The index lost 1.24 percent last week following weaker-than-expected December quarter earnings from heavyweight HDFC Bank. Moreover, fading optimism about an early tax cut and geopolitical concerns kept investors cautious.
Market watchers point out that the Nifty 50 has a strong resistance at 21,800 and if the index falls below this level, a sideways trade is expected.
“We have expressed our lack of confidence to climb back on the 22,240-22,400 trajectory ahead of 21,800 presenting stiff resistance. While we await a break beyond the same for confirmation, a slide beyond 21,570 may lend itself to a sideways trend with a negative bias,” said Anand James, Head of Markets Strategist at Geojit Financial Services.
“A slow drop to the 20,900 neighborhood is a scenario we’ve been watching for in the last week, but we’ll be watching for bargain hunting to re-emerge before testing 21,350,” James said.
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As the market sentiment seems cautious, experts recommend buying technically and fundamentally sound stocks at the current juncture. Based on the recommendations of several experts, below are 9 stocks that you can consider buying over the next three to four weeks. Check out:
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
HDFC bank | Target price: ₹1,575 | Stop loss: ₹1 425
Over the last two years, this stock has been rejected six times by the ₹1,725-1,750 zone and is currently placed near the ₹1,535 mark.
Currently, HDFC Bank has taken timely support, retracing almost 0.707 percent from its recent up move.
A long-term bull trend was set nearby ₹1,500, which is right around the aforementioned 0.707 percent retracement.
On the indicator front, the weekly MACD hasn’t made any bearish signals, and the weekly stochastics are taking a breather from their recent 260-point move.
“Based on the technical setup, one can accumulate this stock in the range of ₹1,460-1,490 with a stop loss of ₹1,425 and purpose of ₹1,575,” said Patel.
Cochin Shipyard | Target price: ₹950 | Stop loss: ₹815
This counter was in a stellar rally as it made higher highs and higher lows.
Also, it has nicely followed major DEMAs on a regular basis. In previous trading sessions, it took out its previous swing high and sustained above it.
On the indicator front, daily stochastics have once again entered the overbought zone, which is a sign of strength.
“One can buy this stock in the zone of ₹850–870 for purpose of ₹950, and the stop loss should be ₹815 daily close,” said Patel.
Tanla Platforms | Target price: ₹1,300 | Stop loss: ₹1,107
Over the last three weeks, this counter has consolidated in the range of ₹1,070–1,150.
On January 10, it took out the aforementioned range, thus making it profitable at current levels.
On the indicator front, the Weekly MACD has given a bullish cross just above the zero line, which is a sign of further bullishness on the counter.
“One can buy this stock in the range of ₹1,165–1,180 with an advanced target of ₹1,300 and a stop loss of ₹1,107 daily close,” said Patel.
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Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher
Jindal Stainless | Target price: ₹645 | Stop loss: ₹555
The stock has gained a lot of strength in the last two years with a strong upward trend visible with regular instances of consolidation and then regaining the momentum for a fresh upward movement.
Currently, after the short correction of the peak of ₹622, the stock has indicated signs of a trend reversal taking support nearby ₹557 and with an improvement in the bias, is expected to rise in the coming days.
The stock has maintained above the significant 50EMA level for the past two months.
“With support currently visible nearby ₹555 level, one can buy this stock for an additional potential target of ₹645 maintaining the stop loss of ₹555,” said Koothupalakkal.
The stock regained strength after the brief correction, forming a flag pattern on the daily chart with new round momentum evidenced by a bullish candle.
With the support taken close by ₹127, the stock indicated a trend reversal, signaling a further rise in the coming day.
“With a decisive break above the previous peak level of ₹150, a new breach would be triggered for the following purposes of ₹162 and ₹177 visible. The RSI has also cooled from the heavily overbought zone and is currently well placed to support our view,” Koothupalakkal said.
NMDC | Target price: ₹237 Stop loss: ₹196
The stock has been in a strong uptrend for five to six months. After a brief correction, it again showed signs of a bottom, taking support nearby ₹196 and indicating a trend reversal with a positive bullish candlestick pattern on the daily chart.
The RSI indicator also significantly corrected from the heavily overbought zone and reversed to signal a buy.
“With a lot of upside potential visible again, we suggest buying and accumulating the stock for an additional target of ₹237 and ₹251 levels, maintaining the stop loss of ₹195,” said Koothupalakkal.
Also Read: Bag today: Sensex, Nifty 50 fall almost 1% after strong opening: 5 key reasons behind the market fall
Gaurav Bissa, VP, InCred Equities
Paradeep Phosphates | Target price: ₹92 Stop loss: ₹75
Paradeep Phosphate was in an 18-month consolidation and formed a rising wedge pattern.
It recently witnessed a breakout of this pattern on the weekly charts behind strong volumes but failed to capitalize on the momentum giving market participants an opportunity to enter the stock for a strong top.
RSI is currently trading near 70 levels on the weekly charts, which once supports above 72 can give a strong push to the share price to ₹95 levels.
Hindustan Oil Exploration Company was in an 18-month consolidation.
However, it recently witnessed incremental volumes suggesting a strong rally in the stock.
The stock has shown a breakout on daily charts along with a buy signal in the Ichimoku system on a daily time frame, which may result in the start of a fresh uptrend.
It also witnessed a rising MACD crossover, which can give a strong push to the price to ₹220 level.
India Nippon witnessed multiple breakouts on the weekly charts.
It witnessed a break of a seven-year bullish triangle pattern on the back of strong volumes.
It also witnessed a minor swing break above ₹630 level suggesting that a strong uptrend can be seen in the near future.
RSI is comfortably trading above 70, which is likely to keep the trend strong.
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Disclaimer: The views and recommendations above are those of individual analysts, experts and second-hand companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 23 Jan 2024, 13:15 IST