Stocks to buy: ITC, Cochin Shipyard, Chalet Hotels among 12 stocks that can rise 6-22% in next 3-4 weeks, say experts

Last week, equity benchmark Nifty 50 ended over 2 per cent lower as concerns over the rich valuation of the market and uncertainty around the interest rate trajectory in the US kept investors nervous.

Domestic market sentiment continues to be cautious ahead of the US Federal Reserve outcome on Wednesday. The Fed is expected to keep rates unchanged but the market's focus would be on what the central bank thinks about inflation and growth.

Also Read: Indian stock market remains attractive, say experts, suggest stocks to buy for long term

"The week ahead, the global central bank’s monetary policy decision will get investors’ attention. The US Fed, Bank of Japan, and Bank of England will unveil their rate decisions. There is uncertainty over Fed rate cuts due to an increase in the US unemployment rate and higher than expected US inflation," said Vinod Nair, Head of Research, Geojit Financial Services.

The domestic market is expected to remain volatile in the short term. Experts recommend buying technically and fundamentally sound stocks at the current juncture. Based on the recommendations of several experts, below are 12 stocks that one can consider buying for the next three to four weeks. Take a look:

Axis Securities

HEG | Last traded price (LTP): ₹1,882.15 | Buying range: ₹1,870-1,834 | Target price: ₹2,160-2,220 | Stop loss: ₹1,700 | Upside potential: 18%

HEG demonstrates a bullish breakout above the falling channel pattern at ₹1,850 on the weekly chart, signalling a positive bias.

Volume activity diminished during the pattern formation and surged at the breakout, signalling heightened market participation during the breakout phase.

The stock closing above the daily upper Bollinger band is a buy signal for the short term as well.

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

Also Read: Stocks to buy: These 5 stocks could jump up to 40% in 1-2 years, says Pankaj Pandey of ICICI Direct

Cochin Shipyard | LTP: ₹890.45 | Buying range: ₹880-864 | Target price: ₹1,045-1,085 | Stop loss: ₹785 | Upside potential: 22%

On the daily chart, Cochin Shipyard has broken out of a falling channel pattern, marked by a strong bullish candle at ₹880, suggesting a reversal following profit booking.

The stock continues its upward momentum after the breakout and is expected to sustain its momentum.

It maintains support above the 61.8 per cent Fibonacci retracement level of the rally from ₹600-945 at 733, forming a short-term base for further potential upward movement.

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

HDFC Life Insurance | LTP: ₹632.35 | Buying range: ₹625-613 | Target price: ₹665-685 | Stop loss: ₹597 | Upside potential: 8%

On the daily chart, HDFC Life has broken out of a consolidation phase, marked by a rounded bottom' pattern at the ₹629 level, indicating a positive bias.

Heightened volume activity during the breakout indicates increased participation, reflecting substantial interest in the stock's upward momentum.

The stock is maintaining its position above the 20, 50, 100, and 200 simple moving averages (SMA), indicating a positive bias in its price trend.

The daily Relative Strength Index (RSI) is in bullish mode and holding above its reference line, suggesting a positive bias in the stock.

Also Read: L&T stock: L&T share price up 63% in last one year; is it still buy-worthy? Experts weigh in

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

ITC | LTP: ₹419.10 | Target price: ₹475 | Stop loss: ₹390 | Upside potential: 13%

After reaching the level near ₹475 on January 4, 2024, ITC experienced a significant decline of approximately 75 points, or nearly 16 per cent. 

However, in the subsequent 18 trading sessions, ITC showed stability by avoiding further declines, consolidating within a range of ₹400-416. 

In the previous trading session, there was notable buying interest at lower levels, accompanied by substantial trading volume. 

From a technical standpoint, there is the formation of a bullish AB=CD pattern on the daily chart of ITC within the zone of ₹400-416. 

Interestingly, this zone also coincides with the 0.382 per cent retracement level of a price swing that occurred between January 2023 and July 2023. 

Additionally, it formed a complex structure on the daily Relative Strength Index (RSI) indicator, resembling a 'W' shape below the 30 level, which suggests a potentially lucrative buying opportunity.

"One can buy the stock in the range of ₹415-425 with an upside target of ₹475 and a stop loss should be placed near ₹390 on a daily close basis," said Patel.

Britannia Industries | LTP: ₹4,974.20 | Target price: ₹5,250 | Stop loss: ₹4,790 | Upside potential: 6%

Over the past couple of months, Britannia Industries has stabilised around the ₹4,800 level, forming a prolonged support base. 

This level coincides with the 200-day exponential moving average (DEMA) and represents a 50 per cent retracement of its previous upward movement from November 2023 to December 2023, as depicted in the provided chart. 

