At a time when the market is volatile and the road ahead is hazy, picking stocks for investment is tough for even seasoned investors.
Nifty ended 2022 with slim gains and the outlook for the new year is also not very upbeat, thanks to the persisting headwinds.
However, analysts believe there are many stocks that can give healthy returns in the short term as they are fundamentally good and technically sound.
Four analysts recommend 12 stocks for buying at this juncture for the next three-four weeks. Take a look:
Analyst: Vinay Rajani, CMT, Senior Technical & Derivative Analyst, HDFC Securities
The stock price has surpassed crucial resistance of multiple tops placed at ₹20. It has resumed its primary uptrend after running correction. Price breakout is accompanied by rising volumes.
It has been forming higher tops and higher bottoms on the daily charts and is placed above all important moving averages.
Indicators and oscillators have tuned bullish on daily and weekly charts. Infrastructure and construction stocks have started outperforming and are expected to outperform in the short-to-medium-term timeframe.
This stock has found support at its 50-day exponential moving average (EMA) and bounced back with rising volumes.
The primary trend of the stock has been bullish as it has been forming higher tops and higher bottoms on the daily and weekly charts.
The PSU banking sector has been outperforming and the same is expected to continue, as the ratio chart of Nifty PSU Bank versus Nifty has given a bullish breakout on the monthly chart.
Indicators and oscillators have been showing strength in the current uptrend.
This stock found strength on the chart on December 15, 2022, when it surpassed the resistance of 50-day EMA with a significant jump in price and volumes.
After the breakout, it started forming higher tops and higher bottom formations on the daily chart and turned bullish on medium-term charts as well.
It is on the verge of surpassing the all-time high level of ₹279, registered on August 18, 2022.
The metal sector has recently picked up momentum and the Nifty Metal index has registered a new all-time high.
Indicators and oscillators have turned bullish on daily and weekly charts.
Analyst: Ameya Ranadive, Equity Research Analyst, Choice Broking
After a week of stability following a severe plunge, Bajaj Finserv is now trading at ₹1,552. The stock has strong support around ₹1,500.
The RSI is currently at 43, up from 30 a few days ago, indicating that momentum is in place. It has also established a bullish Harami pattern on the weekly chart, signalling that a reversal would occur in the near term.
HAL has been consolidating since the last week around ₹2,565 which is also a 50-day EMA. The stock has shown a reversal from the lower levels of ₹2,410 which was strong support on the chart.
HAL has also formed a bullish engulfing pattern on lower levels which is a sign of reversal. Once the stock crosses its resistance above ₹2,565, it can move towards ₹2,680.
The RSI indicator is also comfortably trading at the 42 level which shows the strength for the stock to move upwards.
"We recommend buying HAL at the current market price. It can also be accumulated near ₹2,500 with a medium-term target price of ₹2,660. Our analysis will be invalid if the price closes below ₹2,420," said the analyst.
The price movement of the stock shows that above ₹125 level, considerable traction is possible which would reinforce the stock's bullishness.
The stock is trading above 20 and 50 DMA, indicating strength in price action. It is trading above the middle Bollinger band and a positive crossover is indicated in RSI and MACD suggesting continuity in the bullish trend in the near term.
Moreover, it is also forming a higher-high, higher-low formation on the daily chart.
"One can initiate a long position at the current market price. However, on the safer side, near ₹123-124 levels would be a better range to enter. Closing and sustaining above ₹125 will lead to ₹132-135 levels in the coming days," said the analyst.
Analyst: Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
The free fall started in July 2022 and remained till October 2022, resulting in a 47 percent decline in the stock price.
On a daily scale, the counter has formed higher highs and higher lows structures, indicating bulls are taking control.
The counter has been witnessing buying interest of late along with nice volume which is adding more confirmation for further upside.
On the indicator front, the daily DMI (directional movement index) has formed a bullish crossover which further confirms the upside in the counter.
"One can buy in small tranches at the current levels and buy another tranche at around ₹485-495 levels if tested. The upside is expected till ₹600 and support is seen around ₹465," said the analyst.
For the last six months, this counter has been consolidating in the zone of ₹350-390. Recently on a daily scale, Saregama has violated the four-month-old trendline.
Also, it has formed a bullish AB=CD pattern near ₹370 along with daily scale MACD (moving average convergence divergence) displaying bullish divergence near the zero line which is indicating an upside.
On December 28, 2022, it witnessed massive buying interest along with massive volume.
"One can buy in small tranche at the current market price and another around ₹370 if tested again. The upside is expected till ₹450 with a stop loss of ₹350," said the analyst.
Macrotech Developers (LODHA) | Buying range: ₹1,080-1,095 | Target price: ₹1,200 | Stop loss: ₹1,035
For nearly the last four months this counter has been making lower highs and lower lows. Recently, it started changing its structure by making higher highs and higher lows.
It also broke its five-month-old trendline. At the current juncture, it has sustained above 200 DEMA high low band.
What is more interesting is that buying volume is picking up from lower levels. We witnessed nice buying interest in the last few sessions.
On the indicator front, daily DMI has given a bullish cross along with daily MACD displays reverse divergence above the zero line hinting upside in the counter.
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock has attained the lower trendline support of the descending channel pattern on the daily chart near ₹850 level and witnessed a pullback with improved bias and a positive candle pattern, indicating a trend reversal.
The RSI indicator also has shown a trend reversal from the oversold zone, suggesting a further upward move.
"With upside potential visible, the risk-reward ratio favourable and the chart looking good, we recommend a positional buy in this stock for an upside target of ₹965, keeping a stop loss of ₹846," said the analyst.
After the short correction, this stock has indicated a reversal, taking support near the significant 200DMA level of ₹37.50.
It has been witnessing some improvement in the bias as the stock has gradually picked up momentum with positive candle patterns on the daily chart.
With the RSI also showing a trend reversal from the near oversold zone, it has indicated signs of improvement with immense upside potential.
With a decisive move past the significant 50EMA level of ₹39.70, it may further move upward.
The stock is in a strong upward trend. After the short correction, it took support near the significant 50EMA level of ₹165 and indicated a trend reversal with a decent pullback improving the overall bias on the daily chart.
The RSI has shown a trend reversal with potential visible on the upside, indicating strength.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.
