The benchmark Sensex fell about half a percent in intraday trade on Monday as investors remained concerned over a sustained capital outflow by foreign investors and softer quarterly earnings.
The outlook of the market is hazy due to concerns over rate hikes, a looming recession in the West and a consequent hit on the earnings of Indian corporates.
Analysts recommend following the stock-picking approach to make money in this market.
Based on the recommendations of several analysts, here are 13 stocks that can give healthy returns in the next 3-4 weeks.
Analyst: Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
For the last four months, this counter has been making higher highs and higher lows structure. Recently, it broke its previous swing high of ₹218.60 while the four-month-old trendline is maintained.
Currently, it is sustaining above its 200 DEMA (daily exponential moving average), hinting upside in the counter.
On the indicator front, the daily DMI (directional movement index) is in bullish mode and it also broke its previous swing, indicating bullishness in the counter.
Daily MACD (moving average convergence divergence) has made a bullish cross above the zero line, giving extra confirmation for an upside in the counter.
"One can buy this stock in small tranches around ₹221-224 and another around ₹216-218, with a target of around ₹250 and a stop loss of ₹210," said the analyst.
For nearly five months, this counter has been making lower highs and lower lows structure.
Recently, it started changing its structure by making higher highs and higher lows, and it also broke its 12-month-old trendline.
At the current juncture, it has sustained above 200 DEMA. Moreover, buying volume is picking up from the lower levels.
Daily DMI has given a bullish cross while the daily MACD displays a bullish cross near the zero line, hinting at an upside in the counter.
"One can buy in small tranches around ₹795-800 and another around ₹765-775, with a target at around ₹900 and a stop loss at ₹740," said the analyst.
For the last three months, this counter has been making higher highs and higher lows structure.
Recently, it broke its previous swing high of ₹76.30 while the six-month-old trendline was broken. Currently, it is sustaining above this level, hinting upside in the counter.
Moreover, a hammer candle is seen taking support near 100 DEMA which is looking lucrative.
"One can buy in small tranches around ₹76-77 and another around ₹73-74. Target is seen around ₹88 and a stop loss would be ₹69," said the analyst.
Analyst: Nandish Shah, Senior Derivative & Technical Analyst, HDFC Securities
The stock has broken out from the downward-sloping trendline on the weekly chart, adjoining the highs of the week ending December 3, 2021, and December 2, 2022.
Accumulation has been seen in the stock for the last one month where volumes are significantly higher on up days as compared to down days.
The stock price has been forming a bullish higher top-higher bottom formation on the daily chart.
The stock price has broken out on the monthly chart from the multiple top resistance of ₹930-950 levels. The primary-term trend of the stock is positive as the stock price is trading above its 100 and 200-day EMA.
Momentum oscillators RSI (11) and MFI (10) are placed above 60 on the weekly chart, indicating relative strength in the stock.
Auto ancillaries’ stocks are looking good on the short and medium-term charts. The analyst said one can buy the stock in the range of ₹977-950.
The stock price has broken out from the downward-sloping trendline on the weekly chart, adjoining the highs of the week ending 22nd April and 12th August 2022.
Momentum oscillators RSI (11) and MFI (10) are placed above 60 on the daily and weekly chart, indicating relative strength in the stock. The analyst said one can buy the stock in the range of ₹218.15-212.
Analyst: Sumeet Bagadia, Executive Director, Choice Broking
Jindal Steel has been on an extremely strong increase over the last six months. Moving averages, particularly the 21, 50, 100, and 200-day EMAs, have been breached.
This indicates that the stock is getting traction. Jindal Steel is trading in a favourable rising channel and is poised to set a new weekly high.
The RSI indicator is at a comfortable level of 60, indicating that the stock has excellent momentum and the ability to rise higher.
The stock has climbed above the Bollinger band's mean and has held the ₹585 support level.
"We anticipate that it will advance much further and reach the upper band, which will act as resistance. So, based on the technical structure described above, we recommend a buy at ₹610, with ₹600 serving as an averaging opportunity for an aim of ₹645 to ₹655 and a stop loss of ₹580," said the analyst.
After the decent correction, the stock has been sustaining the strong support zone of ₹1,620-1,630. This range is also supported by 38.2 percent of Fibonacci retracement.
