Stocks to buy: NHPC, SJVN among 8 stocks that may rise 6-16% in the next 3-4 weeks, say analysts; do you own any?

The Indian stock market benchmark Nifty 50 jumped almost 4 per cent to its record high of 23,338.70 in morning trade on Monday, June 3, after exit polls predicted the BJP-led NDA may retain power at the Centre with a strong majority.

According to experts, the prospects of political stability and expectations of policy continuity amid strong macro fundamentals will keep the market on an upward trajectory in the medium to long term. Since the Indian stock market is at a record high, there could be some profit booking after the election outcome aligned with the exit polls result.

Also Read: Poll of Polls: 10 exit polls predict 350+ seats for BJP-led NDA, three 400+; INDIA bloc to get less than 200 seats

Osho Krishnan, a senior technical ad derivatives analyst at Angel One, pointed out that the exit poll outcome cheered market sentiments, skyrocketing key indices to their respective lifetime high levels. However, Implied volatility, a measure of market uncertainty, continues to hover at an elevated zone.

"Given the eventful week with the election outcome and RBI MPC result, it's best to take a cautious approach and maintain a practical view. The overall tone seems to support the bulls, and we expect dips to bode well in the near future. Support for Nifty 50 is at 23,100-23,000, while for Nifty Bank, support is at 50,000-49,500," said Krishnan.

Also Read: Exit poll 2024 frenzy could be followed by profit booking after results, focus to shift on Budget, say experts

While the market is at a record high, experts suggest one should not get carried away and bet on fundamentally and technically sound stocks. Based on the recommendations of several experts, here are eight stocks that can rise 6-16 per cent in the next 3-4 weeks. Take a look:

Also Read: Exit Poll 2024: How to trade keeping Lok Sabha Election results in mind?

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

NHPC | Previous close: ₹107.25 | Buying range: ₹105-108 | Target price: ₹120 | Stop loss: ₹99 | Upside potential: 12%

Since May 28 this year, NHPC has been trading within a consolidation range of approximately ₹99 to ₹104. 

Recently, it has broken out of this consolidation range, surpassing the upper limit of ₹104 and maintaining its position above this level. 

This breakout is a significant event as it suggests a potential shift in market sentiment and the beginning of a new upward trend. 

Additionally, technical indicators provide further bullish signals; the daily stochastics used to identify overbought or oversold conditions have shown a bullish crossover near the oversold zone. 

A bullish crossover happens when the faster stochastic line crosses above the slower line, suggesting a potential increase in buying pressure.

Also Read: Stock market today: Nifty 50, Sensex hit all-time highs. Exit polls 2024 to GDP data - 4 reasons why market is soaring

SJVN | Previous close: ₹139.70 | Buying range: ₹138-140 | Target price: ₹155 | Stop loss: ₹131 | Upside potential: 11%

After peaking near the ₹153 mark on May 22, 2024, SJVN experienced a significant downturn, with a decline of approximately 22 points, equating to roughly 14-15 per cent. 

However, in the subsequent two trading sessions, it demonstrated resilience by avoiding further drops and instead took on the middle Bollinger band. 

In the prior trading session, notable buying activity was observed at lower price levels, particularly from the middle Bollinger band, suggesting investor interest in purchasing the stock at these levels. 

From a technical perspective, the daily DMI indicator has given a bull cross, indicating a potential shift in momentum and presenting an attractive buying opportunity.

Also Read: Exit Polls 2024: Modi-led NDA poised for third term with 350-370 seats; what should investors do next?

Campus Activewear | Previous close: ₹277.35 | Buying range: ₹274-278 | Target price: ₹310 | Stop loss: ₹257 | Upside potential: 12%

After consolidating in the range of ₹242-266, Campus Activewear successfully broke out of a bearish trendline that had persisted for eight months. 

The stock comfortably maintains its position above this trendline, indicating a strong upward movement. From an indicator perspective, the weekly DMI has given a bull cross, a positive sign for potential gains.

Axis Securities

Coromandel International | Previous close: ₹1,307.30 | Buying range: ₹1,300-1,274 | Target price: ₹1,417-1,485 | Stop loss: ₹1,222 | Upside potential: 14%

Coromandel International has confirmed a breakout above the rounded bottom pattern at ₹1,275 on the weekly chart with a strong bullish candle, indicating a positive bias. 

During the pattern formation, volume activity tends to decline, while at the breakout, there is an increase in activity, indicating heightened market participation. 

The stock is trending within a medium-term rising channel that recently took support at the lower band and is now heading towards the upper band. 

The weekly RSI is holding above its reference line, indicating positive bias.

Samvardhana Motherson International | Previous close: ₹151.25 | Buying range: ₹145-140 | Target price: ₹158-167 | Stop loss: ₹135 | Upside potential: 10%

Samvardhana Motherson International has demonstrated a breakout above the multiple resistance around ₹140 on the weekly chart, with a strong bullish candle indicating the continuation of the uptrend. 

The volume activity increased at the breakout, indicating an influx of market participation at the breakout level. 

It displays a bullish trend on the weekly chart, characterised by higher highs and higher lows, and is further supported by an upward-sloping trendline, suggesting a prevailing upward bias. 

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

KNR Constructions | Previous close: ₹317.90 | Buying range: ₹311-305 | Target price: ₹354-368 | Stop loss: ₹285 | Upside potential: 16%

On the weekly chart, KNR Constructions has broken out above a three-year symmetrical triangle pattern at ₹300 with a strong bullish candle, indicating the onset of an uptrend. 

The stock has broken above the weekly upper Bollinger Band, generating a buy signal. 

This breakout suggests a potential bullish trend. The stock is holding above key moving averages of 20, 50, 100, and 200 days, indicating an uptrend in both the short and medium term. 

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

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher Pvt Ltd

VA Tech Wabag | Previous close: ₹980.05 | Target price: ₹1,100 | Stop loss: ₹935 | Upside potential: 12%

The stock has indicated a series of higher low patterns on the daily chart, maintaining above the significant 50EMA (exponential moving average) to signify an ascending trending mode, and currently, with support taken near the ₹935 zone, has indicated a positive candle formation to improve the bias. 

"The RSI is currently well placed, and with a trend reversal indication, we anticipate further upward movement with much upside potential visible. We suggest buying the stock for an upside target of ₹1,100, keeping the stop loss of ₹935 level," said Koothupalakkal.

NHPC | Previous close: ₹107.25 | Target price: ₹120 | Stop loss: ₹100 | Upside potential: 12%

The stock has indicated an ascending channel pattern on the daily chart with a series of higher low formations, maintaining the strong overall bias. Recently, with support taken near ₹98.60, there is again an indication of a trend reversal with a positive candle pattern to improve the bias. 

Further rise can be expected in the coming days. With the RSI getting better, indicating a trend reversal, a buy signal has been triggered with upside potential visible from current levels. 

"We suggest buying the stock for an upside target of ₹120, keeping the stop loss of ₹100," said Koothupalakkal.

Data Patterns (India) | Previous close: ₹2,962.40 | Target price: ₹3,140 | Stop loss: ₹2,800 | Upside potential: 6%

The stock has slowly and steadily witnessed a rising trend with a series of higher low patterns on the daily chart and has maintained the 50EMA as a support zone. 

Once again, taking support near the 50EMA zone of ₹2,805, the stock has indicated a positive candle formation to improve the bias and is signalling a further rise.

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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.