Stocks to buy: HUL, Grasim among 9 stocks that can rise 5-17% in short term
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According to Axis Securities, Nifty 50 may trade between 22,800 and 21,800 with a positive bias for the week.
The brokerage firm believes crossing and sustaining above the 22,500 level could trigger buying, driving the index towards 22,650 -22,800 levels.
However, if the index breaks below the 22,150 level, it may fall towards 22,000-21,800, the brokerage firm said.
Experts expect the market to see some volatility in the run-up to the General Elections. They recommend buying technically and fundamentally sound stocks for the short term.
Based on the recommendations of several experts, below are nine stocks that one can consider buying for the next three to four weeks. Take a look:
Axis Securities
IPCA Laboratories | Last traded price (LTP): ₹1,237.40 | Buying range: ₹1,235-1,211 | Target price: ₹1,300-1,345 | Stop loss: ₹1,185 | Upside potential: 9%
On the weekly chart, IPCA Laboratories has broken out of a small falling channel at ₹1,200, supported by a strong bullish candle, suggesting a continuation of the medium-term uptrend.
The stock is exhibiting a medium-rising channel trend, finding support at the lower band and poised to advance towards the upper band.
It has closed above the daily upper Bollinger band, signalling a buying opportunity in the short term also.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
Also Read: Stocks to buy: Fincalbes and Petronet among top choices, here’s why
Mrs. Bectors Food Specialities | LTP: ₹1,114.70 | Buying range: ₹1,120-1,098 | Target price: ₹1,245-1,280 | Stop loss: ₹1,040 | Upside potential: 15%
Mrs. Bectors Food Specialities demonstrates a bullish breakout above the small falling channel formation at ₹1,100 on the weekly chart, signalling the positive bias.
It maintains support above the 38 per cent Fibonacci retracement level of the rally from ₹245-1,374 at ₹942, forming a medium-term base for further potential upward movement.
The stock is demonstrating strong support at ₹950, indicating it may serve as a medium-term support level moving forward.
The weekly Relative Strength Index (RSI) is in bullish mode and holding above its reference line, suggesting a positive bias in the stock.
Also Read: Why midcaps & smallcaps are seeing steady recovery from their low on March 20 – Explained
ICICI Prudential Life Insurance Company | LTP: ₹608.65 | Buying range: ₹600-588 | Target price: ₹692-713 | Stop loss: ₹545 | Upside potential: 17%
On the weekly chart, ICICI Prudential Life Insurance Company has broken out above the neckline of an inverted head and shoulders pattern at ₹605, signalling a shift in trend towards a positive bias.
After the breakout from the inverted head and shoulders (IHS) pattern, the stock typically experiences increased bullish momentum as it confirms a reversal in the previous downtrend.
The stock is maintaining levels above the key moving averages, including the 20, 50, 100, and 200-day SMAs (simple moving averages), suggesting a positive bias in its trend.
The weekly Relative Strength Index (RSI) is in bullish mode, and holding above its reference line, suggesting a positive bias in the stock.
Also Read: FY25 Outlook: Can Nifty 50 repeat the feat of FY24? 5 crucial challenges that loom
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Hindustan Unilever (HUL) | LTP: ₹2,264.35 | Target price: ₹2,500 | Stop loss: ₹2,145 | Upside potential: 10%
From the level of ₹2,669 on January 1, 2024, Hindustan Unilever experienced a notable downturn, witnessing a significant decline of approximately 435 points, or about 16 per cent.
However, in the subsequent six trading sessions, it displayed resilience, avoiding further declines and instead consolidating within a range spanning from ₹2,230 to ₹2,280.
Within this price range, a bullish AB=CD pattern was formed on the daily chart. This range also corresponds with the 0.50 per cent retracement level of a price swing observed between March 2022 and July 2023.
Additionally, on a daily scale, the Relative Strength Index (RSI) has exhibited a complex structure (W shape) along with some regular bull divergence on the four-hour chart.
