Stocks to buy: ITC, Kotak Bank, Bharti Airtel among 10 stocks analysts believe may rise 9-13% in next 3-4 weeks

After rising about half a per cent last week, domestic market benchmark Nifty 50 fell over half a per cent in intraday trade on Monday, March 11, with some of the banking heavyweights, including HDFC Bank, ICICI Bank and SBI, among the top drags.

The Nifty 50 formed a small bullish candle last week and technical experts expect the benchmark index to trade in a range this week.

According to Axis Securities, if the Nifty 50 crosses and sustains above the 22,600 level, it would witness buying, leading the index towards the 22,800-22,900 levels. However, if the index breaks below the 22,400 level, it would witness selling, taking the index towards the 22,300-22,200 range.

For the week, Axis Securities expects the Nifty 50 to trade in the range of 22,900-22,200 with a positive bias.

The market will react to global cues and macro numbers in the near term and there could be bouts of volatility due to this. Experts recommend buying technically and fundamentally sound stocks at the current juncture. Based on the recommendations of several experts, below are 10 stocks that one can consider buying for the next three to four weeks. Take a look:

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

ITC | Last traded price (LTP): ₹413.35 | Buying range: ₹405-415 | Target price: ₹451 | Stop loss: ₹389 | Upside potential: 9%

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

However, in the subsequent 18 trading sessions, the stock showed stability by avoiding further declines and instead consolidated within a range of ₹400-416. 

In the previous trading session, a notable buying interest was observed 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 price zone of ₹400-416. 

This zone also coincides with the 0.382 per cent retracement level of a price swing 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.

Kotak Mahindra Bank | LTP: ₹1748.15 | Buying range: ₹1,725-1,750 | Target price: ₹1,910 | Stop loss: ₹1,650 | Upside potential: 9%

Last month, Kotak Mahindra Bank established a prolonged bottom around the 1.13 harmonic ratio. 

A bullish AB=CD pattern has also emerged near the aforementioned ratio, providing further bullish confirmation. On the indicator front, there is a bullish divergence observed on the daily stochastic, indicating a positive outlook for the stock.

PVR Inox | LTP: ₹1,415.30 | Buying range: ₹1,400-1,425 | Target price: ₹1,560 | Stop loss: ₹1,345 | Upside potential: 10%

After reaching the level of ₹1,830 on December 18, 2023, PVR Inox underwent a substantial decline of almost 483 points, representing approximately a 26 per cent decrease. 

Over the past 18 trading sessions, PVR Inox avoided further declines and has instead consolidated within the ₹1,350-1,415 range. 

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

From a technical perspective, the stock formed a bullish bat pattern on the daily chart within the price range of ₹1,350-1,415 which corresponds to a 0.382 per cent retracement level of a price swing that occurred between May 18, 2020, and August 1, 2022, on a weekly scale. 

On the indicator front, the daily Relative Strength Index (RSI) has formed a complex structure resembling a 'W shape' below the 30 level, indicating a promising buying opportunity.

Also Read: Rally in PSU stocks flawed, book profit, says Kotak

Axis Securities

Bharti Airtel | LTP: ₹1,199.15 | Buying range: ₹1,195-1,171 | Target price: ₹1,285-1,330 | Stop loss: ₹1,132 | Upside potential: 11%

Bharti Airtel demonstrates a bullish breakout above the small falling channel pattern at ₹1,150 on the weekly chart, suggesting a possible continuation of the medium-term uptrend. 

The breakout is confirmed by a strong bullish candle, indicating a positive bias in stock price movement. 

It maintains support above the 23 per cent Fibonacci retracement level of the rally from ₹735 to ₹1,200 at ₹1,098, forming a medium-term base for further potential upward movement. 

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

Bank of India | LTP: ₹146.15 | Buying range: ₹143-140 | Target price: ₹156-164 | Stop loss: ₹134 | Upside potential: 12%

Bank of India demonstrates a bullish breakout above the descending triangular' pattern at ₹140 on the weekly chart, signalling the potential continuation of a post-consolidation rally. 

It maintains support above the 38 per cent Fibonacci retracement level of the rally from ₹86 to ₹156 at ₹129, forming a medium-term base for further potential upward movement. 

The stock is exhibiting a pattern of higher high-low formations on the weekly chart and holding above the upward-sloping trendline, signalling positive bias. 

The weekly strength indicator RSI is in a bullish mode indicating a positive bias.

Also Read: SBI share price falls 2% on weak sentiment post-electoral bond case hearing in Supreme Court

Bharat Electronics (BEL) | LTP: ₹215.40 | Buying range: ₹213-208 | Target price: ₹233-242 | Stop loss: ₹199 | Upside potential: 12%

On the weekly chart, BEL has broken out of a small consolidation zone between ₹197-177, accompanied by a robust bullish candle at the end of February. 

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

The stock is trending within a medium-rising channel, having recently found support at the lower band and is now poised to move towards the upper band of the channel. 

The weekly strength indicator RSI is in a bullish mode and is holding above its reference line indicating a positive bias. It is forming a higher high-low confirming upward price moment.

Pidilite Industries | LTP: ₹2,865.30 | Buying range: ₹2,850-2,794 | Target price: ₹3,096-3,210 | Stop loss: ₹2,685 | Upside potential: 12%

On the weekly chart, Pidilite Industries has broken out of a two-and-a-half-year consolidation phase, marked by a symmetrical triangular pattern at the ₹2,800 level, implying the continuation of the medium-term uptrend. 

An increase in volume activity during the breakout suggests a surge in participation, signalling a strong interest in the stock's upward movement. 

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

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Riyank Arora, Technical Analyst, Mehta Equities

Cummins India | LTP: ₹2,784.50 | Target price: ₹3,000 | Stop loss: ₹2,780 | Upside potential: 8%

"The stock is showing good signs of momentum and strength. The overall trend looks positive, and the stock is poised for a good upside move towards ₹3,000 and above with a strict stop loss set at ₹2,780. A strong volume pick-up indicates good signs of momentum in the stock," said Arora.

Hindustan Petroleum Corporation (HPCL) | LTP: ₹508.70 | Target price: ₹575 | Stop loss: ₹485 | Upside potential: 13%

The stock is re-testing its breakout mark of ₹500 on its weekly charts and indicating good signs of momentum and strength. 

"With the overall trend being positive and the stock witnessing good volume pick-up, it seems poised for a good up-move towards ₹550 and ₹575 in a spree of momentum rally. A set stop loss at ₹485 should be kept to manage risk well," said Arora.

Also Read: Frothy valuations: Reality check for Indian investors

Apollo Hospitals Enterprises | LTP: ₹6,047.20 | Target price: ₹6,500 - 6,600 | Stop loss: ₹5,940 | Upside potential: 9%

"The stock has touched its trendline support mark of ₹6,075-6,100. The overall trend is positive and we might see the stock eventually heading higher towards ₹6,500 and 6,660. A strict stop loss at ₹5,940 should be kept on the same to manage risk well," said Arora.

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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.