Equity barometer Nifty has been in the green for the last four consecutive sessions, supported by positive global cues and healthy Q2 earnings so far.
Decreasing FII selling and sustained buying by DIIs keep the market sentiment up. However, the headwinds of sticky inflation, aggressive rate hikes and looming recession persist and the hopes for a sustained rally look misplaced.
"There are two factors supporting the ongoing rally in the market: One, support from the mother market US aided by some excellent quarterly results and two, FII selling getting completely overwhelmed by DII buying. DIIs bought stocks for ₹5290 crores in the cash market during the last 3 trading days against FII selling of ₹1536 crores. This complete dominance of DIIs over FIIs is triggering short covering too," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services observed.
"Good Q2 results are imparting resilience in segments like IT and financials. The festive mood is another positive.
However, high global inflation and tightening central banks pose headwinds to the rally," said Vijayakumar.
The outlook of the market is hazy but amid all uncertainty, there are opportunities too. Various analysts recommend the following 11 stocks to bet on for the short term (next three to four weeks). Take a look:
Analyst: Sumeet Bagadia, Executive Director, Choice Broking
On the daily chart, this stock has given a breakout of the consolidation phase and managed to sustain above ₹2,680, suggesting upside movement in the counter.
Additionally, it has been taking support from the lower band of 'Bollinger' and bounced, suggesting a bullish rally will continue further in the near term.
It has been trading above 89 day moving average (DMA) which shows a positive trend for the time being. A daily momentum indicator stochastic has shown a positive crossover which adds more bullishness to the price.
On a weekly chart, the stock has been trading in a symmetrical triangle formation where the stock has taken the support of its lower band of the pattern, indicating a bounce-back move in the counter.
Moreover, the stock has formed a hammer candlestick on a weekly chart with the support of an 89-weekly moving average which suggests an upside movement in the counter.
Furthermore, the stock price has pulled back from the lower Bollinger band and rising trendline, which indicates bullish sentiments in the counter.
Daily momentum indicator stochastic shows a positive crossover, adding more bullishness to the price.
The stock's price action suggests strong traction is expected above ₹545. It is trading above 50 simple moving averages (SMA), confirming the support in price action.
The stock is trading above the middle Bollinger band and a positive crossover is indicated in RSI and MACD, suggesting continuity in the bullish trend in the near term.
Sustaining high volume after consolidation points out buying interest among the short-term traders.
"One can initiate a long position. However, on the safer side, nearby ₹530 levels would be a better range to enter. Closing and sustaining above ₹545 will lead towards ₹575-580 levels in the coming days," said the analyst.
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock has maintained a rising trend overall and with a short correction witnessed recently, it has again bottomed out near ₹120-122.
It has formed a higher bottom pattern on the daily chart to indicate strength. Currently, it has moved past the significant 50EMA (exponential moving average) level of ₹128 to improve the bias and further rise is anticipated in the coming days.
Momentum indicator RSI has shown a trend reversal and is well placed to signal a buy.
The stock, after witnessing the erosion, has taken support near the trendline support of ₹615 and has picked up well to move past the significant 200DMA and 50EMA level of ₹690 to improve the bias and further upward movement is anticipated in the coming days.
The chart looks attractive with a series of higher bottom formation patterns on the daily chart. The RSI is on the rise and has strengthened the trend to signal a buy.
The stock is forming a base near ₹770 which is the downward-sloping trendline support zone. It has picked up momentum with a bullish candle pattern with an improved bias to move past the significant 200DMA level of ₹802 to anticipate a further upward rise in the coming days.
The RSI indicator also has indicated a trend reversal to justify the positive move of the stock and is well placed to rise further.
Analyst: Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
On the weekly chart, it has made double bottom along with 9-month-long trendline breaks. On the technical front, the weekly MACD has made a bullish cross, and the weekly RSI has formed an impulsive structure, adding more confirmation for upside momentum.
Since September 2021, this counter has been witnessing a free fall from ₹6,080 to ₹4,070 and has stabilized near its historical support of ₹4,100.
From the candlesticks pattern perspective, during August 2022, it displayed pair of dojis followed by a bullish engulfing pattern along with volume steadily increasing which is a hinting upside.
From the Indicator perspective, the weekly RSI (relative strength index) has made a complex structure near the oversold zone which further confirms the upside in the counter.
"One can buy in a small tranche at mentioned levels and buy another tranche at around ₹4,250 levels (if retested again). The upside target is expected till ₹4,800," said the analyst.
Rossari Biotech has witnessed a very sharp correction of 51% between October 2021 and June 2022. Since then the stock has been consolidating between ₹825-880.
It has made a solid base near ₹900 levels. On August 3, 2022, it gave a classic breakout from the said levels along with massive volume picking up which hints at the further upside.
At the current juncture, it 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 mentioned levels. The upside is seen till ₹1,050 with credible support seen at ₹850," said the analyst.
Analyst: Pravesh Gour, Senior Technical Analyst, Swastika Investmart
This counter is in the classical move, as it has witnessed a breakout of bullish flag formation on the daily chart, and on the weekly chart, it has given a breakout of symmetrical triangle formation with a strong volume.
The structure of the counter is very lucrative as it trades above its all-important moving averages.
MACD (Moving average convergence divergence) is supporting the current strength whereas the momentum indicator RSI (relative strength index) is also positively poised.
This counter is in a bullish momentum and has been forming higher highs and higher lows formation on the longer timeframe.
To continue this momentum for further upside, the previous swing high of around ₹1,514 is an immediate level; above this, we can expect ₹1,774 level in the near term.
On the downside, the previous breakout level of ₹1,400 is a critical support level while ₹1,330 is a strong demand zone. Momentum indicators are positively poised to support the current strength of the trend.
Disclaimer: The views and recommendations given in this article are those of individual analysts and broking firms. These do not represent the views of MintGenie.
