The market has been volatile in the year so far as concerns over aggressive rate hikes, recession and geopolitical issues have been mounting.
Nifty is near 17,100 at present and analysts do not see much upside in the index in the near term.
While the sentiment is sombre, there are opportunities also; select sectors and stocks are still experiencing healthy momentum.
Analysts recommend buying these six stocks for the short term as they look attractive on technical charts. Take a look:
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock, after a short correction, bottomed out near the trendline support zone of ₹338-340 and indicated a decent pullback with bias improving.
A positive bullish candle pattern visible on the daily chart has made it attractive and further rise is anticipated in the coming days.
The RSI indicator has shown a decent reversal to strengthen the trend and has signalled a buy with the further upward move expected.
The stock has almost made a double bottom pattern on the daily chart taking support near ₹410 and has picked up momentum with decent pullback and with a series of positive candle patterns.
The RSI also has shown a trend reversal from the oversold zone to signal a buy and is anticipated to rise further in the coming days.
The stock has attained the lower trendline support zone of the channel pattern on the daily chart near ₹420. It has indicated a pullback for improvement in the bias and a further upward move is anticipated.
The RSI has shown a trend reversal from the highly oversold zone to signal a buy and with the chart looking attractive with a decent risk-reward ratio is anticipated to rise further in the coming days.
Analyst: Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
IndusInd Bank has been constantly hovering around the upper Bollinger band on the weekly scale. It has not even tested the 20-day moving average line since August 2022 which confirms its solid uptrend.
In addition, the counter is trading above 50, 100, and 200 days EMA (exponential moving average), further confirming the uptrend.
Weekly stochastic is overbought along with weekly RSI (relative strength index) at 70 is setting the positive tone which can take it till ₹1,340 levels.
"One can hold and add in the range ₹1,213-1,215 with upside expected till ₹1,340 with a stop loss of ₹1,150 on a closing basis," said Patel.
This stock has witnessed a very sharp correction of nearly 14% between July and September 2022. Since then, the stock has been consolidating between ₹198-204 on an hourly scale. It has made a solid base near ₹203.
On October 3, 2022, it completed a bullish special Gartley pattern near the said range along with the complex structure on 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 ₹205-206. The upside is seen till ₹228 with a stop loss of ₹ ₹195 on a closing basis," said the analyst.
Adani Ports witnessed a free fall between September 20, 2022, to October 3, 2022, which resulted in a 22% correction.
Since then the stock has been constantly giving bullish divergence signals on hourly charts. Moreover, 200-day EMA and 0.618 retracements are falling at the same place which is also the low tested on October 3, 2022.
On the indicator front, the daily RSI has shown impulsive structure near the oversold zone which is adding more confirmation for further upside in the counter.
"One can hold (if already bought) and add (if considering fresh buy) in the range of ₹816-818. The upside is seen to ₹880 with a stop loss of ₹780 on a closing basis.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.
