scorecardresearchIdeas for investing: Analysts recommend these 10 stocks to get decent returns

Ideas for investing: Analysts recommend these 10 stocks to get decent returns in the short term

Updated: 01 Aug 2022, 03:21 PM IST
TL;DR.

  • Mixed earnings, faltering economic growth and geopolitical issues remain major headwinds for the market going ahead. As uncertainty persists, analysts advise betting on quality stocks at this juncture. 

For the short term, stocks that look attractive on technical charts can be good bets. Photo: Unsplash

For the short term, stocks that look attractive on technical charts can be good bets. Photo: Unsplash

The month of July turned out to be a month of July for investors as the market benchmarks the Sensex and the Nifty jumped 9% each in the month.

A less hawkish tone of the US Fed, the return of foreign investors to the Indian market and the hopes that the pace of the rate hikes will slow down as the economy is showing signs of stress seem to have boosted market sentiment.

However, the rally has many speed-breakers. Mixed earnings, faltering economic growth and geopolitical issues remain major headwinds for the market going ahead.

As uncertainty persists, analysts advise betting on quality stocks at this juncture. For the short term, stocks that look attractive on technical charts can be good bets.

Based on the recommendations of various experts, here are 10 stocks that can give healthy returns in the next 3-4 weeks. Take a look:

Analyst: Santosh Meena, Head of Research, Swastika Investmart

This counter is witnessing a breakout of bullish flag formation on the daily chart to resume its classical bullish trend. It created a strong base at 600 and then witnessed a breakout of 700 resistance level for the fresh expansion phase where it is respecting its 20-day moving average (DMA) beautifully and trading above its all-important moving averages.

Momentum indicators are positively poised to support the current momentum. On the upside, 850 is an immediate resistance then 920 is the next target level.

This counter witnessed a breakout of falling wedge formation on the daily chart and managed to close above its 200-DMA. On an immediate basis, 830 is an important hurdle, above this, we can expect a rally towards 887/945.

On the downside, a cluster of moving averages at 740 will act as a major support level. Momentum indicators are positively poised to support the current bullish momentum.

This counter witnessed a breakout of classical symmetrical formation with heavy volume to resume its bullish momentum.

On the downside, a cluster of moving averages around 200 has become a strong base while on the upside, 251/265 are immediate target levels. Momentum indicator RSI is showing strong positive bias after creating base at the 50 mark whereas the MACD is crossing the centerline with positive divergence.

Analyst: Aamar Deo Singh, Head Advisory, Angel One

Coal India has broken out of a consolidation zone, with prices trading consistently above the 200 mark. Volumes have been above average, further indicating bullish strength.

This stock has bounced back sharply from an oversold zone and has breached the crucial resistance zone of 180-185. Sustaining above the 200 mark, the stock has the potential to rally towards 220-225 levels, in the short term.

Analyst: Jigar S. Patel, Sr. Manager - Equity Research, Anand Rathi share and stock brokers

This stock has corrected almost 43% from its top of 1,837.75 which was made on December 30, 2021. From June 15, 2022, to July 15, 2022, it had 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.

In addition to the above-discussed technical rationale, the counter has confirmed a breakout from the trading range of 930-1000 and has closed near the 1,049 mark.

RIL seems to be oversold and we are witnessing a positive crossover on MACD on the daily scale along with RSI rebounding from the 45 level on the daily chart.

This indicates the possibility of a bounce in the coming sessions. In addition, we are witnessing a pair of Doji candlesticks pattern on a daily scale.

For the last few sessions, the counter has broken the upper side of the trend line and recently it confirmed a breakout from this trend line on a closing basis.

On the weekly chart, this stock has taken support near its previous historical support zone of 850-860. For the last two weeks, it has been making a nice base near the 900 level.

Recently on the weekly scale, the stock confirmed a 'bullish harami' candlestick pattern exactly at the mentioned historical support and that could be a sign of early reversal.

In addition to the above-discussed technical reasoning, the counter has displayed impulsive structure on RSI weekly scale which is adding more strength to the said counter.

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

The stock has maintained a good support zone near 2,370. Currently, it has picked up momentum to improve the bias with a series of bullish candle patterns. A breach above the significant 200DMA level of 2500 would further strengthen the trend.

The RSI has improved from the oversold zone showing a trend reversal and has the potential to rise further in the coming days.

The stock remained above the trendline resistance zone of 1,360 and after a short dip from the 1,470 level, it has again regained strength with a bullish candle pattern with improving bias and further upside move is anticipated.

A cross above the 1,470 level would further strengthen the trend and as the RSI is on the rise, it has much upside potential left.

This stock has recently indicated a breakout above the triangular pattern in the daily chart and after a short correction has again shown strength with a reversal to improve the bias and anticipate further upside moves in the coming days.

A move past the significant 50EMA (exponential moving average) level of 3,510 would further strengthen the bias and with the RSI also on the rise, it has suggested immense potential on the upside.

"With the chart looking attractive and with favourable risk reward ratio, we suggest buying and accumulating this stock for an upside target of 3,900 keeping the stop loss at 3,220 level," said Parekh.

Disclaimer: The views and recommendations made above are those of individual analysts or broking firms and not of MintGenie.

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First Published: 01 Aug 2022, 03:21 PM IST