Stocks to buy: SBI, NMDC, Hindalco among nine stocks analysts recommend betting on for short term; do you own any?
Indian market may hit a fresh all-time high in the next few days as most negatives are already priced in, say market observers. Analysts recommend betting on stocks that look attractive on technical charts.
PremiumThe domestic market is teeming with positivity. The benchmark Nifty hit an intraday high of 18,640.15 on June 5, just 247 points below its all-time high of 18,887.60. Market observers believe the market may hit a fresh all-time high in the next few days as most negatives are already priced in. However, a negative surprise on the interest rate front from the RBI and US Fed may spoil the party.
"Nifty has moved up by 9.5 per cent from the March lows and the market momentum is strong. Macro news flows are positive for a breakout of the upper range. But more activity is likely to be in the broader market where many mid and small-cap stocks are breaking out. There is valuation comfort in the mid and smallcap universe," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Analysts recommend betting on the following nine stocks for the next 3-4 weeks as they look attractive on the technical charts. Take a look:
Sumeet Bagadia, Executive Director, Choice Broking
Bajaj Finserv | Target price: ₹1,515-1,540 | Stop loss: ₹1,415
Bajaj Finserv has exhibited a noteworthy performance. The stock has surpassed all of its short, medium, and long-term exponential moving averages (EMAs), including the 20, 50, 100, and 200 EMAs. Additionally, it has experienced a breakout above the key level of ₹1,440, demonstrating the stock's ability to sustain this level for a week.
Furthermore, the Relative Strength Index (RSI) has remained above 67 and continues to display an upward slope, indicating a strong market sentiment for the stock.
"We anticipate a favourable upward movement for the stock, with a potential target range of ₹1,515-1,540. However, it is important to note that our bullish outlook would be invalidated should the stock drop below ₹1,415," said Bagadia.
Dr. Reddy's Laboratories | Target price: ₹4,770 | Stop loss: ₹4,520
The stock has reversed from its base following a respectable consolidation as the pharma index rises with a positive tilt on a daily basis.
The stock is trading higher than the 20 and 50 daily moving averages. The price is also trading above the middle Bollinger band also positive crossover is indicated in RSI and MACD suggesting continuity in the bullish trend in the near term.
Sustaining high volume points out buying interest among short-term traders.
"One can initiate a long position at the current market price. However, closing and sustaining above ₹4,645 will lead towards ₹4,770 levels in the coming days. Stop loss can be kept at ₹4,520," said the analyst.
State Bank of India (SBI) | Target price: ₹605 | Stop loss: ₹575
SBI has strong support at ₹580 level. A smaller resistance is visible on the charts near ₹590 level. Once the stock overcomes the previously mentioned resistance, it will be able to move closer to the target price of ₹605 and higher.
The stock is trading above all important moving averages also RSI is trading comfortably at 58 levels indicating strength. The Bollinger band has squeezed and the price is trading above the middle band and hence price can move further upwards.
"We recommend buying SBI at the current market price. It can be also added near ₹580 level with a medium-term target price of ₹605. Our analysis will be deemed void if the price closes below ₹575 level," said the analyst.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
NMDC | Target price: ₹122 | Stop loss: ₹104
The stock after the decent correction has bottomed out near ₹104 level and with a short consolidation phase, it has produced a bullish candle pattern on the daily chart, improving the bias. It is on the verge of just moving past the important 50EMA to further strengthen the trend.
The RSI has recovered from the oversold zone, indicating a trend reversal. It has shown strength, signalling a buy.
"Anticipating further upward movement in the coming days, we suggest buying and accumulating the stock for an upside target of ₹122 keeping the stop loss of ₹104," said Parekh.
Zydus Lifesciences | Target price: ₹585 | Stop loss: ₹488
The stock has witnessed a decent bull run in the past one year and recently after a short dip from ₹530 level, it has again regained strength after taking support near ₹485 level, maintaining above the significant 50EMA level of ₹500.
It has improved the bias once again, anticipating a further rise in the coming days. The RSI also is well-placed, indicating a trend reversal with strength indicated.
"It has much upside potential visible. With the chart pattern looking attractive, one can buy and accumulate this stock for an upside target of ₹585 keeping the stop loss of ₹488," said the analyst.
Manappuram Finance | Target price: ₹130 | Stop loss: ₹108
The stock witnessed a steep correction recently from the level of ₹130. It bottomed out at ₹102 level near the long-term trendline support zone and thereafter with a decent consolidation witnessed near the significant 200DMA level of ₹111, it indicated a positive candle improving the bias.
The RSI has flattened out after the steep fall and with the gradual rise witnessed, the overall bias is improving and has upside potential from here on which can carry the stock price to achieve further gains.
"We suggest buying and accumulating the stock for an upside target of ₹130 keeping the stop loss at ₹108," said the analyst.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Hindalco Industries | Buying range: ₹415-422 | Target price: ₹445 | Stop loss: ₹390
Since May 2023, this counter has been in free-fall mode which resulted in a 13 per cent cut in price. At the current juncture, multiple bullish candlesticks patterns like Hammer and Doji have emerged along and the daily RSI has reversed from 40 levels on a daily scale which is indicating further upside in the counter.
"One can buy in small tranches around ₹415-422 and another around ₹410-415 upside Target would be ₹445 and the stop loss would be ₹390," said Patel.
Firstsource Solutions (FSL) | Buying range: ₹125-135 | Target price: ₹155 | Stop loss: ₹114
For the last year, the said counter has been consolidating in the range of ₹100-120 approximately. Recently, it gave a clean breakout along with heavy volume which hints towards further upside in the counter.
Additionally, on a weekly scale, MACD is displaying a bullish crossover exactly above the zero line which is a sign of further bullish momentum.
CDSL | Buying range: ₹1,060-1,067 | Target price: ₹1,175 | Stop loss: ₹999
The stock consolidated in the zone of ₹970-1,000 in May. In the previous trading session, it gave a massive breakout along with huge volume which is hinting bullish momentum in the coming few sessions.
The best part of the above-mentioned consolidation zone of ₹970-1,000 is that those were the levels of the monthly central pivot range. "One can buy in a small tranche in the zone of ₹1,060-1,070 and after that in ₹1,030-1,040 with an upside target of ₹1,175 and stop loss would be ₹999 on a daily close basis," said Patel.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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