After an over 5% gain in October, Nifty is up nearly one percent in November so far thanks to healthy September quarter earnings and buying by foreign portfolio investors.
But there is no guarantee that the trend will sustain. Many analysts have started pointing fingers at the rich valuation of the market. With rates rising and inflation still at a multi-year high and a recession in the US looming, the road ahead for the market is full of thorns.
Analysts advise staying cautious in the market and betting on quality stocks with good fundamentals and sound technical structure.
Based on the recommendations of several analysts, here are 10 stocks that can give healthy returns in the short term.
Analyst: Sumeet Bagadia, Executive Director, Choice Broking
On the weekly chart, the stock embarked on strong traction as it is sustaining ₹6,700 level, confirming a bullish trend.
Moreover, it is trading above 21 and 50 DMA (daily moving average) on the daily chart, confirming the primary trend. RSI plotted on the daily timeframe is above 55, reflecting the stock's strong momentum.
The Bollinger band on the daily timeframe has started to expand with volume participation indicating volatility increasing for the upside move.
"One can initiate a long position at the current market price. However, on the safer side, one can also enter near ₹6,800 level. Closing and sustaining above ₹7,000 would lead towards ₹7,350-7,400 levels in the coming days," said the analyst.
JSW Steel is on a bullish trend and has broken out of an ascending triangle. The ₹710 level is designated as the breakaway zone.
The stock is trending and trading above the 21, 50 and 200 daily moving averages. RSI remains at 65 and MACD positive crossover confirms the trend.
DMI, considered an indicator of strength, is at 33, showing relative strength in the stock price movement.
Nifty Metal may outperform in the coming weeks, leading to a gain in JSW Steel.
"Based on pattern construction, a breakout from the current levels along with volume support will take JSW Steel to ₹745-755. A strict stop loss can be placed at ₹670," said the analyst.
Asian Paints had given a trend line breakout and saw a pullback to that trendline which acted as critical support and demand zone at ₹3,050.
Based on pattern construction, a reversal was seen in Asian Paints when it hit the demand zone of ₹3,050-3,100 levels.
For a few months, Asian Paints had been in a very big range of ₹3,500 to ₹3,000, where the stock is currently trading at ₹3,181 which is at the lower end of the chart range.
RSI was at oversold levels and then it reversed, which suggests that there is demand at lower levels.
Based on mean reversion, which usually occurs at the lower end of the consolidation pattern, Asian Paints can go up to ₹3,400 to ₹3,480 price range.
Analyst: Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
This stock witnessed a very sharp correction of nearly 14% between July and September 2022. The stock has been consolidating between ₹200-205 on an hourly scale and it has made a solid base near ₹203.
On October 3, 2022, it completed a bullish BAT pattern near the said range along with a complex structure on the daily RSI which hints towards a possible reversal in the counter.
"One can hold (if already bought) and add (if considering fresh buy) in the range ₹209-211. The upside is seen till ₹235 with a stop loss of ₹198 on a closing basis," said the analyst.
Glenmark Pharma observed a steep fall of 49% between July 2021 and June 2022. It has been consolidating between ₹360-400 and has made a solid base near ₹375 level.
On a weekly scale, this counter has formed an inverted bullish hammer near the support zone. Weekly RSI (relative strength index) has formed an impulsive structure which is adding more confirmation for the upside in the coming days.
A free fall between November 2021 to June 2022 resulted in a 43% decline in the stock price. On a weekly scale, it formed a bullish shark with a potential reversal zone of ₹960-990 along with double bottom near mentioned it which is adding more confirmation for early reversal in said counter.
Weekly RSI has formed a complex structure along with the MACD bullish cross which further confirms the upside in the counter.
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
This stock, after the consolidation phase near ₹142-145, has indicated a breakout moving past the significant 50EMA level of ₹147.
A perfect triangular pattern on the daily chart is formed wherein a move past ₹156-158 shall further strengthen the trend. The RSI indicator is also well-placed and is on the rise.
The stock, after a short consolidation phase near ₹730 has indicated a pullback to move past the significant 50EMA level of ₹736.
An ascending channel pattern on the daily chart has made the chart look attractive and a further rise is anticipated in the coming days.
"The RSI is getting stronger and a trend reversal has signalled a buy. We suggest buying and accumulating this stock for an upside target of ₹860 keeping the stop loss at ₹710," said the analyst.
Analyst: Pravesh Gour, Senior Technical Analyst, Swastika Investmart
This counter is in a classical uptrend, as it is moving in an uptrend channel formation. It has retested its previous breakout level and started its new upside leg with good volume on the daily chart. The stock has also broken its multi-month channel breakout, which looks lucrative.
This counter is in a conventional bullish uptrend as it has given a breakout of a bullish W-formation as well as a breakout of an inverse head and shoulder formation with a strong volume on the longer time frame.
It is trading above its all-important moving averages with higher highs and higher lows. "On the higher side, the stock is vulnerable at around ₹130; above this, we can expect a long rally till ₹160+, while on the lower side, ₹110 is the crucial support level in any correction," said the analyst.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.
