The market has been on a bumpy track in 2022 so far due to multiple headwinds. Geopolitical tensions, inflation, aggressive rate hikes and the risk of a recession have kept investors on the tenterhooks.
This trend is likely to continue for some time. However, despite all uncertainty, a prudent and wise investor can find opportunities in stocks based on fundamental and technical factors.
"A significant trend in the market now is the intra-sectoral divergence in performance, that is some stocks within a sector marching ahead while others lagging behind," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services pointed out.
"The takeaway from this intra-sectoral divergence is that investors should adopt a bottom-up approach focusing on specific stocks rather than taking a top-down sectoral call," said Vijayakumar.
Based on analysts' recommendations, here are seven stocks that can give decent returns in the next 3-4 weeks. Take a look:
Analyst: Sumeet Bagadia, Executive Director, Choice Broking
On the daily chart, the stock has given a breakout of ascending triangle and managed to sustain above ₹270 levels which suggests upside movement in the counter.
Additionally, the stock has confirmed the hammer candlestick pattern suggesting a bullish momentum in the counter.
Furthermore, the stock has been trading above 21-day moving averages (DMAs) which shows a positive trend for the time being.
Daily momentum indicator 'stochastic' has shown a positive crossover which adds more bullishness to the price.
The stock is developing a double-bottom pattern on the weekly chart, which supports the stock's bullishness.
On the daily chart, the stock is trading above 21 simple moving averages (SMA), confirming the price action's support.
RSI plotted on the daily timeframe is above 50 levels which reflects the strong momentum in the stock. The 'Bollinger' band on the daily timeframe has started to expand with volume participation indicating that the volatility in the underlying is increasing for an upside move.
"Based on the above technical structure one can initiate a long position at the current market price. However, on the safer side, one can also enter nearby ₹130 levels. Closing and sustaining above ₹135 will lead toward ₹145-146 levels in the coming days," said the analyst.
On a monthly chart, the stock has been trading with higher highs and higher low formations which suggests an upside rally in the counter.
Furthermore, the stock has been trading with the support of 50 MMA (monthly moving average) which suggests a positive bias.
On a daily chart, the stock has been trading in a rising wedge formation and tested the lower band of formation which points out.
Daily momentum indicator stochastic shows a positive crossover which adds more bullishness to the price.
"As per the above technical parameters, the stock is looking bullish on charts. One can initiate a long position at the current market price and up to ₹127 levels for the target at ₹145-150 levels while on the downside, the support comes at ₹121 levels," said the analyst.
The price action of the stock suggests strong traction is possible above ₹545 levels confirming bullishness in the stock.
The stock is trading above 50 simple moving averages, confirming the support in price action. The stock is trading above the middle Bollinger band and a positive crossover is indicated in RSI and MACD suggesting continuity in the bullish trend in the near term.
Sustained high volume after consolidation points out buying interest among the short-term traders.
"Based on the above technical structure, one can initiate a long position at the current market price. However, on the safer side, near ₹530 level would be a better range to enter. Closing and sustaining above ₹545 will lead towards ₹575-580 levels in the coming days," said the analyst.
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock, after a long consolidation near ₹525, is slowly getting out of the range with improving bias on the daily chart showing strength.
It is anticipated for a further upward move in the coming days. The RSI indicator also is gradually on the rise and getting stronger suggesting immense upside potential to carry on the momentum still further.
The stock has maintained the trendline support near ₹664. It has once again picked up momentum to witness a pullback with improved bias on the daily chart.
The trend is getting stronger and the stock is anticipated to rise further in the coming days. The RSI has indicated a trend reversal to signal a buy.
The stock has been consolidating near ₹4,220- ₹4,240 levels, taking support near the channel trendline base.
It has slowly shown improvement moving above the significant 200DMA, suggesting a further rise in the coming days.
The RSI indicator is well-placed and is on the rise to indicate strength.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.