Patel.
Jubilant Foodworks | Previous close: ₹530.65 | Buying range: ₹522-532 | Target price: ₹600 | Stop loss: ₹485 | Upside potential: 13%
Jubilant Foodworks has two key technical analysis signals- a bull divergence on the daily Moving Average Convergence Divergence (MACD) indicator and a violation of a bearish trend line that had been in place for 3-4 months.
A bull divergence occurs when the stock price forms lower lows while the MACD indicator forms higher lows, indicating a potential reversal from a downtrend to an uptrend.
The breach of the bearish trend line suggests a potential shift in the stock’s direction from bearish to bullish.
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Disclaimer: The promoters of HT Media Ltd, which publishes Mint, and Jubilant Foodworks are closely related. There are, however, no promoter cross-holdings. 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.
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Published: 18 Jun 2024, 08:46 AM IST
#Stocks #buy #Titan #LIC #Housing #Finance #SAIL #among #stocks #rise #weeks #analysts
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