The US Fed's hawkish comment on the rate hike trajectory has bruised market sentiment. Following the Fed, the Bank of England and the European Central Bank also raised their interest rates by 50bps each while maintaining their hawkish stance in their fight against inflation.
In the near term, inflation, rate hikes and macroeconomic indicators will keep influencing the mood of the market.
As uncertainty prevails, trading in this market is challenging when valuation is also at a premium. Nevertheless, analysts see opportunities in this market.
Based on the recommendations of several analysts, here are 10 stocks that one can buy for the short term.
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock has made a positive candle pattern and has given a breakout on the weekly chart. The RSI also has indicated a buy signal by reversing its trend on the positive side.
"With the decent volume and other favourable indicators, we recommend a 'buy' in this stock with an upside target of ₹400, keeping a stop loss of ₹290," said the analyst.
The stock has made a higher bottom formation on the daily chart and with a reversal of trend in RSI. The stock looks attractive for an up move to scale new heights.
"The volume participation has been a decent one and with favourable indicators supporting, we recommend a buy in this stock for an upside target of ₹330, keeping a stop loss of ₹270," said the analyst.
The stock has made a double bottom pattern in the daily chart and has recovered gradually to maintain a positive bias.
"With the strong trend, we anticipate a further rise in the coming days. The indicators like RSI are on the rise with strength indicated and have immense upside potential to carry on the momentum further," said the analyst.
Analyst: Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
From April 2022, this counter observed a free fall from ₹526 to ₹331; it has now stabilized near its historical support of ₹325.
From the candlesticks pattern perspective, during October, this counter displayed a Doji, followed by a bullish harami with volume steadily increasing which is a hinting upside.
From the Indicator perspective, the daily RSI (relative strength index) has made an impulsive structure near the oversold zone, further confirming the counter's upside.
"One can buy in a small tranche at the current levels and buy another tranche at around ₹382 (if retested again). The upside target is expected till ₹435 and with a stop loss of ₹370," said the analyst.
From June 2022 to date, PNB has given a whopping return of nearly 130 percent. At the current juncture, it is sustaining above its historical resistance of ₹55 which is adding strength to the counter.
On the indicator front, weekly DMIs have made a super bullish structure alongside rising volume with the price which is a positive indication for further upside in the counter.
From September 2021, this counter observed a free fall from ₹6,080 to ₹4,070 and has stabilized near its historical support of ₹4,100.
From the candlesticks pattern perspective, in November 2022, this counter displayed a hammer pattern along with steadily increasing volume, hinting at an upside.
From the indicators perspective, the weekly RSI (relative strength index) has made a complex structure near the oversold zone, further confirming the counter's upside.
"One can buy in a small tranche at mentioned levels and buy another tranche at around ₹4,350 (if retested again). The upside target is expected at ₹4,800. Keep a stop loss of ₹4,250," said the analyst.
Analyst: Sumeet Bagadia, Executive Director, Choice Broking
The stock is trading in a broad-based channel with monthly support of ₹1,530. Also, on the daily timeframe, the stock has regained strength and sustained above the important support of ₹1,550 level.
Positive crossover in MACD is observed and RSI is sustaining within ₹45-50 range. In the last one month, the delivery volume has increased by more than 45 percent.
A bullish engulfing pattern was formed recently on the daily charts, confirming a bullish trend. Closing and sustaining above ₹1,605 will lead to ₹1,670-1,680 levels in the coming days.
"One can initiate a long position at the current market price or on the safer side, near ₹1,565-1,570 levels would be a better range to enter. Stop loss can be kept at ₹1,525," said the analyst.
Max Financial has been trading between ₹690-730 for the last couple of weeks. The 21 EMA (exponential moving average) remains at ₹698, suggesting immediate support.
The upward movement would resume once it sustains ₹715-720 levels. The stock is developing an inverted head and shoulder pattern on the daily chart, and a breakout of the neckline would confirm the bullish trend.
The RSI indicator has also recovered from lower levels and is currently trading comfortably near 53, indicating that the rising trend will continue.
"One can buy Max Financial at the current market price. It can be accumulated close to ₹690-695 levels for the target price of ₹755-760. If the price closes below ₹682, our analysis will be invalid," said the analyst.
While its main benchmark, the Nifty 500, is moving in the opposite direction, Balrampur Chini is displaying strength as it advances in a positive upward trajectory.
The stock recently crossed over its 200-day moving average at ₹367, and despite retesting that level a few days later, it has been able to maintain that position.
The script is gaining pace and is currently trading above its short, mid, and long-term moving averages.
The RSI, which is currently trading around 67 and has been quoting there for the past month, indicates that the script has not lost any momentum.
Strength indicator ADX is currently trading around 33, indicating that this move has excellent strength and will continue.
Analyst: Ravi Gangan, Technical Trader, Mehta Equities
Suryoday prices are moving in a well-channelised manner. The stock has gained traction post getting support from the lower trendline of the channel.
Currently, prices have the headroom to breach the target near ₹124 which comes near the upper trendline of the channel. On the downside, a break below ₹116 or a break below the channel will be a concern for a negative action.
TVS Motor is trading within the Bollinger bands range of ₹1,030-1,050. Since prices are trading above the middle Bollinger band, we could see the stock moving in an upward direction towards the upper band.
Once the upper end of the range is broken, the stock could see price movement towards ₹1,100 as long as ₹1,005 is intact on the downside.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.