Domestic market benchmarks the Sensex and the Nifty snapped a two-day losing run on January 23 amid positive global cues.
Hopes are getting stronger that the US Fed may slow down the pace of rate hikes. However, a negative surprise on this front may give a strong jolt to the market.
Quarterly earnings so far have also not been able to give a boost to the market sentiment even though some banking heavyweights have beat street estimates.
Analysts say uncertainty will prevail in the near term unless there is a clear signal on the trajectory of rate hikes by the US Fed.
For the short term, they suggest betting on stocks that look strong on technical charts. Two analysts have suggested the following six stocks for the next 3-4 weeks. Take a look
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock has witnessed a decent correction from the peak of ₹685 and has retraced 50 percent of the rise that began from ₹280.
The stock has made a higher bottom formation pattern on the daily chart taking support near ₹485.
Momentum indicator RSI has shown a trend reversal from the highly oversold zone, indicating a buy signal with volume participation also visibly on the rise.
"With the chart setup looking attractive, we anticipate a further rise and suggest buying this stock for an upside target of ₹565-580 levels keeping the stop loss of ₹480," said the analyst.
The stock has witnessed a decent erosion recently from the peak of ₹430, taking support near ₹305. Thereafter, with a pullback witnessed and improved bias, the stock has picked up, indicating a bullish candle pattern in the last two sessions.
It is anticipated to rise further in the coming days.
"With the RSI also on the rise and decent volume participation witnessed, we recommend buying this stock for an upside target of ₹380, keeping a stop loss of ₹325," said the analyst.
The stock has almost given a breakout from its long-term trend line resistance level of ₹98.
With a series of higher bottom formation patterns on the daily chart, the stock is moving gradually upward and a move past ₹100 can trigger a fresh upward move in the coming days.
"RSI is also indicating a new round of momentum and it can carry on the momentum still further. We suggest buying and accumulating the stock for an upside target of ₹108, keeping the stop loss near ₹95," said the analyst.
Analyst: Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
The weekly chart of Minda Corporation depicts a perfect symmetrical triangle breakout above ₹230. The said pattern has a theoretical target of over ₹300.
The price action is supported by the positive placement of the weekly RSI which indicates strength in the momentum.
"We advise traders to accumulate the stock in the range of ₹226-230 with a stop loss of ₹215 (daily closing basis) for an upside target of ₹260 on a daily close basis," said the analyst.
The rally, which started in May 2022, resulted in 47 percent appreciation. Currently, it is trading above the 12-21-50 daily exponential moving averages, which is a sign of strength in the counter.
The previous trading session gave a clean breakout from the triangle pattern. On the indicator front, the daily 14-period RSI has taken support and then it has rebounded thus indicating further up move in APL Apollo Tubes.
"One can buy around ₹1,180-1,200 with an expected target of ₹1,300 and the stop-loss would be ₹1,140 on a daily close basis," said the analyst.
A free fall, which continued from August 1, 2022, to December 23, 2022, resulted in a 39 percent correction.
In the previous trading session, Polyplex had seen excellent buying interest. What is more interesting is that in the last month, any sort of buying interest was followed by massive volume.
In addition to the above technical rationale, this counter has taken out the 6-month-old trendline. The daily 14 periods RSI has made a bullish divergence in association with the double bottom price structure.
"One can buy in the range of ₹1,550-1,580 with an upside target of ₹1,715. The stop-loss should be ₹1,460 on a daily close basis," 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.