The mentioned range of ₹2,230-2,280 aligns with the S5 Camarilla Pivot, suggesting an attractive buying opportunity.
“It might be prudent to consider buying within the range of ₹2,250-2,280, aiming for an upside target of ₹2,500, while setting a stop loss near ₹2,145 on a daily closing basis,” said Patel.
Also Read: Expert view: Nifty 50 could deliver 16% earnings growth in FY25, and largecap 100 too, says Roop Bhootra of Anand Rathi
Orient Cement | LTP: ₹195.80 | Target price: ₹225 | Stop loss: ₹179 | Upside potential: 15%
From the level of ₹293, Orient Cement encountered a notable downturn of almost 103 points or 35 per cent.
After this downturn, Orient Cement has shown signs of stabilisation around ₹190 for the week, establishing a sustained support base.
It’s noteworthy that this level coincides with the Fibonacci ratio clustering.
Moreover, a 1:1 leg has also been formed around this support zone during this period, further reinforcing a bullish sentiment in the stock.
The analysis of the daily scale RSI indicator reveals a bullish hidden divergence, suggesting a favourable outlook for the stock.
“Investors may find it prudent to consider initiating buy positions within the range of ₹190-198, with an upside objective targeted at ₹225. To manage risk effectively, it’s advisable to set a stop loss at ₹179 on a daily closing basis,” said Patel.
Also Read: Expert View | Market to consolidate in FY25, Nifty 50 upside capped at 24,300: Rahul Ghose of Hedged.in
ABB India | LTP: ₹6,360.85 | Target price: ₹7,000 | Stop loss: ₹5,950 | Upside potential: 10%
In the recent trading session, ABB India exhibited a significant breakout above the R4 camarilla pivot, maintaining its position above this level.
Additionally, daily stochastics have ventured into the overbought territory, suggesting a bullish momentum anticipated in the upcoming days.
The combination of price action persisting above the R4 camarilla pivot and stochastics registering as overbought presents a compelling technical confluence, reinforcing the bullish sentiment surrounding ABB India.
“Investors may consider initiating a buy position within the range of ₹6,250-6,400, targeting an upside potential of ₹7,000, while prudently placing a stop loss near ₹5,950 based on daily closing prices,” said Patel.
Riyank Arora Technical Analyst at Mehta Equities
Grasim Industries | LTP: ₹2,287.30 | Target price: ₹2,400 | Stop loss: ₹2,200 | Upside potential: 5%
The stock has given a good breakout above its all-time high mark of ₹2,268 on its daily charts and managed to give a good closing above the same.
On any pullback, the stock is expected to find support between the ₹2,260 – 2,270 zone, and major support is placed at ₹2,240 mark.
Overall, the risk-reward ratio looks favourable on the buying side with a set stop loss at the ₹2,200 mark for the potential upside targets of ₹2,400 and above.
LIC Housing Finance | LTP: ₹610.95 | Target price: ₹655 | Stop loss: ₹590 | Upside potential: 7%
The stock has given a good breakout above its anchor VWAP resistance mark of ₹606 on the daily charts.
With good signs of trend reversal, the stock is showing positive momentum and strength.
Upside targets of ₹655-660 can be seen in LIC Housing Finance with a strict stop loss to be kept at the ₹590 mark.
Volumes in Thursday’s session were nearly 1.75 times its average 30-day traded volumes, which is again a sign of momentum and strength on the counter.
The stock has given a good breakout above its anchor VWAP resistance mark of ₹1,133.90 on its daily timeframe charts.
With the RSI (14) on daily charts rising and crossing the 60 mark, the overall momentum looks strong on the stock for potential upside targets of ₹1,225 and above with a set stop loss at the ₹1,135 mark.
Volumes in Thursday’s session were almost equivalent to the average 30-day traded volumes on the stock.
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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.
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Published: 01 Apr 2024, 09:39 AM IST
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