Equity benchmark the Nifty is close to the psychologically important level of 18,000 even as volatility continues amid risks of aggressive rate hikes and a consequent recession in major economies like the US and the UK loom.
The Indian market is outperforming most of its global peers, thanks to the positive macroeconomic outlook. Some analysts believe this market has more steam left.
"The most important bullish factor that has caused and is sustaining India's market outperformance is the strong growth recovery underway in India now. RBI's report which puts bank credit growth now running at 15.5% is an endorsement of this fact. Even though valuations are high it appears that this rally has more steam to go up," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
There may be more upside left in the market but considering the rich valuation and global cues, uncertainty is likely to linger. In this case, blind bets can be extremely harmful.
"I won't be surprised if we test a new all-time high very soon. However, while new highs are definitely worth cheering, it is also a time for stock-taking and exiting out of stocks that have run up a great deal or where fundamentals have taken a turn for the worse. To that extent, caution needs to be exercised," said Rahul Shah, Co-Head of Research, Equitymaster.
Analysts recommend these 15 stocks to buy at this juncture as they believe these stocks can give healthy returns in the next 3-4 weeks. Take a look:
Analyst: Sumeet Bagadia, Executive Director, Choice Broking
On a monthly chart, this stock has been trading with the support of a lower band of Bollinger which suggests a positive bias. It has formed a strong base around ₹720 levels while ₹760 will be a resistance level crossing above the same can show more upside rally.
On a daily chart, the stock has given a breakout of falling trendline and consolidating near to resistance zone which points out strength in the counter.
A daily momentum indicator Stochastic shows positive crossover which adds more bullishness to the price. As per the above technical parameters, the stock is looking bullish on charts and crossing above ₹760 can show more strength in the counter for the target at ₹820-860 levels while on the downside, the support comes at ₹720 levels.
On the weekly chart, the stock has given a breakout of resistance i.e. ₹2,775 which suggest upside movement in the counter.
The stock is trading above 21 simple moving averages, confirming the support in price action. Moreover, it has given a breakout of a cup and handle formation on the daily chart.
RSI plotted on the daily and the weekly timeframe is above 50 levels which reflects the strong momentum in the stock.
"Based on the above technical structure one can initiate a long position at the current market price. However, on the safer side, near ₹2,820- ₹2,800 would be a better range to enter. Closing and sustaining above ₹2,900 will lead towards ₹3,000-3,060 levels in the coming days," said the analyst.
On a weekly chart, the stock has been trading with higher high and higher low formation for the last three weeks which suggests continued strength upside.
On a weekly chart, the stock has given a breakout of rising wedge formation which points out strength in the counter.
On a daily chart, the price has been trading above the upper leg of the “Bollinger" band which suggests a bullish rally will continue further in the near term.
Moreover, the stock has been trading with the support of 21 DMA (daily moving average); a 'super trend' on a daily chart also adds bullishness to the prices.
Analyst: Santosh Meena, Head of Research, Swastika Investmart
The counter is coming out of a downsloping channel formation with a breakout of an inverse head and shoulder formation. It is trading above its all-important moving averages with a positive bias in momentum indicators.
MACD is trading above the centerline, RSI is holding above the 60 mark whereas ADX is above the 30 levels, indicating strength in the trend. On the upside, ₹190 is an immediate target while on the downside, a 20-DMA of ₹155 is an important support level.
The counter has relative strength to the Nifty IT index where it is trading above its all-important moving averages. It forms higher highs and higher lows formation followed by a breakout of falling wedge formation on the daily chart.
It is respecting its 200-DMA beautifully and is ready to gain momentum for the fresh leg of expansion. On the upside, ₹600 is an immediate hurdle then ₹630 will be the next target level. On the downside, 200-DMA of ₹550 is an immediate and important support level.
The counter took support at 50% retracement of the previous rally followed by a meaningful correction. Now, it is witnessing a breakout of a bullish inverse head and shoulder formation with decent volume and it managed to close above its all-important moving averages.
