The domestic market is experiencing strong bouts of volatility. Equity barometer Sensex fell over 600 points after rising over 300 points in the first half of trade on January 30.
The risk appetite of investors is low ahead of the Union Budget and US Fed meeting outcome. The Adani-Hindenburg saga has also influenced the mood of the market.
While analysts advise investors to wait till the clamour around the Adani Group, Union Budget and US Fed settles, they also highlight the opportunities in some stocks.
Based on the recommendations of several analysts, here are seven stocks that can give decent returns in the next 3-4 weeks.
Analyst: Sumeet Bagadia, Executive Director, Choice Broking
Divi's Labs stock is moving in a small uptrend, taking the trendline's support. After hitting a low of around ₹3,200 a few months ago, it quickly rose to its current price of ₹3,385.
The fact that the stock was able to close above its 20 EMA (exponential moving average) indicates that the short-term resistance has been overcome.
It is creating a symmetric triangle on the weekly chart, and a breakthrough over ₹3,400 will confirm the pattern.
Until that time, however, we think it will continue to rise after finding support at the triangle's bottom level. The RSI is 47, indicating that there is still room for advancement to higher levels.
"Based on the aforementioned criterion, a long position can be initiated at ₹3,385 where ₹3,350 can act as a buying opportunity," said the analyst.
PVR has recovered from the important support level of ₹1,590, and for the past four days, the daily charts have been forming higher highs and higher lows.
Given that the RSI indicator shows a positive divergence, hence we can view this as a stock reversal.
The stock has overcome significant resistance at ₹1,700, which was also a level of the 20-day EMA, and additional resistance at ₹1,735, which was also a level of the 50-day EMA.
The good volumes help to support the breakthrough of the indicated resistance. The stock has the potential to rise higher once it crosses the level of ₹1,765.
"With a medium-term target price of ₹1,845, we advise purchasing PVR at the current market price of ₹1,740. PVR can also be accumulated near ₹1,720 levels. If the price closes below ₹1,695, our analysis will be considered as being invalid," said the analyst.
Analyst: Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
In the recent past, Sona BLW stock has shown a strong bounce to the upside from a potential reversal zone of ₹400-420 of a bullish AB=CD pattern. The best part about this pattern is that it is a 13-month-old pattern so the reliability of this pattern is very high.
On a daily scale, RSI and MACD have displayed bullish regular divergence, confirming early reversal in this counter. In addition, there is a trend line violation on a daily scale which further confirms our bullish stance in the stock.
"One can buy in a small tranche in the range of ₹445-455 and another between ₹430-435 (if tested again) with an upside target of around ₹500 and the stop-loss would be ₹417 on a daily close basis," said the analyst.
This counter has witnessed a massive beating after making the high of ₹524 on September 26, 2022, which resulted in a 22 percent cut in stock price.
Since last month, this counter has been trying to stabilize around the ₹410-415 zone.
Following are some important points that are making Emami a 'buy' candidate:
(1) A 'Bullish Bat' is seen on a daily scale with a potential reversal zone of ₹415-425. Furthermore, bullish divergence is seen on the daily scale of RSI and MACD. In addition to bullish divergence, trendline violation is seen on RSI.
(2) Selling volume has dried up from the recent fall from ₹480 to ₹410, indicating a possible turnaround. In the previous trading session, the counter witnessed decent buying of 4.5 percent supported by good volume at lower levels.
(3) It appears that the price structure has changed since Emami broke its previous swing high of ₹438 and successfully closed near the ₹440 mark.
"One can buy the stock in the range of ₹436-442 in a small tranche and another around ₹420-425 (if tested again)," said the analyst.
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock has been moving sideways near ₹144-147 zone maintaining above the significant 200DMA level. It has currently indicated a spurt with improving bias, moving out of the rangebound zone and showing strength.
The movement may continue further to improve the trend and can retest the previous peak zone.
The RSI has shown a trend reversal with volume and the upside potential is visible.
"With the chart setup looking attractive, we anticipate further rise and suggest buying this stock for an upside target of ₹165, keeping the stop loss of ₹143," said the analyst.
The stock has witnessed a breakout above the previous resistance zone of ₹440 with huge volume participation.
The RSI also is on the rise with strength indicated and has a further upside potential to carry on the momentum.
"With the chart looking good, we recommend a buy in this stock for an upside target of ₹485, keeping a stop loss of ₹425," said the analyst.
The stock has slowly and steadily maintained its trend and has come out of the consolidation period moving past the important 50EMA level of ₹336.
The RSI has picked up well and is on the rise, suggesting strength in the stock and an upside potential for a further rise in the coming days.
"With the chart looking attractive, we suggest buying and accumulating the stock for an upside target of ₹380, keeping the stop loss near ₹327," 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.
