Stocks to buy: Hindalco, L&T among eight stocks analysts suggest buying for short term; do you own any?
4 min read 29 May 2023, 12:14 PM ISTNifty rose about 4 per cent in April and is over two per cent higher in May so far. As the biggest shoer term concern of the US debt ceiling negotiations is easing, the market is expected to rally further, eyeing its all-time high level.
PremiumEquity barometers the Sensex and the Nifty look set to end the month of May on a positive note, extending their winning run into the third consecutive month, thanks to a healthy domestic macro environment, upbeat March quarter numbers and sustained foreign capital inflow.
Nifty rose about 4 per cent in April and is over two per cent higher in May so far. As the biggest shoer term concern of the US debt ceiling negotiations is easing, the market is expected to rally further, eyeing its all-time high level.
The focus will shift now to the US FOMC meet on June 13-14 and a pause on rate hikes will be a shot in the arm for the market.
Still, analysts advise investors and traders should be cautious and follow a stock-specific approach in this market to maximise gains and minimise losses.
Based on the recommendations of several analysts, here are eight stocks that can give healthy returns in the next three to four weeks. Take a look:
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Hindalco Industries | Buying range: ₹410-415 | Target price: ₹445 | Stop loss: ₹395
This counter is off nearly 20 per cent from its 52-week high of ₹504 which it hit on January 18, 2023 on BSE. At the current juncture, multiple bullish candlesticks patterns like Hammer and Doji have emerged while the daily RSI (Relative Strength Index) has reversed from 40 levels on a daily scale which is indicating further upside in the counter.
"One can buy in small tranches around ₹410-415 and another around ₹403-405 for an upside target of ₹445, keeping a stop loss ₹395," said Patel.
Firstsource Solutions | Buying range: ₹125-135 | Target price: ₹155 | Stop loss: ₹114
Since last year, this counter has been consolidating in the range of ₹100-120 approximately. Recently, it gave a clean breakout along with heavy volume which hints towards further upside in the counter.
Additionally, on a weekly scale, MACD is displaying a bullish crossover exactly above the zero line which is a sign of further bullish momentum.
Jubilant Pharmova | Buying range: ₹355-365 | Target price: ₹420 | Stop loss: ₹320
After making a top of ₹925 in May 2021, the stock nosedived, resulting in a 61 per cent cut in price. Between June 2022 to March 2023, it made a solid base near ₹300 levels and has reversed nicely from those levels.
Additionally, it has made a bullish bat pattern on a weekly scale along with bullish divergence i.e. price was making lower lows and MACD was making higher lows.
Sumeet Bagadia, Executive Director, Choice Broking
IDFC First Bank | Target price: ₹76 | Stop loss: ₹66
The stock has been making higher highs and higher lows for the last three days. It is trading above all important moving averages. On the weekly chart, it has formed an inverted head and shoulder pattern which indicates a strong bullish trend.
"Any dip in the stock can be a buying opportunity. We can witness a strong volume on daily charts which indicates strength in the stock. We expect the stock to move to 76 levels and above," said Bagadia.
Hindustan Copper | Target price: ₹116-120 | Stop loss: ₹101
Hindustan Copper is expected to break out around ₹108. It has surpassed the 20-day, 50-day, and 100-day exponential moving averages (EMAs), indicating positive momentum.
Resistance levels at ₹107.5, coinciding with the 200-day EMA, need to be overcome for further upward movement. Once these levels are breached, a potential rise to ₹116-120 is possible. However, a consolidation phase may occur until the stock breaks ₹107.
"The RSI at 60 and the stock's support along an upward trend line suggest a favourable outlook. Monitoring the price action is crucial, with a break below ₹101 invalidating the positive view," said the analyst.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
Borosil Renewables | Target price: ₹587 | Stop loss: ₹468
The stock has witnessed a decent rise from the bottom made near ₹380 and recently after a consolidation near the 200 daily moving average, has shown the strength to carry on the momentum further ahead.
Currently, a dip and taking support near the 50EMA level of ₹470 has made the chart attractive and there is an opportunity for fresh buying.
The RSI also is well-placed after a short correction indicating a trend reversal showing strength and has signalled a buy, anticipating further upward movement in the coming days.
SRF | Target price: ₹2,730 | Stop loss: ₹2,370
The stock has overall indicated an ascending channel pattern on the daily chart, currently witnessing a pullback from the 200DMA level of ₹2,400 and improving the bias.
The RSI also which is well-placed has indicated a trend reversal showing strength and has signalled a buy anticipating further upward movement in the coming days.
Larsen & Toubro (L&T) | Target price: ₹2,430 | Stop loss: ₹2,150
The stock after the short correction from ₹2,400 level, has once again arrived at the support zone near ₹2,170 level of the ascending channel pattern on the daily chart and has indicated a pullback with a positive candle, improving the bias.
The RSI also indicates a trend reversal to justify the positive move and has signalled a buy.
"With the chart looking good, we suggest buying this stock for an upside target of ₹2,430 keeping the stop loss of ₹2,150," said the analyst.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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