BackStocks to buy: HUL, Concor, Axis Bank, Sun Pharma among nine stocks that analysts recommend buying for short term
Stocks to buy for short term: Analysts believe market sentiment is positive but investors should bet on only quality stocks to maximise their gains.
PremiumEquity benchmark Nifty50 rose about a half-a-per cent in morning trade on May 15 to reclaim 18,400 levels with decent gains in most sectors.
The index hit its all-time high of 18,887.60 on December 1, 2022. Analysts believe if the uptrend sustains, the benchmark index can hit an all-time high level by the next month.
Market sentiment is positive on healthy domestic macroeconomic indicators, in-line March quarter numbers and sustained foreign capital inflow. The expectation of an end to aggressive rate hikes is another factor that is working in favour of the market.
Analysts recommend buying quality stocks in this market to maximise gains. Based on the recommendations of several analysts, here are nine stocks that can give healthy returns in the next 3-4 weeks.
Sumeet Bagadia, Executive Director at Choice Broking
Hindustan Unilever (HUL) | Target price: ₹2,760 | Stop loss: ₹2,500
Hindustan Unilever is currently trading near ₹2,645, indicating a higher high higher low formation on the daily chart.
RSI indicator's current trading range of 68.48 levels is also showing strength. The stock is currently trading above all of the key moving averages.
The Bollinger band continues expanding on the weekly chart, with the price trading above the band's centre line, indicating the stock's strength.
A small resistance is placed near ₹2,650 levels; if the stock surpasses this level, it may move towards ₹2,760 levels and higher.
"With a medium-term target price of ₹2,760, we advise purchasing Hindustan Unilever at the current market price. It can also be accumulated close to ₹2,570 levels. If the price closes below ₹2,500, our analysis will be invalid," said the analyst.
Polycab India | Target price: ₹3,620 | Stop loss: ₹3,200
The stock is currently trading above all of the important moving averages. The stock has a solid support foundation near ₹3,200.
The stock can be bought on every drop because the breakout is supported by massive volumes. A weekly closing at all-time high levels always suggests that the stock is strong.
After a squeeze, the Bollinger band continues to grow on the weekly chart, with the price trading near the band's upper line.
A break of the higher line on the band will bring the stock upward.
"We recommend buying Polycab stock at the current market price with a medium-term target of ₹3,620. It can also be accumulated near ₹3,320. If the price closes below ₹3,200, our analysis will be invalid," said the analyst.
Cipla | Target price: ₹980-1005 | Stop loss: ₹900
Cipla has been demonstrating a consistent upward trend within a positive rising channel. This bullish movement is further supported by its trading position above its short-term moving averages of 20 and 50, indicating a favourable short-term momentum.
Additionally, the Relative Strength Index (RSI) stands at 61 and is trending upward, suggesting increasing buying pressure and positive investor sentiment.
Furthermore, Cipla has recently surpassed a significant trendline resistance, which had been acting as a formidable supply zone since October of the previous year. This breakout is a strong indication of a potential upward surge in the stock's price.
"Considering the aforementioned technical indicators and breakout, it appears to be an opportune time to consider purchasing Cipla at its current market price for the target range of ₹980-1,005. Our Views will be negated below ₹900," said the analyst.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Engineers India | Buying range: ₹95-100 | Target price: ₹125 | Stop loss: ₹83
For the last three years, this counter has been in a consolidation mode, with a trading range of ₹55-90.
Last week, it gave a clean breakout from the mentioned trading range and quite comfortably traded above it. Additionally, the current price action on a weekly scale is trading above William Alligator (trend-following indicator) which is a positive sign.
Container Corporation of India (Concor) | Buying range: ₹630-640 | Target price: ₹700 | Stop loss: ₹599
After making the top of ₹828.50 on November 9, 2022, it started making lower tops and lower bottom structures which resulted in a 23 per cent cut in price. From Feb 2023 to March 2023, it made bullish divergence on a daily scale - the price was making lower lows, but KST (Know Sure Thing) was making higher lows since then the said counter has reversed nicely.
At the current juncture, price action is above William alligator (trend following indicator) which is echoing towards further upside in the counter.
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Jubilant Pharmova | Buying range: ₹338-342 | Target price: ₹420| Stop loss: ₹299
Between June 2022 and March 2023, this stock 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 RSI was making higher lows.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
Axis Bank | Target price: ₹980 | Stop loss: ₹860
The stock has taken support near ₹850, making a higher bottom formation pattern on the daily chart. A gradual rise has improved the bias making the chart look attractive for further upside movement in the coming days.
The RSI also indicated a trend reversal to signal a buy and with decent volume participation.
Tata Power | Target price: ₹235 | Stop loss: ₹190
The stock is coming out of a downward channel pattern with a positive candle. The stock has witnessed decent erosion from ₹250 levels, bottoming out near ₹180 levels, gradually indicating improvement in the bias.
Currently, a positive candle pattern indicates strength. The stock has the potential to rise further in the coming days.
With the RSI also going strong, it has indicated a trend reversal to signal a buy.
"We suggest buying this stock for a short-term upside target of ₹217 (200 DMA) and a long-term target of ₹235, keeping the stop loss at ₹190," said the analyst.
Sun Pharma | Target price: ₹1,040 | Stop loss: ₹925
The stock has more or less made a double bottom formation on the daily chart taking support near ₹945 and has shown signs of reversal to improve the bias.
The indicators are all favourable with the RSI indicating a reversal to anticipate for a further rise in the coming days.
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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