Stocks to buy: LIC Housing, ICICI Lombard among 11 stocks that may give 12-62% return in next 6 months, say analysts

Stocks to buy: Nifty 50 has gained over 8 per cent this year, with experts predicting a rise to 25,000 by year-end. Investors are advised to choose stocks with strong fundamentals. Recommendations include LIC Housing, ICICI Lombard, Somany Ceramics, RailTel and MRPL.

Nishant Kumar
First Published25 Jun 2024, 11:46 AM IST
Stocks to buy: Experts caution that investors should not get carried away and invest in stocks with strong fundamentals and sound technical indicators.
Stocks to buy: Experts caution that investors should not get carried away and invest in stocks with strong fundamentals and sound technical indicators.(Agencies)

Stocks to buy: Nifty 50 - the benchmark index of the Indian stock market- has gained over 8 per cent this year so far, despite volatility due to global and domestic factors.

Market experts believe the index will rise to near the 25,000 mark by the year's end due to solid macroeconomic tailwinds, the prospects of above-normal monsoon and the expectations of policy reforms and continuity.

Experts caution that investors should not get carried away and invest in stocks with strong fundamentals and sound technical indicators. Based on the recommendations of several experts, here are 11 stocks that analysts believe may rise 12-62 per cent in the next six months. Take a look:

Also Read: Stocks to buy: Kripashankar Maurya of Choice Broking recommends these 4 fundamental picks for the next 6 months

Aditya Gaggar, Director, Progressive Shares

Ultramarine & Pigments | Previous close: 472 | Target price: 564-670 | Stop loss: 350 | Upside potential: 42%

Ultramarine & Pigments, a part of the Thirumalai group, is one of the leading manufacturers of ultramarine blue pigments.

The company specializes in inorganic pigments, surfactants, and detergents. It retails its own line of products under the brand name ‘OOB’.

The company has two best-in-class manufacturing facilities in Ranipet and Ambattur, Chennai, and an upcoming greenfield project in Naidupet.

On the technical front, a dual pattern breakout - inverted head and shoulder and a symmetrical triangle formation - was spotted in the stock.

The leading oscillator, RSI, replicates price activity by breaking out from the inverted head-and-shoulder formation.

Besides, the trend-following indicator MACD has already given a positive crossover.

A reading of 18 in ADX indicates the beginning of a new trend. A surge in volume confirmed the price breakout.

Somany Ceramics | Previous close: 779.95 | Target price: 1,000-1,260 | Stop loss: 560 | Upside potential: 62%

Somany Ceramics is among the top 15 global giants of the ceramic industry.

It exports its products to over 55 countries across six continents. The company is a complete solution provider in decor solutions with the widest product selection in all categories: ceramic (wall and floor tiles), polished vitrified tiles, glazed vitrified tiles, sanitary ware and bath fittings.

On the technical front, the stock experienced a symmetrical triangle formation breakout and a falling trendline breakout in the RSI. +DMI stands well above –DMI and the ADX. An ADX reading of 20 indicates the beginning of a new trend. MACD has given a positive crossover, and an uptick in volume confirms price activity.

SP Apparels | Previous close: 719.20 | Target price: 800-920 | Stop loss: 540 | Upside potential: 28%

The stock has broken out from a bullish flag and pole formation. The leading oscillator, RSI, has witnessed a falling trendline breakout.

The trend-following indicator, MACD, has given a positive crossover. +DMI has crossed –DMI and ADX, while a reading of 19.6 in ADX indicates the beginning of a new trend.

The price breakout was confirmed with a surge in volume.

"We recommend a buy on the stock at a price near 680 or decline up to 650 with the closing stop loss of 540 for a target of 800-Rs920 with a horizon of 6–9 months," said Gaggar.

Asahi India Glass | Previous close: 709.25 | Target price: 786-894 | Stop loss: 550 | Upside potential: 26%

Asahi India Glass is India’s leading integrated glass and windows solutions company and a dominant player in the automotive, building, and construction segments.

The company’s product solutions, spanning the entire breadth of automotive, building and construction, and consumer glass, are designed to deliver aesthetics and functional benefits.

On the technical front, the stock has broken out of a symmetrical triangle formation. The leading oscillator, RSI, spotted a long-term trendline breakout. The trend following the indicator MACD has already shown a positive crossover. A reading of 17 in ADX indicates the beginning of a new trend. The price breakout was confirmed with a surge in volume.

