The domestic equity market saw massive cuts in the early deals on April 17. Nifty fell over a percent in the morning trade with IT stocks as major drags. The Nifty IT index cracked almost 8 percent with shares of Infosys plunging almost 15 percent as the IT giant's March-quarter earnings disappointed investors.
The positive momentum of the last three weeks appears to have faded away and there is caution in the market. The near-term movement of the market will largely depend on how the quarterly earnings of the rest of the companies pan out. The Fed meeting in early May is also in focus now.
It is tough to predict the course of the market at this moment and it is always futile to time the market. The best one can do is to pick stocks that look good on fundamental and technical parameters.
Analysts say while the market will remain volatile in the short term, there are opportunities one should look at. Based on the recommendations of several analysts, here are nine stocks one can buy for the next 3-4 weeks. Take a look:
Recommendations of Sumeet Bagadia, Executive Director at Choice Broking
HDFC Life Insurance Company | Last traded price (LTP): ₹531.90 | Target price: ₹560-572 | Stop loss: ₹505
HDFC Life has been trending upwards since hitting a low of ₹458 apiece. The stock has been moving within a positive upward trending channel, taking support along the way. This indicates that the stock is showing strong bullish momentum and is likely to continue its upward trend.
The stock is currently trading above its short-term, mid-term, and long-term moving averages of 20, 50, and 100, respectively. This is a positive sign as it shows that the stock has been consistently trading above its moving averages, indicating strong buying momentum.
The Relative Strength Index (RSI) is currently at 68, indicating that the stock is in a strong bullish momentum phase. After facing resistance at ₹515, HDFC Life has given a breakout and is poised to move up towards the target range of ₹560-572.
The level of ₹560 is the 61.8 percent retracement of the swing low and is a significant resistance level that needs to be crossed for the stock to continue its upward trend.
"HDFC Life is expected to continue its upward trend and move towards the target range of ₹560-572. However, if the stock breaks below the support level of ₹505, this bullish view will be invalid, and the stock may face further downside risk," said the analyst.
Bajaj Finserv | LTP: ₹1,340.80 | Target price: ₹1,425-1,465 | Stop loss: ₹1,285
Bajaj Finserv has broken above a long-term downward-sloping trendline resistance, which has been acting as a barrier to the stock's upward movement.
Currently, the stock is trading at ₹1,340 and is above its 50 and 100 EMAs (exponential moving averages), indicating a positive trend. The RSI of the stock is trading at 57, which is a healthy level, suggesting that the stock is not overbought.
Furthermore, there was a positive RSI divergence seen when the stock was trading at ₹1,254 and the RSI was at 19. However, when the stock moved down to ₹1,215, the RSI was at 31. This could be an indication of a potential bullish trend reversal in the stock.
"Investors looking to accumulate shares of Bajaj Finserv may want to consider buying within the ₹1,340-1,315 range. The stock is expected to reach targets of ₹1,425-1,465, and views on this stock will only be negated if it falls below ₹1,285. Overall, the stock has the potential to continue its upward trend, and investors may want to keep an eye on this stock for further opportunities," said the analyst.
Eicher Motors | LTP: ₹3,209.45 | Target price: ₹3,380 | Stop loss: ₹3,100
The stock has been under a bearish trend for a while, but recent technical analysis indicates a potential bullish reversal.
On the weekly charts, the stock has formed a bullish candle with a breakout of a downward-sloping trend line, indicating a potential bullish trend. On the daily charts, the stock has formed three rising soldiers patterns, which is a strong bullish signal and indicates strength in the stock.
Moreover, the stock has surpassed all important moving averages, which were acting as resistance, further strengthening the bullish case.
"We recommend buying the stock at the current market price. Investors can also accumulate the stock near ₹3,160 with a medium-term target price of ₹3,380," said the analyst.
"However, investors must also monitor the stock's price closely as our analysis will be considered invalid if the price closes below ₹3,100. This could indicate a change in market sentiment or underlying fundamentals, and investors may need to reassess their investment strategy," the analyst said.
Recommendations of Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
Escorts Kubota | LTP: ₹1962.75 | Target price: ₹2,150 | Stop loss: ₹1,850
The stock, after the decent slide, has consolidated and bottomed out near the ₹1,825 level (50 percent retracement of the rise from ₹1,300 level), currently indicating a pullback.
The RSI has slowly and gradually picked up from the oversold zone and is well-placed, indicating strength.
"With the chart looking attractive with much upside potential visible, we recommend a ‘buy’ in this stock for an upside target of ₹2,150, keeping a support level of ₹1,850," said Parekh.
Apollo Hospitals | LTP: ₹4,396.65 | Target price: ₹4,880 | Stop loss: ₹4,180
The stock has taken support near the long-term trendline zone of ₹4,180 and indicated a decent pullback with improvement in bias.
It is moving past the confluence of 50EMA and 200DMA, hinting at a further upward move in the coming days.
The RSI has indicated a trend reversal and signalled a ‘buy’ as well and a further move past ₹4,500 level would accelerate the upside movement and make way for fresh upside targets of ₹4,800-4,880 levels.
Bajaj Consumer Care | LTP: ₹157.35 | Target price: ₹172 | Stop loss: ₹150
The stock, after a decent gradual slide, consolidated well, making a decent support zone near ₹150 and has indicated a pullback with a positive bullish candle.
The RSI is very well-placed indicating a trend reversal from the oversold zone and has signalled a ‘buy’ with decent upside potential visible.
"A decisive move past the ₹160 level shall trigger a further rise strengthening the trend. We suggest buying this stock for an upside target of ₹172, keeping the stop loss of ₹150," said the analyst.
Recommendations of Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Aditya Birla Fashion and Retail | LTP: ₹226.55 | Buying range: ₹224-227 | Target price: ₹260 | Stop loss: ₹204
This stock fell 44 percent from its 52-week high of ₹359.40, which it hit on November 1, 2022, to ₹200.20, which it hit on March 31, 2023.
At the current juncture, it has taken support near ₹210 level which is also one of the historical support. On April 6, 2023, it made a bullish piercing pattern along with positive divergence on a daily scale of RSI and Know Sure Thing (KST), making it an attractive ‘buy’.
(Know Sure Thing is a momentum oscillator which interprets rate-of-change price readings)
"One can buy in small tranches around ₹224-227 and another around ₹215-220. The upside target would be ₹260 and the stop loss would be ₹204 on a daily close basis," said the analyst.
Wockhardt | LTP: ₹169.70 | Buying range: ₹166-170 | Target price: ₹205 | Stop loss: ₹149
In the last 2.5 years or so, this counter has taken a massive beating of 80 percent approximately. Recently on a daily scale, the said counter has made a bullish crab structure, thus making it a great bargain at the current market price.
“Volume is gaining strength from lower levels thus complementing our bullish stance,” the analyst said.
"One can buy in the range of ₹166-170 with an upside target at ₹205 and a stop loss at ₹149 on a daily close basis," added the analyst.
Nippon Life India Asset Management | LTP: ₹236.10 | Buying range: ₹233-237 | Target price: ₹275 | Stop loss: ₹211
After clocking the top of ₹476 on October 19, 2021, this counter has been making lower top lower bottom structures which resulted in a 58 percent cut in price.
The counter has witnessed massive buying interest in the previous two sessions. At the current juncture, it has made a bullish divergence on a daily scale of RSI and Know Sure Thing (KST) along with a trendline violation which is looking for a lucrative ‘buy’.
"One can buy in small tranches around ₹233-237 and another around ₹226-229," 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.