Stocks to buy: Last week, Nifty 50, the benchmark index of the Indian stock market, extended its gains into the fifth consecutive week, gaining 1.3 per cent and forming a long bullish candle.
However, the index slipped in the morning session on Monday, July 8, as valuation concerns prevails amid the absence of fresh triggers.
Investors are now keenly awaiting the Union Budget and the Q1FY25 earnings of India Inc., which will set the tone of the market.
Experts hope the market still has some steam left, but it may see some selloff if the index slips to levels near 24,100.
“Weekly candles persistently staying above two standard deviations suggest that upsides have more room. Towards this end, we are willing to look beyond 24,400- 24,500, which we saw as a potential top last week, to 24,720-24,800 as the near-term objectives,” said Anand James, Chief Market Strategist, Geojit Financial Services.
"The downside marker is placed near 24250, not very far, but we will wait for slippage past 24,130 to abandon the upside view," said James.
Experts suggest betting on stocks that have solid fundamentals and sound technical indicators. Based on the recommendations of several experts, here are 10 stocks that can rise 6-21 per cent in the next 3-4 weeks. Take a look:
HDFC Life recently gave a clean breakout on the weekly chart, signalling a potential bullish trend.
Before this breakout, the stock had been consolidating for two weeks, precisely around the 200 exponential moving average (EMA) on the weekly scale.
This consolidation phase built a solid foundation for the subsequent breakout. The stock closed above the last three weeks' high of ₹603.
There have been significant violations of bearish trendlines, both in the price action and in the Relative Strength Index (RSI) on the weekly chart.
These trendline breaches, which persisted over the past six months, further reinforce the bullish outlook for the stock.
Cipla recently displayed a clean breakout on the daily chart, signalling a potential bullish trend.
Before this breakout, the stock had been consolidating for seven days, precisely on the 50-day exponential moving average (DEMA) on the daily scale.
This consolidation phase built a solid foundation for the subsequent breakout.
The stock closed above the last seven-day high of ₹1,500 and is currently positioned near the ₹1,510 mark.
Daily RSI has reversed from the 40 level and is currently placed near the 55 level, which is a positive sign for Cipla.
SJVN recently experienced a breakout on the daily chart, indicating a potential bullish trend.
Before this breakout, the stock had been consolidating for 18 days, precisely on the 50-day exponential moving average (DEMA) on the daily scale.
This consolidation phase created a solid foundation for the subsequent breakout.
The stock closed above the 18-day high of ₹139 and is currently positioned near ₹142.
The daily RSI has reversed from 40 and is now near 60, which is a positive indicator for SJVN.
The stock has been consolidating for quite some time, moving within a range and maintaining above the significant 50EMA level.
It indicates a big bullish candle formation with huge volume participation on the daily chart. Breaking above the ₹181 resistance level improves the bias and signals a further rise in the coming days.
With the RSI on the rise, indicating strength and signalling a buy, much upside potential is visible.
The stock, after a short period of correction from the recent peak of ₹154, has taken support near ₹1,015.
It has also witnessed a decent pullback to move past the significant 50EMA level of ₹1,044 to improve the bias.
The RSI has arrived at a very attractive and well-placed zone, indicating a trend reversal to signal a buy.
Also Read: Stocks to buy or sell: Shilpa Medicare to Shalby — Sumeet Bagadia recommends five breakout stocks
The stock has witnessed a short correction period from the peak level of ₹2,520. It has taken support near ₹2,300 thereafter, witnessing a pullback with a positive candle formation on the daily chart to form a higher low pattern.
It has improved the bias to signal a further rise. The RSI has cooled off significantly from the highly overbought zone and is well-placed, indicating a trend reversal to signal a buy.
ONGC has demonstrated a breakout above the symmetrical triangle pattern at ₹283 on the weekly chart, indicating the continuation of the medium-term uptrend.
The volume activity increased at the breakout, indicating a surge in the market participation at that level.
The stock took support at the 38 per cent Fibonacci retracement level of a rally from ₹188 to ₹292, positioned at 253, confirming a medium-term support base.
The weekly RSI has given a crossover above its reference line, generating a buy signal.
CESC displays a bullish trend on the weekly chart, characterised by higher highs and higher lows, supported by an upward-rising channel.
It took support at the lower band and is now heading towards the upper band.
The stock has successfully broken above a minor consolidation zone, which was forming within a rising channel between the ₹256 and ₹135 range.
This breakout suggests a continuation of the uptrend. The weekly RSI has given a crossover above its reference line, generating a buy signal.
Railtel has demonstrated a breakout above the consolidation zone pattern between ₹490-340 on the weekly chart, indicating the continuation of the medium-term uptrend.
The stock took support at the 38 per cent Fibonacci retracement level of a rally from ₹96-491, positioned at ₹338, confirming a medium-term support base.
The stock closed above the weekly upper Bollinger Band, generating a medium-term buy signal.
The weekly RSI is holding above its reference line, indicating positive bias.
MphasiS is trending within a rising channel, indicating it has found support at the lower band and is moving towards the upper band, suggesting an uptrend.
On the daily chart, the stock has formed an inverted head and shoulders pattern and has successfully broken above the neckline at ₹2,550, indicating the beginning of a short-term uptrend.
It is positioned above the key short and medium-term moving averages of 20, 50, 100, and 200 days, reinforcing a positive bias.
The weekly strength indicator RSI holds above its reference line, indicating positive bias.
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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.
