Nifty has been in the red since September 21 amid concerns over a prolonged period of rate hikes and a consequent global recession.
Analysts are expecting the market to remain volatile, reacting to global cues and macroeconomic numbers. Amid the uncertainty, analysts are advising buying stocks on dips. However, they warn that a blind bet will do more harm than any benefit.
Analysts advise these 11 stocks to buy for the next 3-4 weeks as they look good on technical charts.
Analysts: Jigar S. Patel, Sr. Manager - Equity Research, Anand Rathi Share and Stock Brokers
For the last couple of months, it has been making higher highs and higher lows which confirms an uptrend. On a weekly scale, RSI (relative strength index) is above 70 and weekly stochastics are overbought which further confirms the upside in the counter.
"One can buy in small tranches at current levels and buy another tranche at around ₹650-655 levels (if again tested). The upside is expected till ₹740 and support is seen around ₹620," said the analyst.
Rossari Biotech witnessed a sharp correction of 51% between October 2021 and June 2022. Since then, the stock has been consolidating between ₹825-880 and has made a solid base near ₹900.
On August 3, 2022, it gave a classic breakout from the said levels along with massive volume picking up which hints at a further upside.
At the current juncture, the said counter has taken support near its top of the previous range breakout. "One can hold (if already bought) and add (if considering fresh buy) at the current market price. The upside is seen till ₹1,050 with credible support seen at ₹885," said the analyst.
On the daily chart, NMDC has been making higher highs and higher lows over the last couple of months. Also, volume is picking up on a daily basis which is complementing its up move.
Weekly RSI (relative strength index) is above 50 and weekly stochastics is overbought which further confirms the upside in the counter.
"One can buy in small tranches at current levels and buy another tranche at around ₹121-122 levels (if again tested). The upside is expected till ₹145 and support is seen around ₹117," said the analyst.
Analyst: Santosh Meena, Head of Research, Swastika Investmart
The counter is outperforming the Nifty pharma index and there is a breakout of a bullish cup and handle formation on the daily chart.
It is trading above its all-important moving averages where a 20-DMA (daily moving average) of ₹1,045 is an immediate support level. On the upside, ₹1,100 is an immediate hurdle; above this, we can expect a rally towards the ₹1,160 level.
Momentum indicators RSI is building a base at the 50 mark before gaining upside momentum while MACD is trading above the centerline.
The counter has strong relative strength to the Nifty IT index. It is in strong bullish momentum and managed to close above the key hurdle of ₹633.
It has broken out upsloping channel formation with a positive bias in the momentum indicators. On an immediate basis, ₹633 and ₹615 will be immediate support levels at any pullback while rising 20-DMA will be a major support level.
On the upside, ₹750 looks like an imminent target. RSI, MACD, and ADX are supporting the current strength of the trend.
This counter is in a classical uptrend and it is resuming its momentum after breaking out of bullish flag formation. On the downside, the previous breakout of ₹220 has become a critical support level.
It is respecting its 20-DMA beautifully with positive bias in all momentum indicators. On the upside, ₹250 is an immediate hurdle while ₹275 is the next target level.
Analyst: Ravi Gangan, Technical Trader, Mehta Equities
Cipla has recently touched its new 52-week high near ₹1,101 given the market volatility. "Adding more on dips towards ₹1,050 will be ideal for sustaining the rise above the psychological mark of ₹1,100 levels.
The stock is sustaining at its breakout levels, a break above ₹1,100 on a closing basis may take prices towards ₹1,180 or higher levels provided ₹1,015 remains intact as support and stop loss level," said the analyst.
On the weekly chart, this auto stock has been making higher highs and higher lows for the last three consecutive days. This price action is showing strength in the stock to move up and higher.
"With market volatility, Maruti is sustaining near higher levels with RSI being at 66 giving the space to move upside towards ₹9,930 levels keeping ₹9,050 levels intact on the downside as stop loss," said the analyst.
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
This stock has indicated a triangular pattern on the daily chart and a decisive break above the 90 levels of the significant 200DMA level would further improve the strength for further rise.
"With the RSI also getting stronger, we anticipate the stock to perform well in the coming days. We suggest buying this stock for an upside target of ₹96 keeping the stop loss at the ₹85 levels," said the analyst.
The stock has picked up momentum in the last three-four sessions moving past the significant 50EMA level of ₹890 indicating strength.
With a positive candle pattern on the daily chart, it has signified potential strength and is anticipated to carry on with the rise still further with improving bias. The RSI is on the rise getting better and better and has shown a trend reversal to signal a buy.
The stock has been in consolidation with support maintained at ₹3,550 and currently indicating a positive candle with improved bias just above to move past the significant 50EMA level of ₹3,675 and a further upward rise is anticipated.
The RSI also is well placed and gradually on the improvement with upside potential indicated.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.