The financial year 2022-23 (FY23) ended on a rather disappointing note as concerns over sticky inflation, rate hikes, slowing global economies, geopolitical issues and the banking crisis in the US and Europe kept investors on tenterhooks. However, as compared to global peers, the Indian market finished FY23 on a decent note.
The Nifty 50 has lost 0.60% in the last fiscal year, while the Sensex has gained moderately by 0.72%.
The BSE Midcap index declined 0.2 percent but the smallcaps suffered significantly. The BSE Smallcap index fell 4.5 percent for the year.
The short-term outlook for the market is sombre as the world continues grappling with persisting concerns over rate hikes and economic slowdowns.
Foreign portfolio investors (FPIs) have been on a selling spree in the Indian market. As per NSDL, FPIs have taken out ₹40,936 crore from the Indian financial market in FY23.
The trend is unlikely to reverse in the short term at least until the US Fed hits a pause on rate hikes.
Analysts advise investors should be highly prudent while betting on stocks in this market. Based on the recommendations of several analysts, here are seven stocks that one can bet on for the next 3-4 weeks:
Recommendations of Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
On September 9, 2022, the stock made a top of ₹751. Since then, it has been making the lower top and lower bottom structure which resulted in a massive 44 percent cut in price. 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, hinting at a bounce back from a potential reversal zone of ₹400-410.
"One can buy in small tranches in the range of ₹425-435 and another around ₹400-410 with an upside target of ₹500 and a stop loss of ₹370 on a daily close basis," said the analyst.
On January 6, 2023, it registered a top of ₹620. Since then, it has been making the lower top and lower bottom structures which resulted in a 26 percent cut in price.
In February 2023, it made a nice base near ₹460-470 levels. On the indicator front, the daily RSI (relative strength index) has displayed a bullish regular divergence along with MACD bullish crossover further confirming the bullish view on the counter.
"One can buy in a small tranche in the range of ₹495-500 and another around ₹485-490 for an upside target of ₹540 and a stop loss of ₹475 on a daily close basis," said the analyst.
Cipla | LTP: ₹900.65 | Buying range: ₹895-905 | Target price: ₹960 | Stop loss: ₹865
For the last six months, this counter has been witnessing a massive beating resulting in a 28 percent cut in price. It looks like the fall is arrested around ₹860-870 levels.
On a daily scale, Cipla has made the bullish alternate bat pattern which is one of the most powerful patterns in the Harmonic arsenal.
The potential reversal zone comes around ₹860-870, which is complemented by a pair of hammer structures, making it lucrative at the current levels.
Recommendations of Sumeet Bagadia, Executive Director, Choice Broking
Tata Motors | LTP: ₹420.60 | Target price: ₹442-450 | Stop loss: ₹406
After decent consolidation, this stock formed a strong base around ₹400 levels, taking support of the falling trendline on the daily charts.
The stock is trading higher than 20 DMA (daily moving average) but lower than 50 DMA. MACD has shown a positive crossover, indicating short-term momentum is picking up.
Also, the bullish Harami pattern indicated in the daily chart confirms the bullishness in price action. According to the Fibonacci retrenchment, 0.38 percent resembles at ₹424 levels. Once prices close above this, a decent upside rally may occur.
Bajaj Finserv | LTP: ₹1,266.35 | Target price: ₹1,330 | Stop loss: ₹1,230
The stock has formed a hammer pattern on weekly charts, indicating a bearish trend reversal.
On the daily charts, a positive divergence on the RSI indicator can be seen, with the RSI trading around 42 levels, indicating strength.
After finding support at the lower band of the Bollinger band, the stock bounced towards the middle band, and if it sustains above ₹1,295, which is also the middle band of the Bollinger band and the 20-day EMA (exponential moving average), it can move towards the target price of ₹1,330.
"We recommend buying Bajaj Finserv stock at the current market price of ₹1,266 with a medium-term target price of ₹1,330. The stock can also be bought near the ₹1,250 level. If the price falls below ₹1,230, our analysis will be deemed invalid," said the analyst.
Infosys | LTP: ₹1,427.70 | Target price: ₹1,520-1,545 | Stop loss: ₹1,380
The stock has formed a triple bottom pattern at the ₹1,375 level, indicating a potential bullish reversal.
The Relative Strength Index (RSI) was also oversold and saw a positive crossover, indicating there is more room for the stock's price to expand.
After consolidating for a week and a half in the range of ₹1,400-1,360, the stock broke out of that range today, suggesting a potential bullish momentum shift.
"Based on this analysis, we see near-term targets of ₹1,520-1,545, with a stop loss at ₹1,380 to manage downside risk. Investors who are looking for an opportunity to enter the stock market may consider the stock as a potential investment," said the analyst.
Recommendations of Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
Reliance Industries (RIL) | LTP: ₹2,331.05 | Target price: ₹2,650-2,700 | Stop loss: ₹2,180
Reliance has been a big underperformer among the Nifty50 stocks and has been hovering near the lower end near the ₹2,180 levels which was the previous major support level from where it had gained strength and given a decent appreciation.
The stock after consolidating has once again witnessed a decent pullback to improve the bias.
A strong bullish candle pattern on the daily chart signifies strength and the stock is anticipated to rise further in the coming days.
The RSI also has indicated a strong trend reversal from the oversold zone, signalling a ‘buy’ and a further decisive move above the 50 EMA level of ₹2,350 should gain momentum for a further rise to ₹2,650-2,700 levels.
Tata Motors | LTP: ₹420.60 | Target price: ₹465 | Stop loss: ₹405
The stock has witnessed a decent correction and has come near the base of the channel pattern trendline on the daily chart, taking support near ₹400-405 zone and indicating a decent pullback with an improvement in bias.
“We expect the stock to touch the initial target of ₹465 levels in the coming days moving past the important moving averages of 200DMA and 50EMA zones. The RSI indicator is also well placed, indicating a trend reversal and signalling a buy with the possibility of much upside potential from here on,” said Parekh.
Infosys | LTP: ₹1,427.70 | Target price: ₹1,600 | Stop loss: ₹1,355
The stock, after correcting significantly, has once again attained the strong support of ₹1,360, forming a triple bottom formation pattern on the daily chart.
A decent pullback and a positive bullish candle have improved the bias and a further upward move is expected in the coming days.
The chart looks very attractive and with the RSI also improving from the oversold zone, the stock has upside potential.
Disclaimer: The views and recommendations given in this article are those of the individual analysts. These do not represent the views of MintGenie.