Momentum indicators are positively poised to support the current strength of the trend. On the upside, ₹940/970 are immediate target levels while on the downside, a 20-DMA of ₹835 is a strong support level.
Analyst: Jigar S. Patel, Sr. Manager - Equity Research, Anand Rathi Share and Stock Brokers
Since September 2021, this counter observed a free fall from ₹6,175 to ₹4,070 and it has stabilized near its historical support of ₹4,100.
In August 2022, this counter displayed a pair of Dojis, followed by a bullish engulfing pattern along with volume steadily increasing which is hinting upside.
Weekly RSI (relative strength index) has made complex structure near oversold zone which further confirms upside in counter.
"One can buy in small tranche at the current levels and buy another tranche at around ₹4,250," said the analyst.
Gujarat Gas has corrected almost 49% from its top of ₹780 which was registered on August 2, 2021. On the weekly scale, it has taken support near ₹420-430 levels.
Recently on a weekly scale, the stock confirmed a 'bullish inverted hammer' candlestick pattern followed by a bullish piercing pattern precisely at the mentioned support levels and that is adding more confirmation of further upside in the counter.
In addition to the above-discussed technical reasoning, weekly RSI has displayed impulsive structure near the oversold zone which is adding more strength to the said counter.
The stock ONGC has been making lower highs and lower lows since March 2022 which resulted in a 38% correction.
At the current juncture, it has made a nice base near its historical support of ₹130 as some buying resumed during the last couple of months along with volume activity increasing.
Daily RSI (relative strength index) has bounced back after taking support near 40 levels which further confirms the upside in the counter.
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
After a short correction, the stock has indicated a higher bottom formation on the daily chart taking support near ₹3150 levels. With a positive bullish candle pattern, it is currently moving past the significant 50EMA level of ₹3,260. It has shown improvement in the bias with strength.
"The RSI also has shown a trend reversal to signal a buy and with the chart pattern looking attractive we suggest buying and accumulating the stock for an upside target of ₹3,670 keeping the stop loss at ₹3,100," said the analyst.
The stock, after the recent dip, has maintained a bottom near the ₹1,445-1,450 zone. It is giving a decent pullback with the current candle pattern being bullish indicating strength and turning the bias positive moving past the significant 50 EMA level of ₹1,517.
"The RSI also is well placed with a reversal indicated and further rise is anticipated. We suggest buying and accumulating the stock for an upside target of ₹1,660 keeping the stop loss at the ₹1,450 level," said the analyst.
The stock has improved its overall bias, indicating a rising trend moving within a channel pattern. Currently, a positive candle pattern is visible, so the further upside potential is visible in the coming days.
"With the RSI also improving and showing a trend reversal has signalled a buy and we suggest to buy this stock for an upside target of ₹540 keeping the stop loss of ₹465," said the analyst.
Analyst: Ravi Gangan, Technical Trader, Mehta Equities
The stock is giving higher highs and lows for the last few weeks. The key hurdle now is at the psychological ₹700 mark. Above ₹700, expect fireworks till ₹725/751 zone. Aggressive targets at ₹801 mark with inter-month perspective.
"Currently, as seen on charts, the stock is on the verge of breakout with the supported price level near ₹665 which can act as stop loss, so as long as this support intact upward momentum is seen crossing above ₹700 soon," said the analyst.
The stock had been consolidating until August 22. Now, there has been a considerable up move which can take the stock towards psychological ₹100 mark.
"Keep a strict stop at ₹45 (from where prices have started rallying). Aggressive targets can be seen till ₹135 mark as well with inter-month perspective," said the analyst.
The airline stock is whipsawing near the ₹1,900-2,000 level, minor volatility around these levels can be seen for a few sessions.
However, we might see price stability above ₹2,000 levels which could lead the stock in an upward direction supported by indicators such as RSI and MACD turning upside.
"On the downside, the support level comes near ₹1,845. Aggressive target might be seen towards ₹2,250 provided prices sustain above ₹2,100 on a closing basis on medium- long term perspective," said the analyst.
Disclaimer: The views and recommendations given in this article are those of individual analysts and broking firms. These do not represent the views of MintGenie.