Equity benchmark Nifty ended with mild gains of 0.14 percent at 17,624.05 on April 10, thus extending the gains into the sixth consecutive session.
In the last six sessions of gains, Nifty has risen 4 percent. Analysts attribute the gains in the market to the hopes of a healthy fourth-quarter numbers of India Inc., a pause in rate hikes by the RBI and positive macroeconomic indicators.
"The undertone of the market continues to remain positive on the back of expectation of a healthy Q4 earning season. Investors would keep a watch on several economic data including US, China and India inflation, UK GDP and FOMC meeting minutes," said Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services.
While the market sentiment appears broadly positive, profit booking at higher levels cannot be ruled out due to the persisting headwinds.
On the technical front, Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, underscored that the Nifty formed a small inverted hammer candlestick on April 10, which indicates indecisiveness between bulls and bears.
"Due to temporary overbought conditions, we could see some profit booking at higher levels going ahead. For Nifty, 17,525-17,550 would act as an immediate resistance area while 17,550-17,500 or the 50-day SMA (simple moving average) would act as key support zones,” said Chouhan.
Analysts recommend following a stock-specific approach in this market. Based on the recommendations of several analysts, here are 9 stocks that one can buy for the next 3-4 weeks:
Recommendations of Sumeet Bagadia, Executive Director, Choice Broking
After decent consolidation, this stock has formed a rounding bottom pattern on the daily chart, indicating strength in price action.
The stock is trading higher than the 20 and 50-day moving averages. The price has rebounded from the lower Bollinger band. Also, a positive crossover is indicated in RSI and MACD which is suggesting buying interest in the near term.
Price is sustaining above ₹1,000 which is 0.50 percent of Fibonacci retrenchment.
"Based on the above technical structure, one can initiate a long position at the current market price. However, on the safer side, near ₹1,000-1,005 levels would be a better range to enter. Closing and sustaining above ₹1,020 will lead to ₹1,060-1,070 levels in the coming days. Stop loss can be kept at ₹975," said the analyst.
In the ₹365-360 range, DLF has multiple solid supports. On the charts, little resistance is near ₹383 level.
The stock created a bullish candle on weekly charts, signalling strength. The RSI indicator is also approaching 54, indicating that the stock can rise further.
The stock has broken out above the 200-day EMA (exponential moving average) on the daily chart, which is a strong indication.
"According to the aforementioned technical analysis, we advise buying DLF at the current market price. Additionally, the stock could be accumulated near ₹375-377 levels with a target price of ₹410. If the stock closes below 368, our analysis will be invalid," said the analyst.
The stock is currently trading at a 52-week high. The stock faced multiple resistances in the range of ₹445-455 levels since September 2022.
"The stock has strongly moved on the higher side; hence, we can witness a chart breakout. This breakout is supported by good volumes which indicates strength. Any stock dip around 450 levels will be a buying opportunity. The investors holding from lower levels should keep trailing stop loss," said the analyst.
"We advise buying IGL on dips. Traders buying at the current market price should add the stock on dips to ₹450. The stock can now further move towards ₹490 levels and higher. If the stock closes below ₹440, our analysis will be invalid," added the analyst.
Recommendations of Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
At the current juncture, the stock has made a clear bullish bat pattern near ₹125-126 levels which is looking lucrative buy. Also, it is accompanied by an impulsive structure on the daily scale of RSI near oversold levels of 30, thus complementing the bullish stance in the counter in the near term.
"One can buy in small tranches at around ₹128-132 and another around ₹122-124. The upside target would be ₹150 and the stop loss would be ₹115," said the analyst," said the analyst.
On September 9, 2022, it made a top of ₹750. It has been making the lower top and lower bottom structure since then.
At the current juncture, it has a bullish butterfly pattern near ₹400-410 levels which is looking lucrative.
On the daily scale, MACD (moving average convergence divergence) looks overstretched thus hinting towards a bounce-back from a potential reversal zone of ₹410-420.
"One can buy in small tranches in the range of ₹450-452 and another around ₹440-444 with an upside target of ₹500 and a stop loss of ₹425 on a daily close basis," said the analyst.
This counter has witnessed massive buying interest in the last six consecutive sessions. Moreover, on a daily scale, it has formed a bullish bat around ₹65-67 levels.
An interesting thing to watch is the bullish regular divergence on a daily scale of the RSI exactly near the reversal zone of ₹65-66.
"One can buy in the range of ₹71-73 with an upside target of ₹86 and a stop loss would be ₹66 on a daily close basis," said the analyst.
Recommendations of Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock has witnessed a short correction from ₹9,030 levels and after a decent consolidation, has bottomed out near the ₹8,150 zone indicating a pullback.
A decisive breach above the significant 200DMA level would strengthen the trend for a further rise in the coming days.
The RSI is well-placed and has indicated a trend reversal to signal a ‘buy’.
The stock has been moving within a range with a strong support base near ₹730 level and with a pullback indicated which has improved the bias.
The RSI is gradually on the rise gaining strength from the oversold zone, currently well-placed for a further rise in the coming days.
A further move past ₹790 level would accelerate the upside movement and make way for fresh upside targets of ₹835-850 levels.
The stock has witnessed a decent correction from ₹399 level and bottomed out near the ₹330 level with a decent pullback indicated, improving the bias.
The stock has also just moved past the significant 50EMA level of ₹369 to further strengthen the trend. The RSI also has shown a decent recovery from the oversold zone to confirm a trend reversal signalling a ‘buy’.
"With the chart looking attractive, we suggest buying and accumulating the stock for an upside target of ₹440, keeping the stop loss of ₹340," 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.