Domestic benchmark indices the Sensex and the Nifty fell over a percent in morning trade on March 20, tracking weak global cues.
The short-term outlook of the market remains hazy as dust over the banking crisis in the West, rate hikes and geopolitical concerns are yet to settle.
The banking crisis might push the US Fed to consider a milder hike or even take a break in the March meeting. Considering the 50 bps rate hike by the ECB, all eyes are now on the US Fed and Bank of England, which are holding their policy meetings this week.
Analysts suggest one should avoid taking aggressive bets in this market and pick quality stocks that are fundamentally sound and technically attractive.
Based on the recommendations of three analysts, here are nine stocks that can give healthy returns in the next three-four weeks.
Sumeet Bagadia, Executive Director, Choice Broking
After a decent consolidation, this stock has formed a double-bottom pattern in the daily chart, indicating a short-term bounce from recent lows.
The stock is trading higher than the 100 and 200-day moving averages but lower than the 50-day moving averages.
The price has rebounded from the lower Bollinger band, and also positive crossover is indicated in RSI and MACD suggesting buying interest in the near term.
Price is sustaining above ₹4,350 which is 23.6 percent of Fibonacci retrenchment.
"Based on the above technical structure one can initiate a long position at the current market price. However, on the safer side, nearby ₹4,255- ₹4,260 levels would be a better range to enter. Closing and sustaining above ₹4,400 will lead towards ₹4,540- ₹4,580 levels in the coming days," said the analyst.
UltraTech has broken out of its moving averages and is well above the 20-50-100 and 200 EMAs (exponential moving averages), indicating strength in this weak market.
The RSI experienced a positive crossover in the previous session and is currently quoting at 56, indicating that there is plenty of room for it to rise.
"Ultratech has seen good support at ₹7,050- ₹6,900 in recent months. UltraTech is on the verge of a breakout, with ₹7,290- ₹7,390 acting as a good supply zone. Once these levels are absorbed, UltraTech can have a significant positive impact," said the analyst.
UPL has several strong supports in the range of ₹690-695. A smaller resistance is visible on the charts near ₹725 levels, which is also the 50-day EMA.
Once the stock overcomes the mentioned resistance, it will be able to move closer to the target price of ₹775 and higher.
A Bollinger band squeeze can be seen near the support levels on weekly charts, and the stock has also bounced from the lower band of the Bollinger band.
Once the middle band, which is located at ₹740, is crossed, the stock will move towards the upper band, with the squeezed band widening.
"According to the aforementioned technical analysis, we advise buying UPL at the current market price. Additionally, the stock could be accumulated near ₹700 level with a target price of ₹775. If the stock closes below ₹690, our analysis will be invalid," said the analyst.
Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
After making the top of ₹251 on April 7, 2022, this counter has been making a lower top lower bottom structure, resulting in a 52 percent cut in price.
At the current juncture, it has made a nice base of around ₹135-145 which is looking lucrative.
From an indicator point of view, the daily RSI (relative strength index) has rebounded from 50 levels along with DMI (directional movement index) showing positive momentum, confirming the bullish view on the counter.
"Price action is comfortably above Alligator which further confirms our bullish view. One can buy in the range of ₹151- ₹152 with an upside target of ₹171 and with a stop loss of ₹141," said the analyst.
In its previous trading session, BHEL took support above the Alligator along a bullish hammer seen above 200 DEMA.
It is trading above most of the daily moving average exponential (200-100-50-26 day) thus confirming the bullish view on the counter.
From the indicator point of view, daily RSI has made an impulsive structure along MACD (moving average convergence divergence) displaying a positive crossover which further compliments the bullish view.
On December 21, 2022, it registered a top of ₹749. Since then, it has been making the lower top and lower bottom structures which resulted in a 29 percent cut in price. In February 2023, it made a nice base near ₹560-580 levels.
On a daily scale, a bullish Engulfing candlestick pattern was seen near mentioned support zone of ₹580 level, confirming a bullish stance for coming sessions.
On the indicator front, the daily RSI has displayed a bullish regular divergence along with MACD bullish crossover further confirming the bullish view on the counter.
"One can buy in a small tranche in the range of ₹593- ₹597 and another around at ₹583- ₹585 for an upside target of ₹660 and a stop loss of ₹560 on a daily closing basis," said the analyst.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock, after a decent correction from ₹3,580 level, has bottomed out and consolidated near the long-term trendline support level of ₹2,700 and has been in a rangebound zone for quite some time.
Bias is again improving as the stock is moving past the significant 50EMA level of ₹2,855. The RSI is well-placed and is on the rise indicating strength.
"With the chart looking very attractive, we recommend a buy in this stock for an upside target of ₹3,180, keeping a support level of ₹2,700," said the analyst.
The stock has made a strong support base near the ₹730-735 zone and has indicated a pullback to improve the bias to some extent.
The chart has shown prominent strength in the current scenario with the RSI indicator also regaining from the highly oversold zone, signalling a buy.
"A decisive move past ₹790 level would further strengthen the trend and we can expect some conviction established for a further upward move. We recommend buying this stock with an upside target of ₹860 and a stop loss of ₹735," said the analyst.
The stock has witnessed a decent erosion from the levels of ₹2,900. It has bottomed out near the long-term trendline support level of ₹2,250, gathering strength.
The chart has been attractive with immense upside potential visible. The RSI indicator is also well-placed and is gradually on the rise, indicating strength. It can carry on the positive move still further ahead.
"With decent volume participation and the chart looking good, we recommend buying this stock with an upside target of ₹2,600 and a stop loss of ₹2,235," 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.