The Indian market has been on a losing streak since last week thanks to lingering concerns over inflation, rate hikes, slowing global economic growth and geopolitical tensions.
Domestic market benchmarks the Sensex and the Nifty50 have been underperforming their major global peers this year so far.
Equity benchmark the Sensex fell by almost a percent intraday on February 27 as investors' sentiment remains shattered.
While analysts are upbeat about the long-term prospects of the Indian market, they believe the market may remain volatile in the short term as long as uncertainty on the trend of inflation and rate hikes persist.
Analysts underscore a prudent investor needs to focus on a stock-specific strategy in this market to minimise losses and maximise their gains.
Based on the recommendations of several analysts, here are 12 stocks that can give decent returns in the next 3-4 weeks:
Recommendations of Nandish Shah, Senior Derivative & Technical Analyst, HDFC Securities
S Chand and Company | Last traded price (LTP:): ₹184.20 | Buying range: ₹184-180 | Target prices: ₹196 and ₹205 | Stop loss: ₹173| Upside potential: 11 percent
The stock price has broken out from the downward-sloping trendline, adjoining the highs of December 5, 2022, and January 3, 2023.
The trend of the stock is positive as it is trading above its important short-term and long-term moving averages. Momentum oscillators RSI (11) and MFI (10) are sloping upwards and placed above 50 on the weekly chart, indicating relative strength in the stock.
Indraprastha Gas | LTP: ₹438.25 | Buying range: ₹438-432 | Target price: ₹460 and ₹474 | Stop loss: ₹420 | Upside potential: 8 percent
This stock has broken out on the weekly chart from the downward-sloping trendline, adjoining the weekly highs of September 17, 2021, December 2, 2022, and December 23, 2022.
It has been forming bullish higher top higher bottom on the weekly chart. Momentum indicators and oscillators are showing strength in the stock.
TD Power Systems | LTP: ₹140.80 | Target price: ₹151 and ₹156 | Stop loss: ₹132 | Upside potential: 11 percent
This stock has broken out from the downdownward-slopingndline on the daily chart with higher volumes, adjoining the highs of the week ending January 6, 2023, and February 17, 2023.
Momentum oscillators RSI (11) and MFI (10) are placed above 60 on the daily chart, indicating strength in the stock. Plus DI is trading above the minus DI while the ADX line is placed above 25, indicating momentum in the current uptrend.
Recommendations of Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
Asian Paints | LTP: ₹2,738.70 | Target price: ₹3,160 | Stop loss: ₹2,670 | Upside potential: 15 percent
The stock has corrected well from the level of ₹3,850 and has bottomed out near the ₹2,680-2,700 zone of the long-term trendline support zone, indicating a strong base.
"With a pullback witnessed the bias is improving with immense upside potential visible from here on," the analyst pointed out.
"The RSI has also indicated strength with a trend reversal from the highly oversold zone to make the chart look attractive and with the risk-reward favourable, we recommend buying and accumulating this stock with an upside target of ₹3,160, keeping the support of ₹2,670," said the analyst.
The stock has recently corrected well and witnessed consolidation near the level of ₹95, maintaining above the significant 200-day moving average (DMA) level of ₹94, gathering strength.
The stock has, currently, come out of the consolidation range to improve the bias. A decisive move past the ₹103 level has triggered a breakout to carry on the momentum further to ₹116 level.
"With indicators improving and showing strength with immense upside potential, we recommend a buy in this stock," said the analyst.
Gujarat Narmada Valley Fertilizers & Chemicals | LTP: ₹551.25 | Target price: ₹610 | Stop loss: ₹522 | Upside potential: 11 percent
This stock has indicated a triangular pattern on the daily chart and currently, with a positive bullish candle visible, it has improved the bias with the support maintained near the ₹520-525 zone.
A further move past the significant 50EMA (exponential moving average) level of ₹558 would strengthen the trend and would trigger a further rise in the coming days.
The chart looks very attractive and with the RSI well placed, it has signalled a buy, with immense upside potential.
Recommendations of Sumeet Bagadia, Executive Director, Choice Broking
Coal India | LTP: ₹217.10 | Target price: ₹231 and ₹236 | Stop loss: ₹206 | Upside potential: 9 percent
Coal India stock quoted at ₹217 and has rallied off to sturdy support of ₹208. Its dominant multiyear rising channel is still intact since 2020 and a good up move was noticed.
