Stocks to buy: HAL, M&M, RIL among six stocks to buy for the short term
3 min read 02 May 2023, 09:44 AM ISTThe market is witnessing positive momentum however, the short term outlook remains hazy. Analysts recommend following a stock-specific approach in this market. Based on the recommendations of several analysts, here are six stocks that look attractive on technical charts. Take a look.
PremiumFrontline index Nifty opened 60 points higher at 18,124.80 on May 2 despite mixed global cues. Investors appear to be positive about the domestic economy while the recent March quarter numbers, too, have offered some comfort.
Prashanth Tapse, Senior VP (Research) of Mehta Equities observed that the robust monthly GST numbers, which hit a new all-time high in terms of collections in April, indicating that the domestic economy continues to be on strong footing despite global macroeconomic challenges, have added to the recent optimism.
Tapse, however, pointed out that some amount of caution could prevail after the last week's upsurge and it wouldn't be surprising if profit-taking comes into play.
"Technically, the Nifty options data suggests Nifty is likely to be in a trading range of 17,800-18,500 zone," said Tapse.
Day trading guide for today: Six buy or sell stocks for Tuesday — 2nd May
Analysts recommend following a stock-specific approach in the market as the headwinds in terms of rate hikes, looming recession in the US and global economic slowdown persist.
Based on the recommendations of several analysts, here are six stocks that look attractive on technical charts. Analysts say one can buy these stocks for the next 3-4 weeks:
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
Hindustan Aeronautics (HAL) | Target price: ₹3,100 | Stop loss: ₹2,820
HAL has been in consolidation for quite some time in the range of ₹2,760–2,850 levels and has currently indicated a positive bullish candle with good volume participation, implying strength and potential for further upside movement.
The RSI indicator is indicating a reversal and has made the chart look attractive.
"With the stock overall in a rising trend, we anticipate a decent rally in the coming days. We suggest buying and accumulating this stock for an upside target of ₹3,100 levels, keeping the stop loss at ₹2,820," said Parekh.
Mahindra and Mahindra (M&M) | Target price: ₹1,360 | Stop loss: ₹1,180
The stock, after the decent consolidation, has finally indicated a bullish positive candle, moving past the 50-EMA (exponential moving average) level of ₹1,222, improving the bias for a further rise in the coming days. The RSI is also well placed and has much upside potential to carry on the momentum still further ahead.
"With the chart looking attractive, we recommend buying this stock for an upside target of ₹1,360, keeping the stop loss of ₹1,180," said the analyst.
BSE | Target price: ₹585 | Stop loss: ₹495
The stock, after the huge erosion, bottomed out near ₹405. A decent pullback has improved the bias and after the consolidation, the stock has picked up well with positive bullish candle patterns.
"We anticipate a further rise of the stock from here on with the next initial target of ₹560 and thereafter ₹585 in the coming days. The RSI indicator has indicated strength and can carry on with the momentum still further ahead," said the analyst.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Wipro | Buying range: 384-387 | Target price: ₹420 | Stop loss: ₹365
Recently the stock saw a bullish divergence on a daily scale; the price was making lower lows, but RSI was making higher lows. Since then, the counter has reversed nicely from the lower level of 360 and is currently trading well above its previous swing high of ₹379.
"One can buy Wipro here with an upside of ₹420 and the stop loss would be ₹365 on a daily close basis," said the analyst.
MOIL | Buying range: ₹153-156 | Target price: ₹170 | Stop loss: ₹148
In the previous trading session, MOIL sustained above its crucial support of ₹150. Additionally, it is trading above William Alligator on a daily scale which is looking lucrative. Daily RSI has rebounded from 50 levels thus making it a buy candidate.
"One can buy in the range of ₹155-157 and the target is ₹170 and the stop-loss would be ₹148 on a daily close," said Patel.
Reliance Industries (RIL) | Buying range: ₹2,415-2,425 | Target price: ₹2,500 | Stop loss: ₹2,350
Since nearly last month, this counter has been witnessing a nice up move from ₹2,200 to ₹2,400 levels. On a daily scale, it has sustained above William's alligator (trend following indicator) which is looking lucrative.
"One can accumulate Reliance Industries in the range of ₹2,415-2,425 for an upside target of ₹2,500 and the stop loss would be ₹2,350 on a daily close basis," said Patel.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
