The Indian market benchmarks the Sensex and the Nifty look set to end the year with low single-digit gains. Both the Sensex and the Nifty are 3 percent up as of December 23 close.
The market is expected to remain volatile in the first half of the following year owing to concerns over rate hikes, looming recession and flow of foreign funds.
Quarterly earnings, geopolitical tensions and Covid-related news will also influence the mood of the market. Investors will also observe the valuation of the market. Amid all this, stock picking is the best approach in the short term.
"While growth remains strong, Indian markets are trading at valuations which are above long-term averages on an absolute basis and valuations relative to emerging markets are stretched. With this backdrop, we believe that
bottom-up stock picking would be the way forward in 2023," said Shibani Sircar Kurian, Senior EVP and Head- Equity Research at Kotak Mutual Fund.
Based on the recommendations of several analysts, here are 9 stocks that one can bet on for the short term:
Analyst: Sumeet Bagadia, Executive Director of Choice Broking
Following the formation of a stable base on the weekly chart, the stock has been steadily going higher with good volume.
Additionally, it is on the edge of the falling trendline, indicating that the stock is getting ready for a respectable uptrend.
Although ₹3,570 would be a minor obstacle, once it is sustained it would be better placed for moving on the upside.
The stock is now supported by the 21 and 50 DMA.
"We anticipate volume participants will also support price action once in the coming days. Based on the stock's price action, one can initiate a long position at the current market price or add near ₹3,470-3,480 range for the target of ₹3,720-3,760," said the analyst.
For the last six days, the stock has been consolidating in a tight range of ₹2,450-2,520. The stock has strong support at ₹2,455 which is also a 200-day EMA.
If the stock maintains a higher level than ₹2,520, it may advance upward and approach the 20 and 50-day EMA at ₹2,550 and ₹2,590, respectively.
On the daily chart, Titan is currently trading in a downward-slopping channel and has a breakout level of ₹2,520.
The RSI indicator is comfortably trading at 37 level which indicates that the stock has the potential to move upwards.
The MFI indicator is now trading at 20, which suggests that the stock may trend higher from the current market price.
Kotak Mahindra Bank stock is near the support of its trendline. This stock saw a good retracement over the last two weeks, bringing it near trendline support.
Kotak Bank has a strong support area near the 100-day EMA on the weekly chart. On the weekly chart, Kotak Bank is advancing along an upward channel while encountering support and resistance.
For the past six months, Kotak Bank has respected and followed this channel, and it has now reached the channel base, which is between ₹1,800 and ₹1,820 levels.
According to the RSI, the price is currently trading at 33, which is seen as an oversold level and can trigger a short- to medium-term move.
Analyst: Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
On November 21, 2022, this counter made a high of ₹295 and since then it started free fall to ₹259, resulting in a 12 percent cut in price.
At the current juncture, Biocon has made a bullish bat pattern near its historical support of ₹260 which is also one of the double bottoms formed in recent times with the daily RSI bullish divergence.
The volume has picked up from lower levels which is a sign of early reversal in the counter.
LTIMindtree has observed a free fall after registering the top of ₹5,360 on November 15, 2022, resulting in a 21 percent drop in price.
At the current juncture, this counter has stabilized near ₹4,250-4,300.
On a daily scale, it has made a bullish AB=CD pattern near historical support of ₹4,250-4,350 along with a bullish hammer confirming an early reversal in the counter.
Even volume from lower levels is rising further complementing the bullish reversal in the counter.
Glenmark Pharma has 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, thus confirming its uptrend.
For the last two months, the said counter has maintained its price above 200 DEMA (days exponential moving average) HL band (high and low) which is an indication of more strength coming in.
On the indicator front, the weekly RSI (relative strength index) has taken support near the 50 level and rebounded from there along with the weekly MACD (moving average convergence divergence) approaching the zero-line denoting further upside in Glenmark.
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock after the decent correction from ₹381, has consolidated near ₹320-325 levels bottoming out near the significant 200DMA level of ₹320 and showing signs of improvement which can carry the stock price further upward.
Some stability is witnessed and with the RSI flattening out near the oversold zone and indicating a trend reversal, we anticipate a further rise and a move past the ₹340 level would further strengthen the trend for extended gains.
"With the overall chart pattern looking good with a favourable risk-reward ratio, we recommend a positional buy in this stock for an upside target of ₹380 keeping a stop loss of ₹318," said the analyst.
The stock, after taking support near the trendline zone of ₹880, has gradually picked up to move past the 200DMA level of ₹980.
Also, it has maintained above the significant 50EMA level of ₹950 for quite some time, indicating stability.
The RSI indicator is well placed and is on the rise, with upside potential visible and positive bias maintained.
The stock has been in a strong uptrend and recently with a short correction and consolidation witnessed near the ₹400-415 zone, maintaining above the significant 50EMA and 200DMA levels have confirmed the support zone and with a bullish candle pattern on the daily chart recently has shown signs of improvement with bias getting positive to anticipate for a further rise in the coming days.
The RSI also is well placed and on the rise with strength indicated and has immense upside potential visible.
"With the chart remaining attractive and with the overall bias positive, we suggest buying and accumulating the stock for an upside target of ₹465 keeping the stop loss of ₹405," 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.