scorecardresearchAnalysts recommend these 12 stocks that look poised for gains in short

Analysts recommend these 12 stocks that look poised for gains in short term

Updated: 29 Aug 2022, 01:09 PM IST
TL;DR.

  • The domestic market is witnessing strong bouts of volatility. While fears of rate hikes are weighing on sentiment, the resilience of the domestic economy and foreign fund inflow is underpinning sentiment.

Analysts point out that although Indian equities are trading at a premium over other emerging markets, the consistent support from FIIs is guiding the domestic market.

Analysts point out that although Indian equities are trading at a premium over other emerging markets, the consistent support from FIIs is guiding the domestic market.

Equity barometer the Sensex opened with a deep cut of 1,466 points at 57,367.47 on August 29 as the hopes for milder rate hikes were dashed after the US Fed chair at the Jackson Hole symposium said rate hikes will continue even though it will be painful.

Following the Fed chair's speech, the US equities fell sharply while the US dollar and 10-year yields rose. Global markets mirrored the trend of the US market.

The domestic market is witnessing strong bouts of volatility. While fears of rate hikes are weighing on sentiment, the resilience of the domestic economy and foreign fund inflow is underpinning sentiment.

Analysts point out that although Indian equities are trading at a premium over other emerging markets, the consistent support from FIIs is guiding the domestic market.

Amid the uncertainty, analysts recommend buying stocks that look poised for gains on the technical charts in the short term.

Based on recommendations by various experts, here are 12 stocks that you can consider buying for the next 3-4 weeks:

Analyst: Santosh Meena, Head of Research, Swastika Investmart

This counter is bottoming out with a breakout of a bullish inverse head and shoulder formation. It manages to close above its 200-DMA (daily moving average) and it is trading above its all-important moving averages.

Momentum indicators RSI and MACD are witnessing positive crossover followed by a bullish divergence. On the upside, 310-320 is an immediate target area while a 20-DMA of 255 will act as an immediate support level.

This counter is coming out of a long consolidation with a breakout of the symmetrical triangle formation. It also managed to close above its all-important moving averages on the daily chart.

On the upside, 675 will be an important hurdle then 750 will be the next target level. On the downside, the 540-520 area has become a strong demand zone. The base of 500 was made exact at 50% retracement of the previous rally. Momentum indicators are positively poised to support the current rally.

This counter is showing strong bullish momentum and it is forming a bullish flag formation to resume its uptrend. It is respecting its 20-DMA beautifully and is trading above its all-important moving averages.

It has relative strength over its peer and is ready to break out on the upside for the next leg of the rally. On the upside, 1,333 is an immediate resistance; above this, we can expect a swift move towards the 1,425 level.

On the downside, the 1,270-1,250 area will act as a demand zone. Momentum indicator RSI is taking support at the 60 level and is ready to resume its positive momentum.

Analyst: Jigar S. Patel, Sr. Manager - Equity Research, Anand Rathi

From June 15, 2022, to July 15, 2022, this stock has been consolidating near the crucial support zone of 930-1,000.

Recently the stock confirmed a 'tweezer' bottom candlestick pattern exactly at the mentioned support followed by healthy positive volumes and that could be a sign of early reversal.

Moreover, the counter has confirmed a breakout from the trading range of 930-1,000 and has closed near the 1,060 mark.

Indus Tower seems to be oversold and we are witnessing a positive crossover in MACD on the daily scale along with RSI displaying impulsive structure near 30 levels on the daily chart.

This indicates the possibility of a bounce in the coming sessions. In addition, on the daily chart, the stock is at the potential reversal zone of the bullish bat pattern i.e. 195-200.

During July, this stock had been consolidating near the crucial support zone of 3,400-3,700. Recently the stock confirmed a hammer candlestick pattern exactly at the mentioned support followed by healthy positive volumes and that could be a sign of early reversal.

Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher

The stock has been in a gradual rising trend and is on the verge of a trendline breakout above the 1,640 levels and the indicators look favourable for further upward movement in the coming days.

"The RSI is on the rise to improve the bias and with good volume participation witnessed, we recommend a buy in this stock for an upside target of 1,850 keeping a stop loss of 1,600," said Parekh.

The stock has been in a trending mode with a series of higher bottom formation patterns and currently, the support has been formed near 260 levels. We anticipate a further rise to reach the 200DMA, which is around 306 level in the coming days.

"The RSI is also on the verge of a trend reversal to improve the bias and with the chart looking attractive with good volume participation witnessed, we recommend a buy in this stock for an upside target of 325 keeping a stop loss of 260," said Parekh.

The stock after a huge correction right from 9,694 to 3,700 levels has been consolidating for quite some time at around 3,700 - 4,000 levels and has now given a positive bullish candle with good volume participation.

The RSI has also indicated a trend reversal signalling a buy and we anticipate there is a huge potential for more upside targets.

Analyst: Ravi Gangan, Technical Trader, Mehta Equities 

M&M is classically moving in an upward rising channel with a strong steepness pointing in the north direction. The breakout level awaits near 1,280-1,290 post which prices can breach on the upside towards 1,400 and higher levels.

This target level arrived based on the channelling technique wherein prices have the headroom on the upside towards the upper trend line.

On the downside, 1,205 seems to be the support level which is at the lower trend line of the channel made on the daily timeframe chart.

Prices of Tata Coffee are moving in a rectangular channel which suggests the overall trend to be sideways. However, post the whipsawing of the stock between the trend lines of the channel, we will see a breakout upside.

The breakout on the upside is supported by the study of Bollinger bands where the bands are seen widely expanding on the upside. For stop loss and support levels, near 229 is ideal as prices might see short-term retracement towards these levels.

India Cement has taken a gradual upside trajectory from the current levels. Bollinger bands have squeezed awaiting the expansion on the upside. 

Since prices are trading between the upper and middle Bollinger bands there is a strong possibility of seeing an upside breakout. 235 will be an ideal target given prices move with the same momentum post break out from current levels.

On the downside, a stop loss below 200 will be ideal as prices had started gaining momentum from this level which will now act as support to the above trade setup.

Disclaimer: The views and recommendations are those of individual analysts, not MintGenie.

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First Published: 29 Aug 2022, 01:09 PM IST