Coal India has a good support zone around ₹214 to ₹210 where these levels were respected on several instances, which has been in place for a year and a half.
A good bounce of 8-15 percent is often witnessed from ₹210 levels once respected.
The stock is quoting above its 200 EMA, which is a critical support zone as well as a substantial buying opportunity if the price retests that level.
Coal India has experienced a decent consolidation from ₹226 to ₹214 on the weekly chart, indicating that short-term support is in place and that price will reverse as witnessed previously on numerous occasions.
On a daily chart, the RSI has crossed over and is currently trading at 49, indicating that the stock still has the potential to advance.
It has taken support at the lower band of Bollinger bands, signalling that the short-term support has been established, and a Bollinger band upward band will serve as a target zone.
Cholamandalam Investment and Finance Company | LTP: ₹762.80 | Target price: ₹810-820 | Upside potential: 7.5 percent
After decent consolidation, this stock is moving with a higher high- higher low formation on the daily chart.
Also, the stock has been moving in a rising channel indicating the bullishness in price action.
It is trading higher than the 50-day, 100-day and 200-day moving averages but lower than the 20-day moving averages.
The price is trading above the middle band of the Donchian channel which indicates a short-term bullish trend.
Sustaining high volume points out buying interest among short-term traders.
"Based on the above technical structure one can initiate a long position at the current market price. However, on the safer side, near ₹752-748 levels would be a better range to enter. Closing and sustaining above ₹775 will lead to ₹810-820 levels in the coming days," said the analyst.
Colgate Palmolive (India) | LTP: ₹1,464.15 | Target price: ₹1,540-1,575 | Stop loss: ₹1,420 | Upside potential: 7.5 percent
On the weekly chart, the stock has been in the consolidation phase and forming a strong base around ₹1,430-1,440 levels.
It is currently trading above 21 simple moving averages, confirming the short-term support as well.
Moreover, it is also forming an inverse head and shoulder pattern on the hourly chart.
RSI plotted on the daily timeframe currently remains at 45 levels. The Bollinger band on the daily timeframe has started to expand further.
"Based on the above technical structure one can initiate a long position at the current market price. However, on the safer side, near ₹1,450 would be a better range to enter. Closing and sustaining above ₹1,482 will lead to ₹1,540-1,575 level in the coming days," said the analyst.
Recommendations of Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
Zomato | LTP: ₹54.45 | Buying range: ₹54-55 | Target price: ₹62 | Stop loss: ₹49 | Upside: 14 percent
The free fall in the stock, which started in November 2022 and lasted till January 2023, got arrested around ₹46-48 levels. Moreover, the entire free fall accounted for a 40 percent cut in price.
Recently, this counter has formed a bullish shark structure on a daily scale along with bullish divergence seen on RSI (relative strength index) and MACD (moving average convergence divergence) histogram which is looking lucrative.
"One buy in a small tranche around ₹54-55 and another around ₹52-53. The upside is expected till ₹62, with a stop loss at ₹49 on a daily close basis," said the analyst.
Tejas Networks | LTP: ₹574.15 | Buying range: ₹570-575| Target price: ₹640| Stop loss: ₹535 | Upside potential: 11.5 percent
This stock has witnessed a massive beating after making a high of ₹773 on October 10, 2022, which resulted in a 34 percent cut in stock price.
Since last month, it looks like it has stabilised around the ₹540-550 zone. Following are some important points that are making the stock a buy candidate:
1. A double bottom is seen on a daily scale along with bullish divergence on the daily scale of RSI and MACD.
2. 55-month-old trendline is taken thus confirming its bullish stance. In addition, the daily RSI trendline is also taken out.
3. Dojis and an inverted hammer are formed on a daily scale exactly near the double bottom and have vouched for a further up move in the counter.
"One can buy in the range of ₹570-575 in a small tranche and another around ₹550-560 (if tested again)," said the analyst.
Borosil Renewables | LTP: ₹453.70 | Buying range: ₹450-460 | Target price: ₹520 | Stop loss: ₹435 | Upside potential: 15 percent
The free fall which started on July 20, 2022, resulted in a 38 percent cut in price. At the current juncture, this counter has formed a bullish butterfly pattern which is looking lucrative at the current market price.
In addition, it has also formed a bullish engulfing pattern around the potential reversal zone of ₹440-450, confirming a bullish stance in the counter.
From an indicator perspective, the daily RSI has made a bullish divergence along an impulsive structure near the oversold level of 30.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.