Stocks to buy: SBI, ICICI Bank, M&M among 12 stocks that may rise 5-16% in next 3-4 weeks, say analysts

Stocks to buy: Nifty 50, the benchmark index of the Indian stock market, opened 0.2 per cent lower at 24,320.05 on Monday, August 12, against its previous close of 24,367.50, amid mixed global cues.

In the previous session, Nifty 50 jumped over a per cent. Still, it ended 1.4 per cent lower on the weekly scale as investors continued booking profits at higher levels of concerns over elevated valuations, geopolitical tensions, unimpressive Q1 earnings and economic slowdown in the US.

Experts say the Indian stock market will continue reacting to global and domestic factors.

"Global as well as domestic factors are likely to influence the market this week. Globally, stock markets will keenly watch the US consumer data and the core CPI numbers, which will indicate the strength/ weakness of the US economy. The stability in the yen indicates that the fears surrounding the yen carry trade are behind us. Therefore, the likely trends in the US macros and the Fed rate cut expectations will influence markets much more than any other factors," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

While the Indian market's medium—and long-term prospects remain bright, experts expect some volatility in the short term. They say investors should focus on quality stocks and, in the short term, consider buying stocks with favourable technical indicators.

Based on the recommendations of several experts, here are 12 stocks that can rise 5-16 per cent in the next 3-4 weeks. Take a look:

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

State Bank of India (SBI) | Previous close: ₹824.30 | Buying range: ₹815-825 | Target price: ₹900 | Stop loss: ₹780 | Upside potential: 9%

After reaching the level of ₹889, the stock experienced a significant decline, dropping nearly 90 points, or a 10 per cent decrease in its price.

It has found support at its 100-day simple moving average (DSMA). A bullish pattern has emerged precisely at this 100 DSMA support level of ₹805.

"Given these technical indicators, we recommend taking a long position in the stock within the price range of ₹815-825. The potential upside target is set at ₹900, while a stop loss should be placed at ₹780 on a daily closing basis to mitigate risk," said Patel.

ICICI Bank | Previous close: ₹1,171.60 | Buying range: ₹1,165-1,175 | Target price: ₹1,250 | Stop loss: ₹1,130 | Upside potential: 7%

ICICI Bank stock has found support within its previous breakout range and has maintained this level for the past three sessions.

An alternate bullish BAT pattern has formed on the daily chart within this support zone of ₹1,165-1,175, making the stock attractive at these levels.

This technical setup suggests a strong potential for upward movement.

"We recommend buying ICICI Bank in the price range of ₹1,165-1,175. The potential upside target is set at ₹1,250, while a stop loss should be placed near ₹1,130 on a daily closing basis to manage risk effectively," said Patel.

Steel Authority of India (SAIL) | Previous close: ₹129.35 | Buying range: ₹125-130 | Target price: ₹150 | Stop loss: ₹116 | Upside potential: 16%

After reaching a peak of ₹175 in May 2024, SAIL has been under significant selling pressure.

The stock has consistently formed lower highs and lower lows, leading to a sharp decline of 50 points, or 29 per cent.

Currently, it is testing its 200-day SMA, a critical technical level that also aligns with the 50 per cent retracement of the rally that began in October 2023 and extended through May 2024.

This confluence of technical factors makes the stock attractive at its current levels.

Additionally, the current price zone coincides with SAIL's previous breakout range, further strengthening its potential for a rebound.

Shiju Koothupalakkal, Technical Research Analyst, PL-CAPITAL - Prabhudas Lilladher

Exide Industries | Previous close: ₹493.20 | Buying range: ₹487-500 | Target price: ₹565 | Stop loss: ₹470 | Upside potential: 15%

The stock has witnessed a decent correction from the level of ₹585 levels. It has arrived near the important 100 period MA (moving average) at ₹475 level, where it has shown consolidation.

With improvement in the bias, it is anticipated to rise further in the coming days.

The Relative Strength Index (RSI) has corrected significantly and arrived at the oversold zone, indicating a positive trend reversal to signal a buy.

Mahindra & Mahindra (M&M) | Previous close: ₹2,749.15 | Buying range: ₹2,730-2,760 | Target price: ₹3,070 | Stop loss: ₹2,600 | Upside potential: 12%

The stock has been moving within a range with resistance witnessed near ₹3,000.

