After logging a strong gain in the previous session, the market is back in the red, mirroring the fragile sentiment of the market amid uncertainty around global economic growth.
Even though the Indian market is expected to outperform many of its global peers, it cannot completely decouple from the world.
Analysts say the short-term market will remain volatile even though the long-term outlook remains positive. When uncertainty prevails, analysts advise betting on quality stocks backed by sound fundaments and positive technical indicators.
Based on the recommendation of various analysts, here are 13 stocks one can buy for the next 3-4 weeks:
Analyst: Sumeet Bagadia, Executive Director, Choice Broking
The price action of the stock suggests strong traction expected above ₹1,130 levels confirming bullishness in the stock. It is trading above 50 simple moving averages (SMA), ratifying the support in price action.
The price has traded above 'Ichimoku Cloud' and positive crossover is indicated in RSI and MACD as well which suggests continuity in the bullish trend in the near term.
The price is trading above the middle 'Bollinger band' in the weekly chart as well. The breadth indicator suggests a rise in balance volume, confirming positive volume flow in scrip.
"One can initiate a long position at the current market price. However, on the safer side near ₹1,085- ₹1,090 level would be a better range to enter. Closing and sustaining above ₹1,130 will lead to ₹1,220 levels in the coming days," said Bagadia.
On a weekly chart, the stock has been trading with the support of a middle Bollinger band which suggests a positive bias.
Additionally, the stock has formed a strong base around ₹2,700 while ₹2,800 will be a short-term resistance level, crossing above the same can show more upside rally.
A daily momentum indicator Stochastic shows positive crossover which adds more bullishness to the price.
"One can initiate a long position at the current market price. However, near ₹2,745-2,750 would be a better range to enter. Closing and sustaining above ₹2,800 will lead towards ₹2,950-2,970 levels in the coming days," said the analyst.
On a big timeframe, the stock has given a bullish breakout of a rising wedge pattern at ₹600.
Trading above all key moving averages suggests that the short to long-term trend is positive. The stock has established a strong foundation near the neckline of the head and shoulder pattern and 200 simple DMA which is placed at ₹560.
On a weekly chart, the price has been trading above the upper leg of the Bollinger band which suggests a bullish rally will continue further in the near term.
Furthermore, the stock has moved above the 'Ichimoku' cloud with a positive crossover between the conversion line and the baseline, which shows the upside movement in the counter.
A daily momentum indicator Stochastic and MACD shows positive crossover which adds more bullishness to the price.
"The stock is looking bullish on the chart. One can buy KPIT at the current market price and a fall to ₹635 is a good buying opportunity for the target price of ₹725 and ₹760 levels while on the downside, the support comes at ₹590," said the analyst.
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock, after the steep short correction, has shown signs of bottoming out with a big bullish positive candle on the daily chart. This indicates a trend reversal with an improvement in bias.
The stock has the strength to carry on the momentum still further upward in the coming days.
"The RSI also is well-placed with a reversal indicated from the oversold zone which signals a buy and with immense upside potential indicated, we expect a good decent rise," said the analyst.
The stock has witnessed a decent erosion in recent times and currently, with consolidation seen near the ₹6,200 zone, the stock has shown signs of bottoming out and with the formation of a positive candle pattern on the daily chart, the bias has turned positive with anticipation for a further upward move in the coming days.
"We anticipate a decent pullback to improve the trend as also indicated by the RSI indicator which has shown a reversal pattern and signalling for a buy. We suggest buying and accumulating the stock for an upside target of ₹6,780 keeping the stop loss of ₹6,080," said the analyst.
The stock has witnessed a decent slide recently and has shown signs of a trend reversal with improvement in the bias and a further rise is anticipated.
A higher formation pattern is visible on the daily chart with strength indicated. The RSI is well placed and improving to signal a buy, so, further upward movement is anticipated.
Analyst: Jigar S. Patel, Sr. Manager - Equity Research, Anand Rathi Share and Stock Brokers
Glenmark Pharma has observed a steep fall of 49% between July 2021 and June 2022. Since then the stock has been consolidating between ₹360-400 and it has made a solid base near ₹375 levels.
On a weekly scale, the said counter has formed an inverted bullish hammer near the support zone while the weekly RSI (relative strength index) has formed an impulsive structure which is adding more confirmation for upside in the coming days.
A free fall from November 2021 to June 2022 resulted in a 43% decline in price. On a weekly scale, the counter has formed a bullish shark with a potential reversal zone of ₹960-990 along with double bottom near the zone which is adding more confirmation for early reversal in said counter.
Weekly RSI has formed a complex structure along with the MACD bullish cross which further confirms the upside in the counter.
"One can buy in small tranches at the current levels and buy another tranche at around ₹1,010 levels (if again tested). The upside is expected till ₹1,150 and support is seen around ₹980," said the analyst.
Axis Bank has witnessed a decent correction of 13% after the massive rally started in July 2022. Since then, the stock has been consolidating between ₹710-730 and it has made a solid base near ₹710.
On a daily scale, the said counter has formed a Doji-like structure near the support zone while the daily RSI (relative strength index) has formed an impulsive structure which is adding more confirmation for upside in the coming days.
Analyst: Santosh Meena, Head of Research, Swastika Investmart
The counter had witnessed a breakout of a bullish inverse head and shoulder formation on the daily chart and it took support at the neckline breakout during the recent pullback.
It managed to close above its 20-DMA with a bullish candlestick formation. 50-DMA at ₹1,310 will act as an immediate support level.
On the upside, the previous swing high of ₹1,405/1,420 will be immediate resistance levels. Momentum indicator RSI witnessed a positive crossover after taking support at the 40 mark. MACD is also ready to cross the centerline.
The counter is in strong bullish momentum and managed to close at an all-time high. MACD and ADX are supporting the current trend whereas RSI also witnessed positive crossover after taking support at the 50 mark.
On the downside, rising 20-DMA will provide immediate support at any pullback. On the upside, ₹380 is an immediate target while ₹400 will be the next target level.
On the weekly timeframe, there is a breakout of the bullish cup and handle formation.
The counter has strong relative strength to the Nifty IT index where it is forming a bullish flag formation to resume its bullish momentum.
The previous breakout level of ₹633 is acting as a strong support level. On the upside, the previous swing high of ₹683 is an immediate hurdle; above this, a rally towards the ₹730 level is expected. MACD is trading above the centerline whereas RSI is also positively poised above the 60 mark.
Analyst: Ravi Gangan, Technical Trader, Mehta Equities
The IT stock is going upward to bridge the gaps made during the sell-off. The recovery of the stock has been significantly showing the strength to break above the ₹1,415 levels and fill the gap by moving swiftly on the upside.
Momentum oscillator like MACD is turning upside which gives affirmation of prices to go in north direction. Price recovery on the downside near ₹1,375, from where the stock started its upward journey, can be used as support and stop loss for the above-given trade setup.
This banking stock can be considered from an intra-month perspective as it typically moves in a broader range of ₹1,690-1,960.
The stock is ideal for swing trade where the lower end of the range can be considered as support and stop loss.
The target upper end of the range is ideal for medium-term views. To confirm the swing momentum Bollinger bands are witnessing price action within the upper and lower end.
On the upside, prices have reversed from the lower band and closed in the green zone indicating positive action to be continued.
Bharat Forge is on the recovery path, closing today with a green candle on daily basis. Prices can go up to the psychological mark of ₹750 with downside support found near ₹650.
The whipsawing nature of price action can be used for swing trade from a medium-term perspective.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.