Stocks to buy: The selloff in the Indian stock market continued for the seventh consecutive session on Monday, with benchmark indices Sensex and Nifty 50 falling over half a per cent each in intraday trade. The domestic market has been declining primarily due to sustained foreign capital outflows, weak Q2 earnings from India Inc., a stronger US dollar, and rising bond yields following the US election outcome that has set the stage for Donald Trump's return as US President.
"Even though Nifty has corrected 10.4% from the peak, there are no signs of a sustained recovery in the market. Relentless FII selling, earnings downgrades for the majority of stocks for FY25, and the consequences of the Trump trade weigh on the market," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Experts believe the market lacks fresh triggers at this juncture. They suggest a cautious approach to stock selection. Based on recommendations by two experts, here are nine stocks that may rise 7-18 per cent in the next three to four weeks. Take a look:
Titan has been trading in a range of ₹3,050-3,870 over the past year and is currently near ₹3,180 after hitting a low of ₹3,106 on November 8, 2024.
The stock has consistently held the ₹ 3,100 support level, showing resilience. A bullish engulfing candlestick pattern and an impulsive RSI structure on the daily chart indicate a potential reversal.
"A buying opportunity is suggested in the ₹3,100-3,200 range, with a target of ₹3,500 and a stop-loss at ₹2,975 on a daily closing basis," Patel said.
Havells has corrected 25 per cent in the past month, dropping 516 points from its peak of ₹2,106.
It formed a double-bottom pattern near the ₹1,600-1,580 zone, aligning with the 0.50-0.618 per cent Fibonacci retracement levels of its previous uptrend.
Bullish divergence on the daily chart further supports a potential reversal.
"A buying opportunity is identified in the ₹1,590-1,610 range, with a target of ₹1,760 and a stop-loss at ₹1,520 on a daily closing basis," said Patel.
CIE Automotive India has declined 26 per cent over the past 3-4 months, dropping 164 points from its peak of 622.
It formed a Bullish Crab pattern near the ₹460-470 zone, aligning with the 0.707-0.618 per cent Fibonacci retracement levels of the previous uptrend.
Bullish divergence on the daily chart indicates a potential reversal.
"A buying opportunity is suggested in the ₹460-470 range, with a target of ₹518 and a stop loss at ₹438 on a daily closing basis," Patel said.
TCS shows a promising bullish setup on the weekly chart.
The stock recently found support near its long-term trendline, aligning with the 100-week EMA (exponential moving average) around ₹3,900, which has historically provided stability during pullbacks.
The recent bounce from this level with a steady increase in volume suggests renewed buying interest.
"A break above ₹4,240 could further strengthen the bullish sentiment, potentially paving the way for a rally toward previous highs. Maintaining above-the-trendline and EMA support should bolster confidence among buyers in the stock’s upward momentum," said Upadhyay.
L&T Technology Services (LTTS) appears to be in a strong uptrend on the weekly chart, maintaining a steady rise above its long-term trendline and 100-week EMA, which currently sits around ₹4,700.
The stock has recently bounced from the trendline, suggesting a solid support zone around ₹4,700. A breakout above ₹5,450 would likely trigger a rally towards previous highs near ₹5,850.
"The overall trend and rising volume lend confidence to the bullish momentum, indicating that LTTS could continue its upward trajectory if it sustains above key support levels," said Upadhyay.
Praj Industries is displaying a positive technical setup on the weekly chart. After a strong rally, it is currently undergoing a healthy pullback, finding support near the 50-week EMA of around ₹641, which has acted as a dynamic support level in previous corrections.
The stock has a strong support base at the ₹650 level, aligning with previous consolidation zones, suggesting accumulation interest at this price range. Volume patterns indicate steady buying interest on dips, hinting at a potential reversal.
"A sustained bullish move is likely to take place from the present juncture, potentially driving the stock towards its recent highs," Upadhyay said.
Shilpa Medicare has formed a bullish pennant on the daily chart. This consolidation phase and a significant increase in trading volume indicate potential bullish momentum.
"A close above ₹890 could open the path for short-term targets of ₹960 and ₹1,000. On the downside, immediate support lies at ₹830, which provides a buying opportunity on any dips. For effective risk management, setting a stop-loss at ₹810 is advisable to protect against any unexpected market reversals," said Bhojane.
Apollo Tyres has shown a robust bullish reversal from a key support level, forming a bullish engulfing pattern on the daily chart.
This is further supported by an increase in trading volume, indicating potential upward movement.
"A close above ₹480 could set the stage for a short-term target of ₹540. On the downside, immediate support is at ₹460, offering a buying opportunity on dips. A stop-loss at ₹445 is recommended to manage risk and protect against unexpected market reversals effectively," Bhojane said.
ZAGGLE is currently trading at ₹423.8 and has formed a descending triangle pattern, consolidating within a range of ₹410- ₹440 on the daily chart.
This consolidation is accompanied by increased trading volume, suggesting a potential breakout.
"A close above ₹440 could trigger short-term targets of ₹490 and ₹500. On the downside, immediate support is at ₹410, providing a buying opportunity on dips. To manage risk effectively, a stop-loss at ₹392 is recommended, protecting against any unexpected market reversals," said Bhojane.
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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.