Ruchit Jain, Lead Research, 5paisa.com

Apollo Hospitals Enterprise | Previous close: 6,257.90 | Target price: 6,700-7,000 | Stop loss: 5,800 | Upside potential: 12%

The stock has gone through a corrective phase in the last four months, but prices have not breached their long-term supports. Also, the RSI on the monthly chart has not seen a negative crossover, and hence, this recent down move just seems to be a corrective phase within an uptrend. The risk-reward ratio seems favourable here as the prices have broken out from falling trendline resistance.

"Investors can buy the stock in the range of 6,250-6,200 for potential targets of 6,700 and 7,000. The stop loss on long positions should be placed below 5,800," said Jain.

ICICI Lombard General Insurance Company | Previous close: 1,771.75 | Target price: 1,900-2,050 | Stop loss: 1,600 | Upside potential: 16%

The stock has been forming a ‘higher top, higher bottom’ formation, thus in an uptrend. Recently, the stock has seen price moves supported by good volumes, while the RSI oscillator also hints at positive momentum. Within the listed insurance stocks, the stock has shown relative outperformance recently, and thus, the uptrend could continue.

"Investors can buy the stock in the range of 1,750-1,700 for potential targets of 1,900 and 2,050. The stop loss on long positions should be placed below 1,600," said Jain.

LIC Housing Finance | Previous close: 734.75 | Target price: 840 | Stop loss: 670 | Upside potential: 14%

The stock has recently given a breakout above its swing high resistance with high volumes, which is an indication of a continuation of the uptrend post-consolidation. The volumes on up-move are good while the RSI on the weekly charts are hinting at positivity for the medium term.

"Investors can buy the stock in the range of 730-720 with a potential target of 840. The stop loss on long positions should be placed below 670," said Jain.

RailTel Corporation of India | Previous close: 495.20 | Target price: 600 | Stop loss: 430 | Upside potential: 21%

Railway stocks have seen an uptrend over the last year, and after the recent consolidation phase, the price volume action hints at a resumption of the uptrend. RailTel has seen a price breakout with high volumes in the last week; hence, the uptrend is expected to continue.

"Investors can buy the stock in the range of 490-480 for a potential target of 600. The stop loss on long positions should be placed below 430," said Jain.

Mangalore Refinery and Petrochemicals (MRPL) | Previous close: 224.65 | Target price: 260 | Stop loss: 205 | Upside potential: 16%

The stock has been consolidating in a range for the last few months and is now trading around its 100 DEMA support. In this corrective phase, the stock has traded above its important supports while the volumes were low during price corrections. The chart structure indicates the possibility of a resumption of the uptrend from current price levels, and hence, the risk-reward ratio is favourable for forming new long positions.

"Investors can buy the stock in the range of 225-220 for a potential target of 260. The stop loss on long positions should be placed below 205," said Jain.

Foram Chheda, CMT, and the founder of ChartAnalytics.co.in

Kalyan Jewellers India | Previous close: 445.40 | Target price: 510 | Stop loss: 420 | Upside potential: 15%

Kalyan Jewellers consolidated within a range of 375-450 for over two months, consistently rebounding from the lower end near the 100-day moving average (MA) support.

Recently, the stock broke out of this range with a significant volume increase, indicating bullishness. The RSI, a lead indicator, also broke above its downward-sloping trendline, confirming the bullish trend.

"Buying near the breakout levels is advisable, with a potential target of 510. Consider exiting if the price falls below 420," said Chheda.

Texmaco Rail & Engineering | Previous close: 217 | Target price: 245 | Stop loss: 200 | Upside potential: 13%

After reaching 231 in February, the stock declined to 142, just above the 200-day MA, then resumed its uptrend. It moved above the 50-day and 100-day MAs, signalling bullish intermediate and short-term trends.

Recently, it faced resistance near the downward-sloping trendline and consolidated for a day. The stock is now breaking out of this long consolidation, forming a symmetrical triangle pattern, with the breakout supported by increased volume, reinforcing bullish sentiment.

Read all market-related news here

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.

Also Read | Stocks to buy: These 10 stocks may rise 8-17% in next 3-4 weeks, say analysts
Also Read | Choice Broking recommends these 4 stocks for the next 6 months; do you own any?
Also Read | Stocks to buy: Navin Fluorine, SRF among top 5 chemical stock picks
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₹295 Cr

$23 B

$65 M

3.36%

$65.47 B

$2.5 M

₹80 Cr

1.4%

₹773 Cr

₹2,705 Cr

₹1 Cr

₹14,370 Cr

₹5.74 T

First Published:25 Jun 2024, 11:46 AM IST
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