Additionally, a bullish AB=CD pattern has emerged near the ₹4,800 level, further confirming positive market sentiment. 

The daily stochastic indicator indicates a bullish divergence, suggesting a favourable outlook for the stock. 

"Investors may consider initiating buy positions within the range of ₹4,950-4,980, targeting an upside objective of ₹5,250, with a stop loss set at ₹4,790 on a daily closing basis," Patel said.

Aegis Logistics | LTP: ₹381.25 | Target price: ₹430 | Stop loss: ₹355 | Upside potential: 13%

The stock has found support at the 200-day exponential moving average (DEMA). 

On the hourly chart, a bullish bat pattern was formed in the range of ₹360-370 levels, coinciding with the vicinity of the 200 DEMA. 

On the indicator front, the hourly Relative Strength Index (RSI) has displayed a complex structure near the oversold zone, indicating a bullish stance.

"Given these technical indicators, investors may consider buying in the zone of ₹375-385, with an upside target set at ₹430. A prudent stop-loss strategy would involve placing it near ₹355 on a daily closing basis," Patel said.

Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher

Garden Reach Shipbuilders & Engineers | LTP: ₹760.75 | Target price: ₹855 | Stop loss: ₹740 | Upside potential: 12%

The stock witnessed a steep fall recently from ₹850 and took support near ₹675 with a pullback witnessed. 

Moving past the 200-period moving average (MA) level of ₹756 has slightly improved the bias to indicate further rise in the coming days. 

The RSI also after arriving near the highly oversold zone has halted the slide and has indicated a trend reversal to signal a buy.

"With the chart looking good, we suggest buying the stock for the next targets of ₹820 and ₹855 levels in the coming days keeping a strict stop loss of ₹740," said Koothupalakkal.

Chalet Hotels | LTP: ₹735.25 | Target price: ₹850 | Stop loss: ₹690 | Upside potential: 16%

The stock witnessed a steady fall in recent times from ₹890 level and took support near the important 100-period MA of ₹690. 

It has indicated a pullback to improve the bias and a decisive breach above the 50EMA level of ₹760 shall also bring conviction for further upward journey. 

The RSI has halted near the highly oversold zone and indicated a trend reversal to signal a buy.

"With the chart looking attractive, we suggest buying the stock for the next targets of ₹800 and ₹850 levels keeping the strict stop loss of ₹690 level," said Koothupalakkal.

Gujarat State Fertilizers & Chemicals (GSFC) | LTP: ₹208.65 | Target price: ₹254 | Stop loss: ₹190

The stock has witnessed a decent erosion in the last two months from the level of ₹322. 

Currently, it is showing signs of bottoming out near the ₹187-190 zone. 

A decent pullback, moving past the significant 200 period MA of ₹200, has improved the bias and a further rise is anticipated in the coming days. 

The RSI has also corrected quite significantly arriving at the highly oversold zone and is currently indicating a trend reversal.

"With the favourable risk-reward ratio and chart looking attractive, we suggest buying the stock for the next targets of ₹230 and ₹254 levels keeping the strict stop loss of ₹190 level," Koothupalakkal said.

Riyank Arora, Technical Analyst, Mehta Equities

Action Construction Equipment (ACE) | LTP: ₹1,241.10 | Target price: ₹1,330 and ₹1,420 | Stop loss: ₹1,190 | Upside potential: 14%

The stock has re-tested its 'Anchored VWAP' support mark of ₹1,220 and held well above the same. 

It has a minor resistance near the ₹1,330.00 mark, above which the next hurdle would be somewhere near the ₹1,420 level. 

On the hourly charts, it has formed a potential higher low at around ₹1,200 level. 

"The risk-reward looks favourable on the buy side with a stop loss at ₹1,190 for potential targets of ₹1,330 and ₹1,420," said Arora.

Sandhar Technologies | LTP: ₹485.30 | Target price: ₹550 | Stop loss: ₹465 | Upside potential: 13%

The stock saw a good retest of the 'Anchored VWAP' support level at ₹480 on its daily charts. 

Overall the bullish trend is expected to remain intact. 

"At the current market price, the downside risk is limited, and it is advisable to follow a strict stop loss at ₹465 for the potential targets of ₹550 and higher," Arora said.

Shriram Properties | LTP: ₹105.90 | Target price: ₹120 | Stop loss: ₹99 | Upside potential: 13%

The stock is trading around its significant support level of ₹100 on the hourly charts. 

The stock is giving an attractive buying opportunity based on its daily and weekly chart analysis. 

"The risk-reward ratio is looking favourable for buying at current levels, with a strict stop loss at ₹99 for potential targets of ₹120 and beyond," Arora said.

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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.