The only trend that the market has been following in the recent past is the trend of volatility.
Significantly away from its all-time high of 18,887.60, the Nifty is trading near 18,000. Analysts point out the 18,000 strike has a maximum Call and Put open interest built up which suggests that this level may difficult to cross, at least till the February monthly expiry.
The prevailing concerns over inflation, rate hikes, slowing economies and uninspiring quarterly earnings are expected to keep the market under pressure.
As there is no clarity on the direction of the market, analysts suggest following a stock-specific approach in this market.
Based on the recommendations of several analysts, here are 9 stocks that can give decent returns in the next 3-4 weeks. Take a look:
Views of Sumeet Bagadia, Executive Director, Choice Broking
After achieving a new record high of ₹2,297, Larsen and Toubro (L&T) experienced profit-booking towards its support levels.
On a closing basis, the stock respected the support levels and hasn't closed below its strong support levels of ₹2,110. It is currently trading above the 20, 50, and 200 Day EMA levels indicating the strength.
The stock is bouncing off the lower band of the channel and is currently moving in an upward-sloping channel.
L&T is currently trading easily over ₹2,215 levels, a minor resistance for the stock. It can now progress even further towards all-time high levels and beyond.
The strength for the stock to climb upwards is demonstrated by the RSI indicator, which is comfortably trading at 61 levels.
"With a medium-term target price of ₹2,300, we advise purchasing L&T stock at the current market price of ₹2,226, which can be accumulated close to ₹2,210 levels. If the price closes below ₹2,180, our analysis will be regarded invalid," said the analyst.
After decent consolidation, the stock has formed a double bottom pattern in the daily chart, indicating a short-term bounce from recent lows.
The stock is trading higher than 50-day, 100-day and 200-day moving averages but lower than 20-day moving averages.
The price is trading above the middle Bollinger band also positive crossover is indicated in RSI and MACD suggesting continuity in the bullish trend in the near term.
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 ₹84.5-85 levels would be a better range to enter. Closing and sustaining above ₹88 will lead towards ₹92-94 levels in the coming days. Stop loss can be kept at ₹81," said the analyst.
Coal India stock has rallied off sturdy support at ₹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 price is quoting above its 200 exponential moving average (EMA), which is a critical support zone as well as a strong buying opportunity if the price retests that level.
The stock has experienced a decent consolidation from ₹226 to ₹214 on the weekly chart, indicating that short-term support is in place and that the stock price will reverse as witnessed previously on numerous occasions.
The stock 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.
"We forecast positive momentum in Coal India in the following weeks, with objectives of ₹231 and ₹236 based on the aforementioned factors. Stop loss can be kept at ₹206," said the analyst.
Views of Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
For the last couple of months, this counter has corrected almost 18 percent and currently, it has made a nice base near ₹450-455.
Buying volume is gradually increasing from lower levels, indicating bullish momentum in the next few sessions.
From the indicator perspective, the MACD histogram and RSI bullish divergence were seen on a daily scale, confirming the bullish stance on the counter.
"One can buy in the range of ₹480-486 with a target of ₹530 and a stop loss of ₹455 on a daily close basis," said the analyst.
The relentless fall from December 2022 resulted in a 33 percent cut in price. At the current juncture, this counter has formed a bullish engulfing pattern exactly around 0.618 retracements of its previous rally which started in September 2022.
In addition, buying volume is also picking up from lower levels thus confirming the 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.
"One can buy in the range of ₹111-114 and the target would be ₹130 with a stop-loss of ₹104 on a daily close basis," said the analyst.
The free fall which started on July 20, 2022, resulted in a 38 percent cut in price.
At the current juncture, the said 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 exactly 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.
Views of Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock, after a long time of gradual erosion, has bottomed out near ₹80 and has indicated a decent pullback with tremendous volume participation to move past the significant 50EMA level of ₹90.
"The RSI has shot up from the highly oversold zone to show strength and with the chart looking attractive, we suggest buying and accumulating the stock for an upside target of ₹125-130 levels with stop loss maintained near ₹91," said the analyst.
The stock has corrected well in the recent past from the level of ₹820 and has taken support near the long-term trendline zone of ₹715, indicating a pullback with improved bias.
The chart looks very attractive and the RSI has flattened out near the oversold zone, indicating a trend reversal, signalling a buy, with immense upside potential.
The stock has witnessed a steep correction from ₹785 level to indicate signs of bottoming out at around ₹655 level, retracing almost 61.80 percent and is anticipated to give a decent pullback to improve the bias.
The RSI has flattened out near the oversold zone and is picking up, with immense upside potential.
Disclaimer: The views and recommendations given in this article are those of individual analysts and broking firms. These do not represent the views of MintGenie.