Recently, after a short period of correction, it showed signs of bottoming out near ₹2,625.

Indicating a decent pullback has improved the bias, and one can anticipate a further rise in the coming days.

The stock has moved past the significant 50EMA level of ₹2,715 to establish conviction and, with the RSI correcting gradually, is well positioned currently, indicating a positive trend reversal to signal a buy.

Godrej Agrovet | Previous close: ₹831.40 | Buying range : ₹815- 840 | Target price: ₹935 | Stop loss: ₹780 | Upside potential: 13%

After a strong rally recently, the stock has consolidated for quite some time, indicating a flag pattern on the daily chart.

It has indicated a positive bullish candle formation with significant volume participation visible to improve the bias.

The RSI has cooled off from the highly overbought zone and is currently well-placed, indicating a positive trend reversal to signal a buy.

Vishnu Kant Upadhyay, AVP, Research and Advisory at Master Capital Services Ltd.

Bank of Baroda (BoB) | Previous close: ₹245.85 | Buying range: ₹243-245 | Target price: ₹265, ₹268 | Stop loss: ₹228 | Upside potential: 9%

The stock witnessed a sharp correction, declining nearly 22 per cent from its all-time high.

Currently, support is found near a rising trendline on the weekly chart.

The recent price decrease has been accompanied by diminishing trading volumes, suggesting reduced participation by sellers.

Additionally, the prices have remained above the 55-week EMA (exponential moving average), which has served as a critical support level for a long time.

Coromandel International | Previous close: ₹1,693.70 | Buying range: ₹1,665-1,675 | Target price: ₹1,780, ₹1,800 | Stop loss: ₹1,580 | Upside potential: 6%

The prices form an ascending triangle pattern on the daily chart, signalling the potential for upward movement.

During recent gains, trading volumes have substantially increased.

The prices are trading comfortably above their short-term moving averages, specifically the 34-day and 55-day EMAs, further strengthening the bullish outlook.

Alkem Laboratories | Previous close: ₹5,796.85 | Buying range: ₹5,650-5,630 | Target price: ₹6,020, ₹6,080 | Stop loss: ₹5,400 | Upside potential: 5%

Alkem Laboratories has broken out from a double top formation, supported by a higher bottom on the daily chart.

This breakout is validated by a notable increase in trading volumes, indicating growing buyer participation.

The stock is trading above its short-term moving averages, while the MACD indicator also remains positive, further confirming the bullish sentiment.

Hardik Matalia, Derivative Analyst, Choice Broking

Welspun Corp | Previous close: ₹657.80 | Buying price: ₹657.8 | Target price: ₹710, ₹725 | Stop loss: ₹625 | Upside potential: 10%

Welspun Corp is on the verge of a breakout from its consolidation phase, supported by increased trading volume.

The RSI at 57.64, with a positive crossover, signals rising buying momentum. Additionally, the price’s bounce from the 20-day EMA reflects trend strength.

"If the stock stays above ₹570, it could advance towards a target range of ₹710 to ₹725," said Matalia.

PNB Housing Finance | Previous close: ₹821 | Buying price: ₹821 | Target price: ₹900, ₹920 | Stop loss: ₹780 | Upside potential: 12%

PNB Housing Finance recently broke out of its daily range, which is supported by notable trading volume.

The RSI, at 57.49, is trending upward, indicating increasing buying momentum.

"If the price manages to close above the ₹825 level, it may potentially reach short-term targets of ₹900 and ₹920. To prudently manage risk, it is advisable to set a stop loss at ₹780," Matalia said.

Borosil | Previous close: ₹397.15 | Buying price: ₹397.15 | Target price: ₹435, ₹450 | Stop loss: ₹380 | Upside potential: 13%

Borosil has recently broken out of a falling parallel channel on the daily chart, accompanied by a significant increase in trading volume.

This breakout suggests a potential for further gains. The RSI stands at 62.40, indicating that the stock is not overbought and thus has room for further upward movement.

"If the stock closes above the ₹400 level, it could reach short-term targets of ₹435 and ₹450. However, immediate support is located at ₹380," said Matalia.

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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.