While the market sentiment has been fragile since the last year due to concerns over inflation, rate hikes, economic slowdown and geopolitical tensions, issues like the Adani-Hindenburg episode and the Silicon Valley Bank collapse have added more negativity to the overall market picture.
Domestic equity benchmarks the Sensex and the Nifty are down 2.8 percent and 3.82 percent year-to-date.
However, analysts believe the Silicon Valley Bank collapse crisis has no impact on the Indian banking sector, so investors with a higher risk appetite should use the weakness in the market to buy high-quality bank stocks.
Even though the short-term outlook for the market does not look favourable for investors, analysts say investors can pick stocks that look strong on technical charts for gains in the short term.
Several analysts recommended these 10 stocks to bet on for the short term. Take a look:
Recommendations of Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
Cochin Shipyard | Last traded price (LTP): ₹467.75 | Target price: ₹540 | Stop loss: ₹450 | Upside potential: 15%
The stock has witnessed a decent correction from ₹687 and has consolidated and bottomed out near the significant 200DMA (daily moving average) level of ₹450.
It witnessed a pullback to improve the bias with decent volume participation. The RSI is well placed and has indicated a trend reversal to signal a ‘buy’, indicating much upside potential from here on.
The stock has witnessed a decent correction and consolidated near the ₹100-105 zone for quite some time maintaining strong support near ₹99.
It is currently indicating some pullback to improve the bias, moving above the important 50EMA level.
The RSI has been gradually on the rise indicating strength and one can expect further rise in the coming days.
Dishman Carbogen Amcis | LTP: ₹133.60 | Target price: ₹155 | Stop loss: ₹118 | Upside potential: 16%
The stock after the decent pick-up witnessed in the last month from the level of ₹80 has witnessed consolidation near the ₹116-120 zone.
It has recently indicated a breakout from the range for a fresh upward move with improving bias and trend.
With decent volume participation and RSI getting stronger, the chart looks attractive for a further rise in the coming days with much upside potential visible in the stock.
Recommendations of Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
Great Eastern Shipping Co | LTP: ₹606.45 | Target price: ₹670 | Stop loss: ₹570 | Upside potential: 10.5%
On December 21, 2022, it registered a top of ₹749 and since then, it has been making the lower top and lower bottom structures which resulted in a 29 percent cut in price.
In February 2023, it made a nice base near ₹560-580 levels.
On a daily scale, a bullish engulfing candlestick pattern was seen near mentioned support zone of ₹580 level, thus confirming a bullish stance for the coming sessions.
“On the indicator front, the daily RSI (relative strength index) has displayed a bullish regular divergence along with MACD (moving average convergence divergence) bullish crossover further confirming our bullish view on the counter,” said the analyst
"One can buy in a small tranche in the range of ₹600-610 and another around ₹580-590 for an upside target of ₹670 and a stop loss of ₹570 on a daily close basis," added the analyst.
On September 15, 2022, the stock registered a top of ₹1,088 and since then, it has been making the lower top and lower bottom structures which resulted in a 27 percent cut in price.
Between December 2022 and January 2023, it made a nice base near ₹840-850 levels. Recently it broke its six-month-old trendline and closed above it also, confirming a bullish stance for coming sessions.
“On the indicators front, the daily RSI has rebounded from 50 along with a MACD bullish crossover above the zero line further confirming our bullish view on the counter,” said the analyst.
"One can buy in a small tranche in the range of ₹875-885 and another around ₹855-865 for an upside target of ₹970 and a stop loss of ₹830 on a daily close basis," added the analyst.
The free fall which started on July 20, 2022, resulted in a 38 percent cut in price. At the current juncture, this 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.
Daily RSI has made a bullish divergence along the impulsive structure near the oversold level of 30.
"One can buy in the range of ₹465-475 and a target would be ₹530 with a stop loss of ₹445 on a daily close basis," said the analyst.
Recommendations of Nagaraj Shetti, Technical & Derivative Analyst, HDFC Securities
Oracle Financial Services Software (OFSS) | LTP: ₹3,240.80 | Target price: ₹3,480 | Stop loss: ₹3,025 | Upside potential: 7%
The weekly timeframe chart of Oracle Financial Services Software stock indicates a sustainable upside bounce in the last few weeks.
"We observe the formation broader triangle pattern (converging up and down trend lines), which is unfolding over the last few months. The stock price is now in an attempt at an upside breakout of the triangle at ₹3,230-3,250 levels. Hence, a sustainable move above this hurdle is expected to bring strong upside momentum for the stock price ahead," said the analyst.
The negative chart pattern like lower tops and bottoms (from November 2021 to October 2022) seems to have been completed as per the weekly chart and the stock price has started to move up as per the positive pattern like higher tops and bottoms recently. This is a positive indication.
"One may look to buy OFSS at the current market price, add more on dips down to ₹3,120 and wait for the upside target of ₹3,480 in the next three-five weeks. Place a stop loss of ₹3,025," said the analyst.
Recommendations of Sumeet Bagadia, Executive Director, Choice Broking
Glenmark Pharmaceuticals | LTP: ₹428.90 | Target price: ₹460 | Stop loss: ₹415 | Upside potential: 7%
Glenmark Pharma corrected from the resistance level of ₹450, but respected its first support level of ₹415 and bounced back.
The stock is currently trading near ₹428 and since the 200 and 20-daily exponential moving averages (EMAs) are in place, the levels between ₹420 and ₹425 can act as strong support.
The stock has also formed a bullish candle, indicating that further movement is possible. The RSI indicator is comfortably set at the 54 level, indicating positive momentum on the charts.
"We recommend buying Glenmark Pharma stock at the current market price and it can be accumulated near ₹420 level based on the trend of the chart with a medium-term target price of ₹460. Our analysis will be deemed invalid if the price closes below ₹415," said the analyst.
Dabur stock has multiple strong supports near ₹520. On the charts, a smaller resistance is visible near ₹535 which is also the 20-day EMA.
Once the stock surpasses the mentioned resistance, it can move closer to the target price of ₹560 and higher.
A Bollinger band squeeze can be seen near the support levels. The stock has bounced from the lower band of the Bollinger band. Once the middle band is crossed, situated near a small resistance of ₹535, the stock will move towards the upper band, with the squeezed band broadening.
"Based on the above technical analysis, we recommend purchasing Dabur at the current market price. It can also be accumulated near ₹520 for a target price of ₹560," said the analyst.
Maruti Suzuki India | LTP: ₹8,598.05 | Target price: ₹8,800-8,850 | Stop loss: ₹5,450 | Upside potential: 3%
Since the beginning of 2023, Maruti Suzuki India stock has been moving in an upward direction.
It is currently trading near ₹8,600 and has maintained the 200 EMA in this sluggish market.
The primary uptrend is still robust according to the weekly chart of the stock, which is above both its mid- and long-term moving averages.
RSI is presently quoting at 46 and is about to show a positive crossover. As per the Bollinger band, the price will revert to its mean as its presents at the lower end of the price band.
"We advise buying Maruti stock at the present market price. The stock can also be built up near ₹8,550 for the target price of ₹8,800-8,850. Our analysis will be invalid if the stock ends below ₹5,450," 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.