Domestic market benchmarks seem to have lost steam after hitting their all-time highs. Sensex and Nifty, both are down more than a percent in December as investors seek more clarity on the trajectory of rate hikes before betting on riskier equities.
The new year will begin with persisting concerns over rate hikes, inflation and geopolitical tensions. While the short-term outlook of the market remains hazy, there are stock opportunities which can give healthy returns.
Based on the recommendations of several analysts, here are 10 stocks that one can buy for the short term.
Analyst: Sumeet Bagadia, Executive Director, Choice Broking
This stock is constructing a higher high-higher low formation on the daily chart after a decent correction.
Additionally, the soccer pattern can be seen simultaneously, indicating that the stock is getting ready for a respectable uptrend.
The level of ₹530 would be a minor obstacle; once it is sustained, the stock would be better placed for moving upside.
The stock is now supported by the 21 and 50 days DMA (daily moving average).
"We anticipate volume participants will also support price action once in the coming days. Based on price action, one can initiate a long position at the current market price or near ₹518-520 zone for the target of ₹548-552," said the analyst.
VIP Industries has been in an upward trend for almost a year and a half, indicating that it has established its major trend with minor corrections along the way.
The stock is trading above the 5-day, 20-day, 50-day, 100-day, and 200-day exponential moving averages (EMAs), indicating steady momentum.
On December 9, the stock saw a volume breakout as well as a price breakout at trend line support, indicating the commencement of an uptrend.
The ADX is at 23, indicating that this move is strong. The stock is gathering momentum, as evidenced by a bullish RSI crossing.
Glenmark Pharmaceuticals has witnessed tight consolidation over the previous two weeks. As the 200 and 20-day EMAs are positioned, the levels between ₹420 and ₹425 can act as strong support.
The stock is presently forming a rounding bottom pattern on the daily charts. It is also trading in a rising channel, which allows further movement.
The RSI indicator is comfortably set at ₹60 level, which on charts indicates positive momentum.
"One can initiate a long position at the current market price and can be accumulated near ₹430-432 levels for a medium-term target price of ₹465-470. Our analysis will be deemed invalid if the price closes below ₹420," said the analyst.
Analyst: Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
After registering its top at ₹501 in May 2021, this counter has corrected almost 48 percent. For the last eight months, the stock has been changing its price structure by not making further lows and maintaining the levels of ₹260.
In December, this counter has been maintaining its price above the 200-day EMA OHLC (open-high-low-close) band which is an indication of an early reversal.
On the indicator front, daily MACD displays bullish divergence on the histogram and its respective lines. Daily DMIs are positive and advancing its structure further adding strength to the counter
"One can add or buy the stock at current levels in a small tranche and add another between ₹290-295 with an upside target of ₹355 and a stop loss of ₹275 on a closing basis," said the analyst.
Glenmark Pharma observed a steep fall of 49 percent between July 2021 and June 2022. Since then, the stock has been making higher highs and higher lows structure, confirming its uptrend.
For the last two months, this counter has been maintaining its price above 200 DEMA OHLC BAND, indicating more strength coming in.
On the indicator front, the weekly RSI has taken support near the 50 level and rebounded from there along with a weekly MACD approaching the zero line denoting further upside in the stock.
For nearly the last four months, this counter has been making lower highs and lower lows structure. Recently, it started changing its structure by making higher highs and higher lows, and also it broke its trendline
At the current juncture, it has sustained above 200-day EMA (exponential moving average) high low band. What is more interesting is that buying volume is picking up from lower levels.
We witnessed some selling pressure in the previous trading session with almost negligible volume.
On the indicator front, daily DMI (directional movement index) has given a bullish cross along with daily MACD (moving average convergence divergence) displays flip flop structure above the zero line hinting upside in the counter.
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
This stock witnessed a decent correction from ₹1,095 and bottomed out near ₹885 to take support and indicate a healthy pullback.
A bullish candle formation moving past the significant 200DMA level of ₹934 has further strengthened the bias.
The RSI indicator also indicates a trend reversal from the oversold zone.
This stock, after the short correction, took support near ₹1,250 and is indicating a pullback with improving bias and moved past the significant 50EMA level of ₹1,268.
The RSI also is well placed, regaining strength and is on the rise with immense upside potential visible.
The stock has been in a strong uptrend and after a short consolidation, has again regained strength with a positive bullish candle.
It is coming out of the small descending channel pattern on the daily chart, indicating further strength to carry on the momentum still further.
The RSI also, after a strong run, has witnessed a short correction again. It is well placed to regain the upward move and has immense potential on the upside.
"The chart remains attractive and with an overall bias positive, we suggest buying and accumulating the stock for an upside target of ₹360, keeping the stop loss of ₹305," said the analyst.
Analyst: Pravesh Gour, Senior Technical Analyst, Swastika Investmart
On the weekly chart, this counter has given a breakout of a long downtrend line with huge volume. This possibly indicates the start of an uptrend, which triggered a buy signal.
After that, it has seen a vertical rally since the low of ₹14 in September and has soared over 2.5 times to surpass the critical resistance of ₹26.
The stock has recently experienced a spectacular move, and thus there is the possibility of profit booking at ₹36 level. Above this, we can expect ₹40 level in the near to short term.
Last month, this counter witnessed a breakout of inverse head and shoulders on the daily chart and achieved the target of that breakout at around ₹34.
The overall structure of the stock looks lucrative, as it is trading above its all-important moving averages.
"Now, ₹35 acts as a resistance level; above this, we can expect ₹40 in the near term, while on the downside, ₹27 is a major support," 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.
