Stocks to buy: After witnessing a solid gain of nearly 2 per cent in the previous session, Indian stock market benchmark Nifty 50 rose over half a per cent in the morning trade on Monday, July 29, to hit its fresh all-time high of 24,980.45.
The domestic market is ignoring valuation concerns and marching forward, and this trend is expected to continue in the coming months, given the prospects of India's robust economic growth and the start of the rate-cut cycle.
"The undercurrent of this bull market has turned stronger on positive cues. The soft landing scenario for the US economy and the expectation of a Fed rate cut in September are intact. This will support this bull market globally," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
For the short term, experts recommend buying stocks that appear attractive on technical indicators. Based on the recommendations of several experts, here are nine stocks that can rise 4-16 per cent in the next 3-4 weeks. Take a look:
Excluding the previous trading session, Adani Ports has been trading within a price range of ₹1,480-1,520, indicating a period of consolidation where the stock's price has remained relatively stable and moved sideways.
However, the stock broke above this range during the last trading session and closed higher, suggesting further bullish momentum.
The RSI has reversed from the 50 level on the indicator front, further supporting our bullish outlook.
"We recommend buying Adani Ports stock during pullbacks near the ₹1,530-1,540 range, with an upside target of ₹1,650. To manage risk, a stop loss should be set near ₹1,480 on a daily close basis," said Patel.
Apart from the previous trading session, Cipla has been trading within a narrow price range of ₹1,485-1,535.
This indicates a period of consolidation, where the stock's price has been relatively stable and moving sideways.
However, during the previous trading session, Cipla decisively broke above this range with massive volume, suggesting further bullish momentum.
On the indicator front, the Relative Strength Index (RSI) has reversed from the 50 level, which further affirms our bullish bias.
"We recommend buying Cipla during pullbacks near the ₹1,525-1,540 range, targeting an upside of ₹1,635. To manage risk, a stop loss should be set near ₹1,495 on a daily close basis," said Patel.
After reaching a peak near the ₹101 mark in September 2023, the stock experienced a substantial correction of 30 points, or 29.34 per cent decline from its high.
Recently, the stock found support near the 0.618 retracement level of its previous up move from ₹53 to ₹101.
A bullish bat pattern has formed precisely at this 0.618 retracement level, making the current levels attractive for buying.
"Based on these technical indicators, buying in the ₹72-75 zone is recommended. The target price is set at ₹84, with a stop loss placed near ₹68.5 on a daily close basis," said Patel.
The stock has been maintaining a solid base near ₹385.
It has indicated a positive candle formation on the daily chart, moving past the confluence of 50EMA (exponential moving average) and 200 period MA (moving average) at ₹402, improving the bias and anticipating a further rise in the coming days.
The RSI is well-placed currently and, after a short period of correction, has once again indicated a trend reversal to signal a buy.
"With much upside potential visible, we suggest buying the stock for an upside target of ₹462, keeping the stop loss of ₹385," said Koothupalakkal.
The stock, after witnessing a decent correction, has taken support near the long-term trendline at ₹760. It has indicated a decent pullback to improve the bias.
The RSI has corrected well and is near the oversold zone, indicating a positive trend reversal to signal a buy, with much upside potential and strength visible.
"With the chart technically looking good, we suggest buying the stock for an upside target of ₹900-940 levels, keeping the stop loss of ₹745 (200 period MA)," said Koothupalakkal.
After witnessing a decent correction, the stock has arrived near the important 100-period MA at ₹3,400 zone and has taken support near the long-term trendline zone, indicating a decent pullback to improve the bias.
The RSI has corrected well and is positioned at an attractive zone, indicating a trend reversal to signal a buy.
"With the chart technically looking good and with much upside potential visible from the current rate, we suggest buying the stock for an upside target of ₹4,200, keeping the stop loss of ₹3,370," said Koothupalakkal.
PEL has demonstrated a breakout above the multiple resistance zone around ₹970 on the weekly chart, signalling the onset of a medium-term uptrend.
The stock closed above the weekly upper Bollinger band, generating a buy signal for the medium term.
It is positioned above the key short—and medium-term moving averages of 20, 50, 100, and 200 days, indicating a positive bias.
The weekly RSI holds above its reference line, indicating a positive bias.
Quess has confirmed a breakout above the medium-term multiple resistance zone around the ₹665 level on the weekly chart with a strong bullish candle, indicating the continuation of the medium-term uptrend.
The increase in volume activity at the breakout signifies a surge in market participation.
The stock forms higher highs and higher lows on the weekly chart and holds above the upward-sloping trendline, indicating a positive bias.
The weekly RSI strength indicator crossover above its reference line generated a buy signal.
Ashok Leyland has demonstrated a breakout above the consolidation zone between ₹244-222 on the weekly chart, indicating the continuation of the uptrend.
Volume dried during the consolidation period, then increased at the breakout, indicating a significant influx of participation.
The stock took support at the 23 per cent Fibonacci retracement level of a rally from ₹157 to ₹245 positioned at ₹225, confirming a medium-term support base.
The weekly RSI's crossover above its reference line has generated a buy signal.
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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.
