scorecardresearchRoad ahead remains tough for the market; analysts recommend these 8 stocks

Road ahead remains tough for the market; analysts recommend these 8 stocks for the short term

Updated: 12 Jul 2022, 01:22 PM IST
TL;DR.

  • Analysts advise betting on quality stocks at this juncture. Here are 9 stocks suggested by various experts that can give up to 21% return in the next 3-4 weeks.

The road ahead of the market is still gloomy even as most of the negatives are factored in. Photo: Unsplash

The road ahead of the market is still gloomy even as most of the negatives are factored in. Photo: Unsplash

The market has been volatile this year so far amid concerns over higher inflation, rate hikes and the possibility of a recession.

The road ahead of the market is still gloomy even as most of the negatives are factored in. Macroeconomic data, geopolitical issues and quarterly earnings will be the key factors that will decide the course of the market going ahead.

Analysts advise betting on quality stocks at this juncture. Here are 8 stocks suggested by various experts that can give up to 21% return in the next 3-4 weeks. Have a look:

Analyst: Sumeet Bagadia, Executive Director, Choice Broking

On the monthly 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 given a breakout of inverse head & shoulder pattern which bullish reversal pattern suggest northward journey in the counter. It has been trading above the 21-day moving average which shows a positive trend for the time being.

On the weekly chart, the stock has reversed from 645, which is a 50% retracement level of its up-move which shows northward movement in the counter.

Daily momentum indicator 'Stochastic' has shown positive crossover and bounced from the oversold zone which adds more bullishness to the price.

On the weekly chart, the stock has formed a 'hammer' candlestick pattern with an increase in volume which suggests upside movement in the counter.

Additionally, the price has bounced from the horizontal line as well as trading with higher high and higher low formation from three weeks on the weekly timeframe suggesting strength in the counter.

Furthermore, the stock has been trading with the support of 21Daily Moving Averages which shows a positive trend for the time being.

On an hourly chart, the stock has given a breakout of double bottom pattern which indicates upside momentum.

Daily momentum indicator MACD has shown positive crossover which adds more bullishness to the price.

In the daily chart, prices have rebounded from their lower levels and are sustaining above 2150, an important level.

Price is moving in a Higher High and Higher Low pattern confirming the bullishness in the price action. Stock is sustaining with the support of 50 Daily moving averages.

Indicators such as RSI and MACD are indicating positive crossover on the daily timeframe. An increase in volume with price confirms the uptrend.

Analyst: Jigar S. Patel, Sr. Manager - Equity Research, Anand Rathi Shares & Stock Brokers

The stock of Power Grid has corrected almost 17% from its recent top of 248 which was made on May 10, 2022.

In June 2022, it had been consolidating near the crucial support zone of 205-215. Recently, the stock confirmed a bullish piercing 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 205-215 and has closed near the 219 mark. T

Tata Chemicals seems to be oversold and we are witnessing a positive divergence in 'Awesome Oscillator' on the daily scale along with the impulsive structure in RSI near the oversold zone.

This indicates the possibility of a bounce in the coming sessions. In addition, we are witnessing a bullish 'harami' candlestick pattern formation again on the daily scale.

For the last few sessions, the counter had been trading in the range of 780-830 and recently it confirmed a breakout from this range on a closing basis.

Analyst: Jatin Gohil, Technical & Derivative Analyst, Reliance Securities

Since September 2021, the stock has been oscillating due to profit booking and after a double bottom formation, it has created a higher low as well.

On the week ended July 8, 2022, the stock breached its prior falling trend and rose to 6-week closing high, where volume was above average.

Its weekly RSI gave a buy signal after a bullish divergence which could take the stock towards 718-753-780 in the short term. In case of any decline, the stock will find support around its recent higher low formation, which is placed at 585.

On the week ended July 8, 2022, closing above its 200-week simple moving average (SMA), the stock breached its prior bearish jinx, as it used to reverse after testing that moving average and did register noticeable falls.

Spike in volume and rise in future open interest (OI) signals that major market participants are in favour of the bulls.

The key technical indicators are positively poised on short-term timeframe charts. We believe the stock may witness a follow-up move.

This could lead the stock towards 224 initially and 244 subsequently. On the lower side, the stock will find support around its prior month’s lowest level, which is placed at 164.

The stock tested its 61.8% Fibonacci Retracement level of prior mega up-move ( 403-2,548), which was placed at 1,220 in Jun’22.

After forming a base around that level, the stock witnessed a strong rebound. Its weekly RSI gave a buy signal post a bullish divergence.

We believe the stock is on the verge of a turnaround. The stock has the potential to move towards 1,640 initially and 1,730 subsequently in the short term.

In case of any decline, the stock will find support around its upper band of the base.

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: 12 Jul 2022, 01:22 PM IST