Stocks to buy: Extending gains into the second consecutive session, Indian stock market benchmark Nifty 50 jumped nearly 2 per cent in morning trade on Monday, November 25.
On Friday, across-the-board buying drove the Nifty 50 higher by 2.4 per cent to 23,907.25. The index snapped its two-week losing run.
With the Maharashtra election outcome declared, the focus now shifts back to the fundamentals, macro numbers, including Q2 GDP prints and global cues.
On the technical front, Ajit Mishra, SVP of Research at Religare Broking, pointed out that the Nifty 50 reclaimed its 200-day exponential moving average (DEMA) and is now approaching the next resistance at its 20-DEMA, near 24,020.
"A decisive move above this level could push the index further toward the 24,350-24,550 range. On the downside, 23,500 remains a strong support zone, cushioning any dips," said Mishra.
Experts suggest a cautious approach to stock selection. Based on recommendations by three experts, here are eight stocks that may rise 7-14 per cent in the next three to four weeks. Take a look:
Reliance has been following a textbook Elliott Wave 5-wave structure on the daily chart since March 2023.
This impulsive rally came to a decisive conclusion in July 2024, marking the end of the fifth wave and initiating a corrective ABC phase.
Such corrections are typical after the completion of a 5-wave cycle and often retrace to significant Fibonacci levels.
Currently, the ongoing correction appears to be approaching a critical support zone in the ₹1,220-1,240 range, aligning with the 61.8 per cent Fibonacci retracement level of the entire 5-wave structure.
This level is important as it typically serves as a strong support during corrective phases, indicating the potential for base formation. Moreover, these levels coincide with the completion of a bullish Crab harmonic pattern, further strengthening the case for a reversal.
"Given this confluence of technical indicators, traders can consider initiating long positions in the ₹1,230-1,270 range, placing a protective stop loss below ₹1,185 to manage risk. The anticipated upside target for this trade is around ₹1,374, offering a favourable risk-to-reward ratio as the stock is poised to resume its upward trajectory following the correction," said Patel.
Over the past eight to nine months, Bajaj Finance has been trading within a range of ₹6,400-7,800, consolidating without a decisive trend.
Recently, the stock found strong support near the ₹6,400 level and has shown a reversal from this support zone accompanied by decent trading volumes, indicating renewed buying interest.
In the previous trading session, it broke above the highs of the last four days, supported by a bullish divergence on the daily chart, which further strengthens the case for upward momentum.
"Considering these technical signals, a buying opportunity is identified in the ₹6,650-6,700 range, with an upside target of ₹7,350. A stop loss at ₹6,300 on a daily closing basis is advised to manage risk," Patel said.
Since November 2023, Havells India has been adhering to a classic Elliott Wave 5-wave structure on the daily chart.
This impulsive rally concluded decisively in September 2024, marking the end of the fifth wave and transitioning into a corrective ABC phase.
Such corrections typically follow a 5-wave cycle and often retrace to key Fibonacci levels.
Currently, the correction is nearing a critical support zone between ₹1,630-1,650, aligning with the 61.8 per cent-50 per cent Fibonacci retracement levels of the entire 5-wave rally.
This zone holds significance as it often acts as a strong support during corrections, suggesting potential base formation.
Additionally, the levels coincide with the completion of a double-bottom pattern accompanied by bullish divergence on the daily chart, further strengthening the likelihood of a reversal.
"Given this confluence of technical signals, traders may consider entering long positions within the ₹1,645-1,675 range. A protective stop loss below ₹1,560 is recommended to manage risk, while the anticipated upside target is around ₹1,825. This setup offers an attractive risk-to-reward ratio, with the stock positioned to resume its upward trajectory post-correction," said Patel.
Dabur India is showing signs of a potential rebound as the stock approaches a key support zone around ₹500-490, which aligns with historical demand levels.
The long-term trendline support reinforces the significance of this area, suggesting a possible reversal.
Additionally, the price action exhibits reduced bearish momentum, hinting at a consolidation phase.
A sustained bounce from the current levels, coupled with increasing volumes, could indicate renewed buying interest.
"On the upside, the next resistance is observed near ₹560, and a breakout above this zone may drive further bullish momentum," Upadhyay said.
Grasim’s stock prices are trending within a falling wedge. The price has recently rebounded from the channel's lower boundary near the 200-day EMA, indicating strong support.
The 200-day EMA acts as a key long-term bullish indicator. Additionally, the RSI is approaching a neutral zone, suggesting potential upside momentum.
"If the price sustained above the descending trendline, it could trigger a strong rally towards the upper range of this pattern, suggesting a bullish reversal in upcoming sessions," said Upadhyay.
Bharti Airtel has shown resilience by rebounding sharply from a crucial support zone near ₹1,500, which aligns with its previous breakout level.
The 200-day EMA, currently trending upward around ₹1,429, provides strong long-term support, reinforcing the bullish sentiment. The recent uptick in volume alongside price recovery indicates renewed buying interest.
"A sustained move above ₹1,540 could open doors for further upside, with immediate resistance seen around ₹1,665-1,684, while on the downside ₹1,490 will act as an immediate support," Upadhyay said.
LTIMindtree has recently witnessed a decisive breakout from a daily range, forming a strong bullish candle on the daily chart. The price action indicates a breakout after a period of consolidation, supported by robust trading volumes. This highlights strong buying interest and the potential for continued upward momentum. "If the price sustains above ₹6,100, it could act as a catalyst for further gains, with short-term targets of ₹6,700 and ₹6,800," said Bhojane.
"On the downside, the key support level is at ₹6,000, providing an attractive opportunity to buy on dips. For prudent risk management, it is advisable to maintain a stop loss at ₹5,800 to protect against unexpected market pullbacks," Bhojane said.
Oil India has formed a classic double-bottom pattern on the daily chart, indicating signs of a potential reversal.
This bullish development is reinforced by a significant uptick in trading volumes, underscoring strong buying interest and the likelihood of upward momentum.
"A decisive close above ₹510 could act as a trigger for further gains, with short-term targets of ₹570 and ₹580. On the downside, immediate support is positioned at ₹490, offering a favourable buying opportunity on dips. For effective risk management, it is prudent to maintain a stop-loss at ₹475 to safeguard against any unexpected market reversals," said Bhojane.
Bharti Airtel recently broke out of a falling trend line and formed a bullish engulfing pattern on the daily chart.
This formation, accompanied by a notable rise in trading volumes, indicates the potential onset of a bullish reversal.
"If the price sustains above ₹1,570, it could trigger upward momentum toward short-term targets of ₹1,700 and ₹1,730. On the downside, immediate support is identified at ₹1,520, offering a strategic entry point on pullbacks," said Bhojane.
"To mitigate risks, a stop loss at ₹1,490 is advisable to protect against unforeseen market fluctuations. This setup reflects a promising opportunity for traders seeking to leverage the bullish shift in sentiment," Bhojane 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.
