Stocks to buy: Indian stock market benchmarks—the Sensex and the Nifty 50—traded with decent gains on Monday, November 11, supported by select banking and IT heavyweights such as HDFC Bank, ICICI Bank, Infosys, and TCS.
Sustained foreign capital outflow, uncertainty about the future course of interest rates, weak Q2 earnings, and stretched domestic market valuation keep the mood sombre.
"Worse-than-expected earnings downgrades for FY25 are weighing on stock prices, favouring the bears in the near term. FIIs may continue to sell and move money to the US, which has outperformed India so far this year," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, observed.
However, Vijayakumar added that at some point, valuations in India will become attractive, which will aid in a trend reversal favouring the bulls for a short while. Moreover, the weakness in Chinese stocks, which is a consequence of the disappointing stimulus package, will be positive for Indian stocks.
Experts appear cautious about the Indian market for the near term. They suggest that one should be prudent in stock selection and bet only on quality stocks. They recommend buying these seven stocks, expecting them to rise 8-15 per cent in the next three to four weeks. Take a look:
The stock has witnessed a short period of correction. It halted the slide near the strong support of ₹2,650.
The stock has attempted a reversal on multiple occasions to give a decent pullback. It is on the rise, moving past the important 50EMA (exponential moving average) level of ₹2,890 to improve the bias.
The RSI has indicated a positive trend reversal to signal a buy, as it is on the rise with much upside potential visible from the current level.
The stock has witnessed a decent erosion from the peak of ₹3,035. It has shown signs of reversal, with the RSI hovering near the highly oversold zone, indicating some improvement.
A positive trend reversal is signalling a buy.
"The chart technically looks well-poised with much upside potential visible, and once a decisive breach above the 200-period MA (moving average) at the ₹2,540 level is confirmed, one can expect a fresh upward move with a target of ₹2,780, keeping the stop loss of ₹2,380," said Koothupalakkal.
After witnessing a gradual slide, the stock bottomed out near the ₹280 level, indicating a decent pullback to move past the 50EMA level of ₹310.
It has moved past the important 200-period MA at ₹333 with significant volume participation witnessed to improve the bias, signalling a further rise in the coming days.
The RSI is on the rise with strength indicated, and it can continue with the positive move further ahead.
Ashok Leyland has recently broken out from a falling trendline on the daily chart, accompanied by a notable increase in trading volume, signalling a potential bullish reversal.
"A close above ₹225 could pave the way for short-term targets of ₹240 and ₹245. Immediate support is at ₹215, offering a buying opportunity on dips. To manage risk effectively, it is advisable to set a stop-loss at ₹210 to protect against unexpected market reversals," said Bhojane.
Indian Hotels has recently broken out from a triple bottom pattern on the daily chart. This consolidation and a significant increase in trading volume suggest the potential for bullish momentum.
"A close above ₹740 could trigger a move towards short-term targets of ₹820 and ₹840. Immediate support is at ₹705, providing a buying opportunity on dips. To manage risk effectively, it is advisable to set a stop-loss at ₹680 to protect against any unexpected market reversals," Bhojane said.
Alkem Laboratories' share prices have seen a notable decline in recent weeks.
However, they are now approaching a key support zone, suggesting a potential halt in the ongoing downtrend and renewed interest from bullish participants.
"We anticipate prices to hold steady above the ₹5,400-5,450 support range, which aligns with both the rising trendline on the weekly chart and the 34-week EMA—a historically strong support level. With the validation of this critical ₹5,400 support level, an upward move towards ₹6,095 becomes a likely target," said Upadhyay.
Prices have decisively broken above the upper boundary of a symmetrical triangle pattern, confirmed by a significant increase in trading volume, indicating strong participation from new buyers.
The stock is in a clear uptrend, reflected by its formation of higher highs and higher lows on the daily chart and trading above all key moving averages.
Additionally, the 14-day RSI displays an ascending triangle pattern, further reinforcing the bullish outlook.
"Given these technical tailwinds, we anticipate a continuation of the upward trajectory, with the potential to reach ₹839. On the downside, immediate support is observed around ₹720, where any pullback is likely to find a base," Upadhyay said.
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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.
