Stocks to buy: Indian stock market benchmark Nifty 50 lost nearly 2 per cent last week amid rising geopolitical tensions, unimpressive Q4 numbers and feeble hopes of rate cuts this year.
Nifty 50 formed a bearish candle on the weekly chart and market experts expect the index to remain volatile in the short term.
Brokerage firm Axis Securities expects Nifty 50 to trade in the range of 22,600-21,750 with mixed bias this week.
"The chart pattern suggests that if Nifty 50 crosses and sustains above the 22,300 level, it may see buying, leading the index towards 22,500-22,600 levels. However, if the index breaks below the 22,000 level, it could witness selling, taking the index towards 21,850-21,750," Axis Securities said.
The brokerage firm pointed out that the weekly strength indicator RSI is moving downwards and is below its reference line, indicating a negative bias in the short term.
The current market structure warrants cautious trade and experts recommend buying only quality stocks with healthy fundamentals and technical indicators.
Several analysts recommend these nine stocks to buy for the next three to four weeks as they look attractive on technical charts. Take a look:
Whirlpool's weekly chart demonstrates a strong bullish breakout above a swing high of ₹1,400, supported by a robust bullish candle, signalling a positive bias.
The stock found support at ₹1,220, which was a swing low formed in February 2023, and experienced a strong reversal; it may potentially form a double bottom pattern.
The stock is holding above key moving averages of 20, 50, 100, and 200 days, indicating an uptrend in both the short and medium term.
The weekly strength indicator RSI is holding above its reference line, indicating positive bias.
The stock has exhibited a breakout above the consolidation zone between ₹545-430 on the weekly chart, indicating a continuation of the medium-term uptrend.
It found support above the 38 per cent Fibonacci retracement level of the rally from ₹197 to ₹541 at ₹412, establishing a medium-term base that may support further upward movement.
The stock is forming higher highs and higher lows on the weekly chart, while also maintaining above an upward-sloping trendline, indicating an upward bias.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
On the weekly chart, Repco Home Finance has broken out above the consolidation zone between ₹480-370, signalling the continuation of an uptrend.
It has found support above the 38 per cent Fibonacci retracement level of the rally from ₹168 to ₹492 at ₹370, establishing a medium-term base for potential further upward movement.
The stock's break above the upper Bollinger band has generated a buy signal.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
Following a peak at ₹933, the stock underwent a significant downturn, experiencing a sharp decline of nearly 260 points, or 27 per cent, in its overall value.
However, over the week, it managed to stabilise around ₹675 level, forming a sustained support base.
Notably, during this period, a bullish alternate pattern emerged near the ₹680-710 level, providing further confirmation of positive market sentiment.
Additionally, analysis of the daily RSI indicator reveals a bear trendline violation, indicating a favourable outlook for the stock.
"Considering these factors and chart patterns, investors may find it prudent to consider initiating buy positions within the range of ₹710-740, with an upside objective targeted at ₹840. To manage risk, a stop loss order should be set at ₹665 on a daily closing basis," said Patel.
Over the previous year, Hikal established a strong support zone spanning from ₹250 to ₹260, undergoing numerous tests highlighting its resilience amidst downward pressure.
Recently, a significant breakthrough occurred as the stock surpassed a bearish trend line that had restricted its movement for the past three to four years, and notably, it has maintained this breakthrough.
This signals a fundamental shift in market sentiment toward the stock. Additionally, the weekly RSI has exceeded its own multiyear bearish trend line on the indicator front, indicating bullish momentum in the short to medium term.
"Considering these technical signals, we advise traders and investors to initiate long positions in Hikal within the range of ₹285 to ₹300, with an upside target set at ₹375. To manage risk effectively, we suggest placing a stop loss order near ₹250 on a daily closing basis," said Patel.
Following its double top formation near the ₹4,900-4,800 zone, Navin Fluorine International experienced a significant downturn of nearly 2,000 points or 41 per cent.
However, in the last five to six trading sessions, it found support near the ₹3,000 mark.
Concurrently, a bullish crab pattern has been formed on the daily chart, signalling a potential reversal in trend.
A "regular bull divergence" has been identified on the RSI daily scale, indicating strengthening bullish momentum.
"Based on these technical indicators, investors may consider initiating long positions within the range of ₹3,200-3,250. The upside target for this trade is set at ₹3,600. To manage risk, a stop loss order should be placed near ₹3,040," said Patel.
The stock has indicated a positive bullish candle formation after the consolidation period, taking support at the 50EMA level of ₹813 to improve the bias and indicating further rise in the coming days. The RSI has cooled off from the overbought zone and is currently well placed signalling a buy.
The stock has witnessed a steady rise in the last two to three months continuing to make new highs with a strong uptrend maintained.
After a short correction, it has once again regained strength to indicate a further rise in the coming sessions.
The RSI is well placed and has the potential to carry on with the positive move further ahead.
The stock has maintained a strong uptrend after it indicated a breakout above the ₹1,590 level. After a short dip, it has once again regained the upward move and indicates a further rise in the coming days.
The RSI has cooled off to some extent from the highly overbought zone and indicated a positive move further ahead.
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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