The ₹1,675 level is designated as the breakaway zone for upside movement. The stock has been trending and trading above 200 DMA but lower than 50 DMA.
RSI and MACD have been rebounding from lower levels over the last couple of days. ADX remains at 14 and recovering from lower levels as well, which indicates strength in price action.
Moreover, the cement sector performed better last week.
Maruti has retested the crucial support level of ₹8,100 after it corrected from its record high of ₹9,769. On charts, a reversal from the support of ₹8,100 is visible.
At ₹8,600 level, which is also a 50-day EMA, there is immediate resistance for the stock. The stock may continue to advance once it passes the stated barrier, hitting levels between ₹8,850 and ₹9,000.
The stock can rise higher since the RSI indicator, which is at a level of 48, is in a supportive position.
"We suggest buying Maruti at the current market price with a medium-term target price of ₹8,850. Additionally, it can be collected to about ₹8,400 levels. Our analysis will be deemed invalid if the price closes below ₹8,250," said the analyst.
Analyst: Pravesh Gour, Senior Technical Analyst, Swastika Investmart
On the weekly chart, it has given a breakout of trendline resistance with strong volume, while on the daily chart, it has broken out of a triangle pattern formation.
The overall structure is very bullish; higher highs and higher lows characterise this price pattern.
It trades above its all-important moving averages, and momentum indicators are also positively poised to support the current strength.
On the higher side, ₹50 is acting as an immediate resistance.
On the weekly chart, this counter has witnessed a long consolidation and the trendline breakout with strong volume while on the daily chart, it has given a V-shaped recovery from the last breakout level of ₹140.
The overall structure of the counter is also very impressive, as it is trading above all its important moving averages.
The momentum indicator RSI (relative strength index) is positively poised, whereas MACD (moving average convergence and divergence) is witnessing a centerline crossover on the upside.
"On the higher side, ₹220 is acting as an important psychological level; above this, we can expect a level of ₹240+ in the near-short term, while on the lower side, ₹170 will act as a major support during any correction," said the analyst.
On the daily chart, the counter has formed a V-shaped recovery, as well as higher highs and higher lows. It is in a classical upward move, and the structure of the counter is also very lucrative. All the important moving averages are supporting the trend.
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
After a steep correction from ₹138, the stock has bottomed out near ₹82 and has shown a pullback rally of almost 47 percent with the RSI showing positive divergence from the oversold zone.
It is currently on the verge of breaking out from its long-term trend line resistance level of ₹120 and making a bullish pennant pattern in its daily time frame.
"If the stock decides to break out from ₹120, we can expect its next target to be its previous peak of 138 levels," said the analyst.
The stock, after the decent correction, has bottomed out near the previous low of ₹1,630 to form a double bottom formation pattern on the daily chart.
With a small pullback, it has shown signs of improving the bias, hinting at further rise with a trend reversal. The RSI also has indicated a reversal from the highly oversold zone, signalling an upward move in the coming days.
"With the risk-reward favourable and chart looking attractive, we suggest buying and accumulating the stock for an upside target of ₹1,830, keeping the stop loss of ₹1,600," said the analyst.
The stock, after the strong rally, has witnessed a short correction once again, taking support near the upper zone of the channel pattern on the daily chart near ₹119.
The analyst anticipates the stock to rise further with the RSI also regaining strength.
“A decisive breach above ₹126 would further strengthen the trend and trigger a breakout for a fresh upward move.”
Analyst: Ravi Gangan, Technical Trader, Mehta Equities
This life insurance stock is trading in a rectangular pattern which means it is moving within a prolonged range of ₹525- 600 levels.
Currently, prices are hovering near the upper end of the rectangular channel indicating that the stock may break above it as prices have given close above ₹600 on a closing basis.
Continuing with the momentum, we could see action towards ₹635 as long as the near-term support of ₹585 remains intact.
Tata Steel is swiftly moving in an upward-slopping channel which shows strength in an upward direction.
Currently, prices have enough head to breach the upper trendline of the channel. Bollinger bands have opened on the upside with the middle band acting as an important support to the prices.
The stock could see movement towards its 52-week high of ₹138 as long as ₹115 remains intact.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.