Stocks to buy: Falling for the fourth consecutive week, frontline index Nifty 50 shed nearly 3 per cent for the week ended October 25, driven down by significant foreign capital outflows, lacklustre Q2 earnings, high valuations, and growing uncertainty surrounding the US elections.
The benchmark index is now down 8 per cent from its all-time high of 26,277.35, recorded on September 27.
On the fundamental front, there is no fresh, positive trigger for the market, and experts anticipate the weakness could continue until the US election on November 5.
There are chances of a pullback on the technical front, but the chances of a sustainable rally look unlikely.
Amol Athawale, technical research at Kotak Securities, pointed out that the market consistently faced selling pressure at higher levels. After a long time, it slipped below the 100-day SMA (simple moving average) last week, which is largely negative. It also formed a long bearish candle on weekly charts, which supports further weakness from the current levels.
"We believe that the current market texture is weak but oversold; hence, the strong possibility of a pullback rally from the current levels is not ruled out. For the traders now, 24,100 would act as a key support zone. Above this, we could expect one technical bounce back till 24,500 and 100-day SMA or 24,600," said Athawale.
"A fresh selloff is possible only after the dismissal of 24,100. Below this level, the market could slip to 24,000-23,800," Athawale said.
Experts say one should be cautious when selecting stocks at this juncture. Based on the recommendations of several experts, here are seven stocks that may rise 5-14% in the next 3-4 weeks. Take a look:
Britannia's stock has substantially declined, dropping by around 13.5 per cent in the past month.
However, it appears to have found strong support at the ₹5,600 level, a region that previously acted as a demand zone where buying interest emerged.
Observing the hourly chart, a bullish divergence is visible on the RSI hourly scale—indicating a possible reversal—as recent red candles have decreased in size while green candles are becoming larger.
This pattern suggests that selling momentum is weakening, and buyers may be gradually stepping in.
"Given these signals, we recommend a long position in Britannia within the ₹5,650-5,700 range, with an expected upside target of ₹5,950. To manage downside risk, a stop loss is suggested near ₹5,535, set on a daily closing basis. This technical setup suggests a potential recovery, provided the demand zone holds strong," said Patel.
Prices are currently finding support near the 200-day EMA (exponential moving average), and increasing trading activity at the current juncture confirms the scenario of a fresh bullish rebound with a potential upsurge towards ₹515 and ₹523.
The 14-day RSI shows a bullish divergence, indicating a bullish outlook ahead.
"Investors may consider initiating long positions within the ₹475–480 range, with target levels at ₹515 and ₹523. A stop loss is recommended for effective risk management below ₹456 to protect against downside exposure," said Upadhyay.
Coforge has shown a strong rebound from the key horizontal support zone of ₹6,700–6,800, rallying to reach a new all-time high.
This movement is underscored by a notable increase in trading volumes on the weekly chart, indicating a potential continuation of bullish momentum in the upcoming sessions.
Recently, prices witnessed a bullish crossover between the 10—and 21-day EMAs, while positive developments in the MACD indicator further strengthen the case for a bullish outlook ahead.
The stock has recently broken out of a classic cup-and-handle pattern on the daily chart, supported by a significant increase in trading volume, indicating potential bullish momentum.
"If the price sustains above ₹5,440, it could target ₹6,100 and ₹6,200 in the short term. For risk management, a stop loss can be set at ₹5,050 to safeguard against unexpected market reversals," said Bhojane.
The stock has recently reversed from a strong demand zone, finding support along a rising trend line on the daily chart.
The accompanying increase in trading volume signals potential bullish momentum.
"A closing price above ₹940 could lead to short-term targets of ₹1,050 and ₹1,060. Setting a stop loss at ₹888 is advisable to protect the investment in case of an unforeseen downturn," said Bhojane.
The stock has maintained its overall uptrend, recently taking support near ₹645 to form a double bottom formation on the daily chart.
It has witnessed a pullback to move past the 50EMA level of ₹672 with bias improving, and further rise is anticipated in the coming days.
With the RSI indicating a positive trend reversal to signal a buy, much upside potential is visible from the current level.
The stock has indicated a series of higher lows and higher highs on the daily chart, with an ascending channel pattern visible. It took support near the bottom zone of the channel at ₹710.
A pullback was witnessed with significant volume which signals a further rise in the coming days. The RSI has corrected well and is currently well-positioned, with much upside potential visible from the current level.
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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.
