Equity barometer the Sensex opened almost 200 points higher at 60,007 on March 6 and rose nearly 700 points in morning trade, tracking positive global cues after Wall Street saw its best close in six weeks on the back of strong macroeconomic data.
The market is witnessing buying after the recent corrections which had sent it to the oversold zone.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that the trend reversal in Nifty, led by banking and metals, has more legs to go. When the market gets oversold, as happened in recent weeks, the bounce-back triggered by short-covering can be sharp, he said.
However, uncertainty still persists and it can't be said that the market will sustain the gains.
"This week may throw up some important triggers relating to US non-farm payroll data and takeaways from the Fed chief Powell’s views on the US economic outlook. Since the trends from the mother market US are crucial for global equity markets, investors have to watch out for these data," said Vijayakumar.
At the current juncture, a prudent investor should bet on quality stocks that look sound on fundamental and technical parameters.
Three analysts recommend these nine stocks to buy for the next three-four weeks. Have a look:
Recommendations of Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
On September 15, 2022, it registered a top of ₹1,088. Since then, it has been making the lower top and lower bottom structures which resulted in an 18 percent cut in price.
Between December 2022 and January 2023, it made a nice base near ₹840-850 level. Recently it broke its six-month-old trendline and closed above it, thus confirming a bullish stance for the coming sessions.
On the indicator front, the daily RSI has rebounded from 50 levels along MACD bullish crossover above the zero line further confirming our bullish view on the counter.
"One can buy in a small tranche in the range of ₹885-895 and another around ₹865-875 for an upside target of ₹980 and a stop loss of ₹840 on a daily close basis," said the analyst.
This stock witnessed a massive beating after making a high of ₹773 on October 10, 2022. At present, it is trading with a 25 percent cut.
Since last month, it looks like it has stabilised around the ₹540-550 zone.
A double bottom is seen on a daily scale along with bullish divergence on the daily scale of RSI and MACD which is a positive sign, making the stock buy-worthy.
The five-month-old trendline is taken, confirming its bullish stance. In addition, the daily RSI trendline is also taken out.
Dojis and inverted hammers are formed on a daily scale exactly near the double bottom, signalling a further upmove in the counter.
"One can buy in the range of ₹575-580 in a small tranche and another around ₹550-560 (if tested again. The target is expected at ₹640 and a stop loss of ₹535 is suggested on a daily closing basis," said the analyst.
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.
From an indicator perspective, the daily RSI has made a bullish divergence along an impulsive structure near the oversold level of 30.
Recommendations of Sumeet Bagadia, Executive Director, Choice Broking
The stock is trading above the 20-day exponential moving average (EMA) showing strength for the short term.
The smaller resistance is placed at ₹2,870 which is also a 50-day EMA. Once the stock sustains above the mentioned levels, it can move further towards ₹2,975 level.
“We can see the Bollinger band being squeezed on the daily chart. The price remains above the middle line of the Bollinger band after testing the lower band, indicating that the stock is strong and can move upwards breaking the higher band,” the analyst said.
Furthermore, the RSI Indicator is comfortably trading near the 42.35 level, indicating that the stock may rise.
"With a medium-term target price of ₹2,975, we advise purchasing the stock at the current market price. It can also be accumulated close to ₹2,800 level. If the price closes below ₹2,750, our analysis will be regarded as invalid," said the analyst.
Colgate-Palmolive is currently quoting at ₹1,500 after a turbulent week. It has finally managed to break out of monthly consolidation from ₹1,430 to ₹1,470 levels.
On a daily chart, the stock has managed to break out of its 20-day and 50-day EMA.
The stock has good support at ₹1,470 which was seen in June last year, from which the price has reversed.
On the weekly charts, RSI has given a positive crossover suggesting good momentum in the stock. It has given a breakout of 200 EMA at ₹1,462.
"We recommend buying the stock at the current market price of ₹1,500 and add at ₹1,475 with a target of ₹1,585 to ₹1,600 with a stop loss of ₹1,430," said the analyst.
IndusInd Bank has established a base between ₹1,100 and ₹1,075. The stock is currently trading above the 200 and 20-day EMAs.
It has demonstrated strength as evidenced by the ongoing volumes and upward movement of the stock.
The stock has developed a bullish engulfing pattern on the weekly chart, indicating its strength. The RSI indicator is also comfortably trading at 49 levels, which will support the upward movement of the stock.
The stock has a smaller resistance level of around ₹1,140, which is also a 50-day EMA, and once it overcomes that level, it may rise towards ₹1,175 levels.
"We recommend buying IndusInd Bank stock at the current market price and can be accumulated near ₹1,110 level with a medium-term target price of ₹1,175," said the analyst.
Recommendations of Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock, after a short correction, has again reached near the trendline support of ₹2,080 and is indicating a trend reversal with improvement in the bias.
It has further strengthened the trend moving past the significant 50EMA level of ₹2,142.
"We anticipate the move to continue till ₹2,240-2,250 level where it can face some resistance and further decisive breach above ₹2,250, will carry on the with the momentum till ₹2,330-2,350 levels. At the same time, a decisive breach below ₹2,080 would turn the bias weak and we can expect further slide," said the analyst.
The stock has witnessed a decent correction from ₹145 and is currently showing signs of bottoming out near ₹95.
It has given a pullback to improve the bias. With the RSI hovering near the oversold zone, it has shown a trend reversal and has signalled a buy.
The stock has made a higher bottom formation on the daily chart and is on an upward trend, currently moving past the significant 50EMA level of ₹1,680.
Overall, the charts look attractive for a further rise in the coming days. The RSI has shown a trend reversal and has signalled a buy in this stock.
"With decent volume participation witnessed, we recommend buying this stock with an upside target of ₹1,900 and a stop loss of ₹1,650," 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.
