Shares to buy: The Indian stock market posted solid gains last week, fueled by the US Fed's 50-basis-point rate cut and indications of further cuts on the horizon. Additionally, recession fears eased following lower-than-expected US jobless claims, adding to the market's positive momentum.
The benchmark Nifty 50 continued its upward momentum for the second straight week, gaining nearly 2 per cent. On a monthly basis, the index has climbed just over 2 per cent, maintaining its positive trend since June. So far this year, it has risen by approximately 19 per cent.
Experts remain upbeat about the domestic market but caution one to be prudent in stock selection and bet on only quality stocks. They recommend buying these 11 stocks, expecting them to rise 7-27 per cent in the next three to four weeks. Take a look:
The stock has indicated a strong uptrend in the last three months, scaling the peak of ₹1,936.
After that, with a slight dip, it has taken support near ₹1,808 level to indicate another upward move with a decent pullback improving the bias.
“The Relative Strength Index (RSI) has cooled off significantly and is well-positioned, indicating a positive trend reversal to signal a buy. With immense upside potential visible, it can continue the positive move further ahead,” said Koothupalakkal.
The stock has been declining for the last 2-3 months and maintaining support near ₹3,640; it has indicated a decent pullback to move past the 50EMA (exponential moving average) and 100-period MA (moving average) zone to improve the bias significantly.
With massive volume participation, a strong candle formation on the daily chart has strengthened the trend further by breaching above the long-term trendline zone at ₹4,000.
The RSI is rising and has indicated strength to continue the upward move.
The stock has been in consolidation for some time and has recently indicated a trendline breakout above the ₹1,920 to improve the bias.
After a short period of flat rangebound movement, a strong positive candle formation appeared on the daily chart to strengthen the trend further.
The RSI has indicated immense strength and is ready for another upward move in the coming days.
The stock has recently shown a possible breakout from a falling trendline on the daily chart, with a significant increase in trading volume indicating a potential breakout.
"If the price manages to close above the ₹255 level, it may potentially reach short-term targets of ₹300 and ₹320. Immediate support is located at ₹225, where the 200-day EMA exists, providing a potential buying opportunity on dips," said Bhojane.
The stock has recently shown a possible breakout from a falling trendline on the daily chart, with a significant increase in trading volume indicating a potential breakout.
"If the price manages to close above the ₹3,820 level, it may potentially reach short-term targets of ₹4,100 and ₹4,200. Immediate support levels are located at ₹3,700, which can be seen as an opportunity to buy on dips," said Bhojane.
The stock has recently shown a possible breakout from its range on the daily chart, with a significant increase in trading volume, indicating a potential breakout.
"If the price manages to close above the ₹780 level, it may reach short-term targets of ₹850 and ₹870. Immediate support levels are located at ₹740, which can be considered an opportunity to buy on dips," said Bhojane.
BPCL forms a double bottom pattern on the daily chart, finding support at the 100 EMA, indicating a potential reversal.
The recent decline lacked volume, reflecting weak selling pressure.
Additionally, the stock rebounds from the oversold category on the RSI, further strengthening the likelihood of a bullish reversal and upward move from current levels.
PNB has corrected around 25 per cent from its 52-week high and is now trading near its previous swing low on the weekly chart, forming a double-bottom pattern.
The recent downtrend lacked volume support, indicating weak selling pressure.
RSI divergence is on the daily chart, signalling seller exhaustion. This setup suggests a strong potential for a bullish reversal and significant upside move.
RVNL is trading within a bullish channel, currently near its lower range value, which has consistently provided support and is also close to the 100 EMA. The recent price decline lacked significant volume, indicating weakening selling pressure.
"From a better risk-reward perspective, fresh buying can be initiated from the present juncture, which should contain around ₹622, the vicinity of the upper range value of the falling channel," said Upadhyay.
Maruti has been consolidating within a narrow range (near 100 DEMA) of approximately ₹12,000 to ₹12,500 in the past month.
This period of consolidation indicates a phase of indecision or accumulation, where neither the buyers nor the sellers have had enough momentum to drive the price significantly beyond this range.
However, Maruti broke out of this consolidation zone in a recent trading session, moving above the ₹12,500 mark and closing near ₹12,600. This breakout is a significant technical development, suggesting buyers have gained control and could increase the stock price.
From a technical perspective, the Relative Strength Index (RSI), a momentum indicator, has also shown a bullish signal. The RSI has broken its previous swing high and is currently positioned near 60, just below the overbought threshold of 70.
This upward movement in the RSI further supports the bullish outlook, indicating increasing buying strength.
Havells has been hovering around the 9-day exponential moving average in the past five trading sessions. This is a signal of potential base formation.
What strengthens this observation is that the consolidation has taken place just above its previous all-time high of ₹1,985, further affirming a solid base.
In the most recent trading session, Havells broke out of this consolidation zone and comfortably closed near the 2050 mark, which indicates positive momentum.
On the technical front, the Relative Strength Index (RSI) on the daily scale has bounced from the 65 level, suggesting bullish momentum in the upcoming sessions.
In July 2024, JK Paper experienced a significant rise, peaking at around ₹ ₹639. However, since then, the stock has declined by about 28 per cent.
The stock seems to stabilise as it finds support near its 200 DEMA. This support level aligns with the 0.618 Fibonacci retracement level, indicating that the current price levels may attract potential buyers.
On the technical side, the daily RSI shows an impulsive V-shaped structure near the oversold zone, suggesting a potential bullish reversal in the coming weeks.
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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
