Business / Mon, 13 May 2024 Mint

Stocks to buy: Titan, Hero MotoCorp, Zomato among 10 stocks that can rise 6-16% in next 3-4 weeks; do you own any?

Stocks to buy: The Indian stock market benchmark Nifty 50 fell over a per cent in intraday trade on Monday, May 13. While the market sentiment is weak, market experts suggest picking stocks with strong technical indicators for the short term. Based on the recommendations of several experts, here are 10 stocks that can rise 6-16 per cent in the next 3-4 weeks. Analysis of its daily chart reveals the emergence of a bullish engulfing candlestick pattern, a crucial signal indicating potential upward momentum. The RSI is well positioned, indicating a halt to the slide, and, with a reversal anticipated, has much upside potential from the current rate.

Stocks to buy: The Indian stock market benchmark Nifty 50 fell over a per cent in intraday trade on Monday, May 13. The domestic market witnessed strong volatility as the India VIX jumped 12 per cent to a 52-week high of 21.49 during the session.

Market experts expect volatility to continue due to strong foreign capital outflow ahead of the outcome of the Lok Sabha election 2024.

According to brokerage firm Axis Securities, Nifty may trade in the range of 22,500-21,500 with a negative bias for the week.

"The weekly strength indicator RSI is moving downwards and is quoting below its reference line, indicating a negative bias," Axis Securities said.

"The chart pattern suggests that if Nifty crosses and sustains above the 22,150 level, it would witness buying, leading the index towards 22,300-22,500 levels. However, if the index breaks below the 21,900 level, it would witness selling, taking the index towards 21,700-21,500," said the brokerage firm.

While the market sentiment is weak, market experts suggest picking stocks with strong technical indicators for the short term. Based on the recommendations of several experts, here are 10 stocks that can rise 6-16 per cent in the next 3-4 weeks. Take a look:

Also Read: Lok Sabha Election 2024: Market erases nearly ₹10 lakh crore in a week; will the selloff continue after result?

Axis Securities

Hero MotoCorp has demonstrated a breakout above the medium-term falling channel pattern at ₹4,635 on the weekly chart, suggesting the continuation of an uptrend.

During pattern formation, volume activity tends to decline, while at the breakout, there is an increase in activity, indicating an influx of market participation.

The stock has established a support base at ₹4,160, holding above the 38 per cent Fibonacci retracement level of the rally from ₹2,900 to ₹4,949, indicating potential medium-term support.

The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.

Also Read: ‘Market expecting positive end to the elections’

Godrej Consumer Products has demonstrated a breakout above the 13 weeks of consolidation zone between ₹1,280-1,150 on the weekly chart, suggesting the continuation of an uptrend.

The stock is currently trending within a rising channel, having recently found support at the lower band and progressing towards the upper band.

The stock's closing above the weekly upper Bollinger Band signals a medium-term buying opportunity. The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.

Also Read: Stock market outlook: Expect no deep and prolonged correction; Nifty may see low-teen upside by March 2025: UBS

On the weekly chart, Zomato has broken out above the small consolidation zone between ₹200-180, signalling the continuation of the uptrend.

The stock has experienced a notable increase in volume activity, suggesting a surge in market participation.

It displays a bullish trend on the weekly chart, characterised by higher highs and higher lows, and is further supported by an upward-sloping channel, suggesting a prevailing upward bias.

The weekly strength indicator RSI holds above its reference line, indicating a positive bias.

On the weekly chart, Kirloskar Electric Company has broken out above the rounded bottom pattern at 164 with a strong bullish candle, signalling the onset of the uptrend.

During pattern formation, volume activity tends to decline, while at the breakout, there is an increase in activity, indicating an influx of market participation.

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 holds above its reference line, indicating a positive bias.

Also Read: Amit Shah predicts THIS for Indian stock market after Lok Sabha election results

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers

From the level of ₹3,800, which it hit on April 1, 2024, this stock witnessed a significant downturn of nearly 600 points or 16 per cent.

However, amidst this downturn, a compelling opportunity has emerged. The stock exhibits a bullish AB=CD Pattern with a 1:1 leg ratio, signalling a potential reversal near the ₹3,200-3,250 zone.

This pattern, coupled with the Relative Strength Index (RSI), adds to the allure of the current juncture.

The RSI indicator reveals a complex structure resembling a W shape within the oversold zone, suggesting a robust potential for an upward price movement.

In the current market scenario, a significant event is unfolding within HAL.

Analysis of its daily chart reveals the emergence of a bullish engulfing candlestick pattern, a crucial signal indicating potential upward momentum.

This pattern's occurrence aligns precisely with the daily middle Bollinger band.

This confluence of factors bolsters positive sentiment surrounding HAL, suggesting a favourable outlook for the stock.

Furthermore, by examining the indicator dynamics, it is observed that the daily stochastic oscillator has made a hidden bull divergence.

This condition typically implies an underlying bullish bias within the stock's movement.

Detailed scrutiny of its daily chart reveals a pivotal occurrence: the emergence of a bullish candlestick precisely on the middle Bollinger band after a 19 per cent correction from its recent peak.

This nuanced observation is complemented by a compelling insight from the indicator analysis, as the daily stochastics depict a hidden bull divergence.

This convergence of technical signals not only underscores the resilience of Aegis Logistics amidst market fluctuations but also amplifies the optimistic sentiment surrounding the stock.

Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher Pvt Ltd

Zensar Technologies | Previous close: ₹ 603.45 | Target price: ₹ 668 | Stop loss: ₹ 572 | Upside potential: 11%

After a short slide, the stock again took support near the important 100 period moving average (MA) at ₹578 and indicated a decent reversal with a positive candle formation moving past the significant 50EMA level of ₹590.

It is anticipated that there will be a further rise in the coming days.

The RSI is well positioned, indicating a halt to the slide, and, with a reversal anticipated, has much upside potential from the current rate.

Pidilite Industries | Previous close: ₹ 2,919.95 | Target price: ₹ 3,220 | Stop loss: ₹ 2,800 | Upside potential: 10%

The stock has recently slipped from ₹3,118 level and has taken support near the important 100 period MA at ₹2,780 level thereafter, witnessing a pullback to improve the bias.

It has moved past the significant 50EMA level of ₹2,890 to establish conviction and can anticipate for further rise in the coming days.

The RSI is well placed, indicating a trend reversal to signal a buy, and can carry on with the positive move further ahead.

JSW Energy | Previous close: ₹ 570.25 | Target price: ₹ 640 | Stop loss: ₹ 530 | Upside potential: 12%

The stock has recently witnessed a steep correction and has shown signs of taking support near ₹520 level, indicating a pullback moving past the significant 50EMA level of ₹562 to improve the bias.

The RSI has witnessed a steep reversal from near the oversold zone, and with the chart looking attractive, there is much upside space visible for the stock to carry on with the positive move.

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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.

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