Stocks to buy: The Indian stock market benchmark, the Nifty 50, snapped its three-week winning run last week, falling about 1.5 per cent, on concerns over an economic slowdown in the US and SEBI's September 9 deadline over FII's disclosure norm.
SEBI issued a circular in August 2023 requiring foreign institutional investors (FIIs) with significant investments in Indian stocks to disclose more detailed information. An FII must reveal all entities involved if it has over 50 per cent of its Indian equity assets in one corporate group or has high exposure to the Indian equity market. This includes anyone with ownership, economic interest, or control in the FII.
Experts observed that the Nifty 50 formed a long bearish candle on the weekly scale, and on intraday charts, it holds a lower top formation, which supports further correction from the current levels.
"We are of the view that the current market texture is weak, but for the short-term traders now 20, 20-day SMA or 24,820 would act as a sacrosanct support zone. Below the same, the selling pressure is likely to accelerate, and the market could retest the level of 50-day SMA or 24,600 and 24,500. On the other side, above 25,000, the market could bounce back up to 25,100-25,150," said Amol Athawale, VP-Technical Research, Kotak Securities.
Experts suggest investors should be prudent in stock selection and bet on only quality stocks at this juncture. Based on the recommendations of several experts, here are 12 stocks that can rise 7-22 per cent in the next three to four weeks. Take a look:
Between March 2023 and June 2024, Hikal entered a consolidation phase, trading within a narrow range of ₹260 to ₹320.
This extended consolidation indicates a period of accumulation where neither buyers nor sellers could dominate, keeping the stock's price movement within a defined range.
Such phases often suggest that the market awaits a catalyst to trigger a directional move.
In Hikal's case, the stock eventually broke out of this range with a surge in trading volume—a clear signal of shifting market sentiment towards a bullish outlook.
Following this breakout, the stock rallied by approximately 40 points, highlighting the strength of the bullish move.
Despite this rally, recent price corrections (excluding the last week) provide a renewed opportunity for buyers.
“The weekly Ichimoku baseline has now become a key support level. This support level aligns closely with the previous breakout range, creating a confluence of technical factors that suggest the stock is well-positioned for further upward movement. This makes Hikal a compelling buy for investors,” said Patel.
The stock rose to ₹149 in May 2024, but it has been experiencing a significant decline since then.
This decline brought the stock down to a critical support level, forming a triple bottom pattern in the range of ₹105-108.
The triple bottom pattern at a previous demand zone is often considered a bullish signal. It suggests that the stock has found strong support at these levels and may be poised for a reversal.
The stock saw a surge in trading volume during the August 30, 2024, session, indicating renewed investor interest.
“The price action in this session was strong enough to give a bull cross on the daily MACD scale, signalling a potential shift from a downtrend to an uptrend,” said Patel.
After reaching around ₹70 in July 2024, the stock experienced a notable correction, which brought it down to a critical support level located within the demand zone of ₹50-53, a level that previously acted as strong support during its prior uptrend.
A bullish bat pattern has emerged at this crucial support level—a harmonic pattern known for signalling potential bullish reversals.
The bullish bat pattern is typically formed when the price action retraces to specific Fibonacci levels, indicating that the stock is poised to reverse its recent decline.
The emergence of this pattern, combined with the stock finding support at a key demand zone, creates a strong confluence of technical indicators that point towards a potential upward move.
DMart has witnessed a robust breakout from a bullish pennant formation on the daily chart, supported by a notable increase in trading volumes, signifying heightened buyer interest.
The stock is firmly entrenched in a bullish trend, displaying a consistent pattern of higher highs and higher lows. Currently, prices are trading above both the 21-day and 55-day exponential moving averages (EMA), reinforcing the upward momentum.
The 14-day RSI has also breached its trendline resistance, further strengthening the bullish outlook. Additionally, the MACD indicator has generated a buy signal, with the MACD line crossing above the signal line, suggesting further upside potential.
KEC International has successfully broken through a significant horizontal resistance level, which had previously acted as a supply zone for an extended period.
This breakout is supported by a sharp rise in trading volumes, indicating increased participation from new buyers. A bullish crossover between the 10-day and 21-day EMAs further strengthens the bullish momentum, signalling the potential for continued upside.
“The ongoing price action suggests the stock could maintain its upward trajectory, with a target level of ₹1,060,” said Upadhyay.
JK Cement share prices have broken out from an ascending triangle pattern on the daily chart, accompanied by a substantial increase in trading activity.
The chart exhibits a well-defined series of higher highs and lower lows, while the 55-day and 100-day EMAs remain comfortably below current price levels. The 14-day RSI has rebounded sharply above the 50 mark, indicating strong price momentum.
“Prices are expected to remain above the key support level of 4,450, which aligns with the 50 per cent Fibonacci retracement of the previous uptrend. A buy-on-dips strategy is favoured as long as the stock maintains levels above 4,450,” said Upadhyay.
Galaxy Surfactants has recently broken out of a symmetrical triangle on the daily chart, accompanied by a significant increase in trading volume. This suggests possible bullish momentum.
"If the price closes above the ₹3,070 level, it could potentially reach short-term targets of ₹3,300 and ₹3,400. To manage risk prudently, it is advisable to set a stop loss at ₹2,900 to protect your investment in case of an unexpected market reversal," said Bhojane.
Pidilite Industries stock shows signs of a potential breakout from a range on the daily chart, accompanied by a significant increase in trading volume. This indicates strong bullish momentum.
"If it closes above the ₹3,234 level, it could potentially reach short-term targets of ₹3,400 and ₹3,500. To manage risk, it is advisable to set a stop loss at ₹3,030 to protect your investment against an unexpected market reversal," said Bhojane.
Gujarat Fluorochemicals stock has recently broken out of a symmetrical triangle on the daily chart, accompanied by a significant increase in trading volume. This suggests possible bullish momentum.
"If the stock sustains above the ₹3,800 level, it could potentially reach short-term targets of ₹4,200 and ₹4,400. It is advisable to set a stop loss at ₹3,450 to protect your investment in case of an unexpected market reversal," said Bhojane.
The stock has indicated an ascending rising trend with a strong bias and is currently in a higher low formation on the daily chart, taking support at ₹2,282. This has indicated a decent pullback to improve the bias.
“The RSI has cooled off from the overbought zone. It is currently well-placed, indicating a positive trend reversal to signal a buy with much upside potential visible,” said Koothupalakkal.
The stock has been consolidating after the slide from ₹336, maintaining support near ₹278. Rising volume participation indicates improvement in the bias. The RSI has been in consolidation, indicating a positive trend reversal and a further rise in the coming days.
“The chart looks technically well-placed, and the price has moved past the significant 50EMA level of ₹290 to indicate strength and carry on with the positive move further ahead,” said Koothupalakkal.
The stock has given a decent pullback from the low made near ₹140. A series of higher low and higher top formations has indicated a clear breakout above the crucial resistance level of ₹194 with improvement in bias and rising volume participation.
“The RSI has indicated strength with a positive trend reversal to signal a buy; it has much scope for an upside move from the current levels,” said Koothupalakkal.
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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.
