After hitting their 52-week highs, the market benchmarks are witnessing profit-booking, indicating the sentiment is still fragile and the market is not able to sustain the gains.
Uncertainty in terms of rate hikes, recession and geopolitical tensions continue to prevail. Picking quality stocks is the only way to maximise gains and minimise losses in this market, say analysts.
Based on the recommendations of various analysts, here are 9 stocks that one can bet on for the next 3-4 weeks:
Analyst: Sumeet Bagadia, Executive Director, Choice Broking
The price action of the stock suggests strong traction is expected above ₹2,000, confirming bullishness in the stock. The stock is trading above 20 and 50 DMA (daily moving average), indicating strength in price action.
The stock is trading above the middle Bollinger band and a positive crossover is indicated in RSI and MACD which suggests continuity in the bullish trend in the near term.
Sustaining high volume points out buying interest among short-term traders. Moreover, it is also forming higher high higher low formations in the daily chart.
"Based on the above technical structure, one can initiate a long position at the current market price. However, on the safer side, near ₹1,935-1,940 levels would be a better range to enter. Closing and sustaining above ₹2,000 will lead to ₹2,100-2,120 levels in the coming days. Stop loss can be kept at ₹1,875," said the analyst.
Hindustan Unilever sustained ₹2,450 level last week, where 200 EMA (exponential moving average) is placed.
Trend line analysis shows it is taking crucial support at ₹2,420 to ₹2,450 levels. Buying was seen in HUL on November 21 where the FMCG index witnessed selling, suggesting that ₹2,450 is a good support level.
RSI is placed at 42 and there is a positive crossover suggesting a change in momentum for HUL.
Pidilite is on a steady uptrend after finding support at the 100-day exponential moving average (EMA) of ₹2,580.
"As this move is supported by high volumes and a positive RSI crossover, we could witness a potential range breakout," said the analyst.
Pidilite is forming a falling wedge pattern on the daily chart. As the reaction highs and reaction lows converge, the price action forms a cone that slopes downward.
MACD has also shown a bullish crossover and is currently trading above the zero line.
Analyst: Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
Glenmark Pharma witnessed a very sharp correction of 49% between July 2021 and June 2022. Since then, the stock has been consolidating between ₹360-400. It has made a solid base near ₹375 level.
On a weekly scale, this counter has formed an inverted bullish hammer near the support zone. Weekly RSI has formed an impulsive structure which is adding more confirmation for the upside in the coming days.
This counter witnessed a fall from ₹526 to ₹331 and stabilized near its historical support of ₹325.
In October, this counter displayed a Doji, followed by a bullish harami along with steadily increasing volume which is hinting an upside.
Daily RSI (relative strength index) has made an impulsive structure near the oversold zone which further confirms the upside in the counter.
"One can buy in a small tranche at current levels and buy another tranche at around ₹340 level (if retested again," said the analyst.
This counter observed a free fall from ₹6,080 to ₹4,070 and stabilized near its historical support of ₹4,100.
In August 2022, this counter displayed a pair of 'Dojis', followed by a bullish engulfing pattern along with volume steadily increasing which is hinting an upside.
Weekly RSI (relative strength index) has made a complex structure near the oversold zone which further confirms an upside in the counter.
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock, after the short correction, has consolidated near ₹305 which is the trendline support zone. Currently, with a pullback, it has shown improvement in the bias and is anticipated to rise further.
The RSI indicator, which is well-placed and has immense upside potential, has indicated a trend reversal to signal a buy.
The stock witnessed a short correction and took support near the trendline level of ₹740. Thereafter, a gradual rise has indicated a pullback with a positive candle to improve the bias and with a move past the significant 50EMA level of ₹777, the trend may get stronger for a further upward movement in the coming days.
The RSI indicator also has shown a prominent trend reversal to signal a buy and has further immense upside potential.
The stock has witnessed an erosion in recent times and has taken support near ₹1,830. After a consolidation phase, it indicated a pullback to improve the bias.
"We anticipate the stock to again regain strength and carry on the momentum upward to witness new targets. With the RSI indicator also well placed and gradually picking up to gain strength and with immense upside potential visible, the chart looks attractive," said the analyst.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.