Indian equity benchmarks the Sensex and the Nifty ended with gains of over a percent on July 18. However, most analysts believe the market may not be able to hold the gains as concerns over inflation, rate hikes and a recession loom.
"As concerns of growing inflation and recession hang over the global economy, Indian benchmark indices may remain uncertain in the near term. In this context, investors are anticipated to keep a close watch on the currency market, as the USD/INR has reached new all-time lows of 80.23," said Apurva Sheth, Head of Market Perspectives, Samco Securities.
"With the earnings season in full swing, market players should avoid reading too much into India Inc.'s numbers and instead focus on the management commentary. Investors are advised to remain put and search for opportunities to raise their weightage in quality players," he added.
So, how to invest for the short term in uncertain times? Analysts advise picking stocks that look attractive on charts. Here are 7 stocks that analysts believe can give decent returns in the next 3-4 weeks. Have a look:
Analyst: Jigar S. Patel, Sr. Manager - Equity Research, Anand Rathi share and stock brokers
Bajaj Finance | Target price: ₹6,500 | Stop loss: ₹5,600
This stock has corrected almost 28% from its recent top of ₹7563 which was made on April 4, 2022. In June 2022, it had been consolidating near the crucial support zone of ₹5,200-5,600.
Recently the stock confirmed a 'hammer' candlestick pattern exactly at the mentioned support along with rising 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 ₹5,200-5,600.
Mahanagar Gas (MGL) | Target price: ₹875 | Stop loss: ₹750
MGL seems to be oversold and we are witnessing a positive divergence in the 'Awesome' oscillator on the weekly scale along with bat action magnet structure in RSI near the oversold zone.
This indicates the possibility of a bounce in the coming sessions. In addition, we are witnessing a double bottom structure again on the weekly scale. Since the past 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.
Analyst: Sumeet Bagadia, Executive Director, Choice Broking
SRF | Target price: ₹2,480 | Stop loss: ₹2,140
On a weekly chart, the stock has bounced from the previous support level and formed a bullish candle which suggests upside movement in the counter.
Furthermore, the stock has taken support from a falling trendline which suggests an upside rally in the upcoming days.
Furthermore, the stock has been trading above the 21-day moving average which shows a positive trend for the time being.
Daily momentum indicator 'Stochastic' has shown positive crossover and bounced from the oversold zone which adds more bullishness to the price.
Escorts Kubota | Target price: ₹1,840 | Stop loss: ₹1,580
In the daily timeframe, the stock is moving in a higher high –higher low formation suggesting a bullish trend and may continue its ongoing trend.
The scrip has taken support of 50 and 20-day simple moving averages. It has given a breakout of the resistance zone of ₹1650 and is sustaining the said levels.
Positive crossover in MACD is observed and RSI is sustaining above 60 levels as well. The breadth indicator suggests a rise in on-balance volume, confirming positive volume flow in scrip.
Analyst: Santosh Meena, Head of Research, Swastika Investmart
ICICI Bank | Target price: ₹850 | Stop loss: ₹725
The counter has witnessed the breakout of the symmetrical triangle formation with relative strength to Bank Nifty. It is trading above its all-important moving averages with a positive bias in momentum indicators.
On the upside, ₹790 is an immediate hurdle after which we can expect a move towards ₹850. On the downside, 200-DMA of ₹740 is immediate support while ₹730 is a sacrosanct support level.
ABB India | Target price: ₹2,950 | Stop loss: ₹2,400
The counter is in strong bullish momentum where it is forming a bullish flag formation followed by a multimonth breakout.
There was a breakout of a bullish cup and handle formation which is suggesting a target of ₹2950 on the upside. On the downside, ₹2400 will act as an immediate and strong support level. Momentum indicators are supporting the current bullish momentum.
J Kumar Infraprojects | Target price: ₹380 | Stop loss: ₹290
The counter is in strong bullish momentum where it is resecting its 20-DMA beautifully and now it is witnessing a breakout of ascending triangle formation with decent volume.
It is resuming its momentum for a move towards the ₹380 level while rising 20-DMA of ₹293 will act as an immediate support level. Some of the momentum indicators look overbought but they may remain overbought for some more time.
Disclaimer: The views and recommendations made above are those of individual analysts or broking firms and not of MintGenie.
