Stocks to buy this week: Ashok Leyland, SRF, Godrej Consumer among 12 technical picks; do you own any?

Nifty 50 ended about a per cent higher last week as expectations grew stronger that the rate hikes are to end globally and concerns over Israel-Hamas wr eased. Moreover, stable domestic macroeconomic numbers and broadly in-line September quarter earnings of India Inc. also boosted sentiment.

On the technical front, Nifty formed a bullish candle on the weekly chart but remained within the previous week's high-low range last week. This shows the lack of strength in the index.

According to the brokerage firm Axis Securities, the chart pattern suggests that if Nifty crosses and sustains above 19,350, it could witness buying, leading the index towards 19,400-19,500. However, if the index breaks below the 19,150 level, it could witness selling, taking it towards 19,000-18,800," said Axis Sec.

The weekly strength indicator RSI and momentum oscillator Stochastic have both turned flat, indicating the absence of strength on either side, said Axis Securities. The brokerage firm believes for the current week, Nifty may trade in the range of ₹19,500-18,800 with a negative bias.

As the market outlook for the near term is uncertain, experts recommend buying technically and fundamentally sound stocks at the current juncture. Based on the recommendations of several experts, below are 12 stocks that one can consider buying for the next three to four weeks. Take a look:

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Axis Securities

Brigade Enterprises | Buying range: ₹655-642 | Target price: ₹742-760 | Stop loss: ₹602

Brigade Enterprises exhibited a robust breakout from a consolidation zone between ₹642-550 on the weekly chart, marked by a powerful bullish candle, signalling a positive bias.

The stock is currently following a rising channel formation in the medium term, finding support at the lower band of the channel recently and rebounding, indicating a potential move towards the upper band.

It is holding above key averages of 20, 50, 100, and 200 days simple moving average (SMA), signalling a strong uptrend in the stock. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal.

Godrej Consumer Products | Buying range: ₹1,010-990 | Target price: ₹1,100-1,150 | Stop loss: ₹950

On the weekly chart, Godrej Consumer Products breached the falling channel at ₹1,000 with a strong bullish candlestick pattern, indicating a continuation of a medium-term uptrend.

The stock is exhibiting a pattern of higher highs and lows on the medium chart, forming an upward-sloping trendline, indicating a strong uptrend.

Volume activity during the pattern formation period declined, but it surged at the breakout, reaffirming the positive bias in the stock trend.

The weekly strength indicator RSI given a crossover above its reference line generated a buy signal.

JK Lakshmi Cement | Buying range: ₹732-717 | Target price: ₹814-825 | Stop loss: ₹680

On the weekly chart, JK Lakshmi Cement broke above the descending triangular pattern at ₹738 with a strong bullish candle, signalling an uptrend after a consolidation breakout.

Volume activity during the pattern formation period declined, but it surged at the breakout, reaffirming the positive bias in the stock trend.

The weekly strength indicator RSI is in a bullish mode and holding above its reference line indicating positive bias.

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Gaurav Bissa, VP, InCred Equities

Godrej Properties | Target price: ₹1,900 | Stop loss: ₹1,700

Nifty Realty has been one of the most consistent and outperforming sectors in recent times. Many of the stocks have witnessed fresh 52-week highs.

Godrej Properties is one of the strongest stocks in the realty segment. The stock has witnessed a very sharp up-move with formations of higher highs and higher lows implying the trend is very strong.

The stock is consistently trading above its short-term moving averages and has witnessed a fresh breakout from a bullish wedge breakout on weekly charts with strong volumes. This is expected to move the stock strongly in the coming days.

Shalby | Target price: ₹330 | Stop loss: ₹275

Shalby has been one of the strongest names in the midcap space. The stock has witnessed a vertical rally in the last few months. This has pushed the stock towards fresh life high levels and it has now witnessed a multiyear swing high breakout on the weekly charts.

The stock has seen strong volumes in the last few months and the RSI has formed a base around 70 which can push the stock higher in the coming days.

Tata Coffee | Target price: ₹290 | Stop loss: ₹253

Nifty FMCG has been one of the major sectors to perform consistently. Though the sector has witnessed a consolation recently, it has managed to hold above its 21WEMA (week exponential moving average) which can give a much-needed push in the coming time.

Tata Coffee was seen trading in a consolation phase for the last two years. The stock witnessed a strong breakout on the weekly charts but it was followed by fresh consolidation. It has now made a fresh swing high which can end its inertia and push the stock towards ₹300 level.

Also Read: Zomato Q2 results cheer the Street. Here's what should you do with the stock

Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher Pvt Ltd

Ashok Leyland | Target price: ₹210 | Stop loss: ₹147

The stock has maintained a strong trend on the weekly chart with a short erosion witnessed from the peak of ₹191. It has almost retraced 50 per cent of the recent rally with the support lying at ₹160 of the significant 50EMA level.

The RSI also has gradually cooled off from the overbought zone and is currently well placed.

"With the chart looking good, we suggest buying the stock for an upside potential target of ₹210-255, keeping the stop loss at ₹147," said Koothupalakkal.

SRF | Target price: ₹2,600 | Stop loss: ₹2,000

The stock has maintained the long-term trendline support near ₹2,000 on the weekly chart. It has shown improvement in the bias with a pullback; it is expected to carry on the positive move further ahead.

A decisive move past ₹2,350 of the cluster of moving averages of 50EMA and 100 period MA on the weekly chart shall further strengthen the trend.

"With the RSI also well placed and indicating a trend reversal to signal a buy, we suggest buying and accumulating the stock for an upside potential target of ₹2,600-2,950, keeping the stop loss near ₹2,000 level," said Koothupalakkal.

CDSL | Target price: ₹1,850 | Stop loss: ₹1,300

The stock, on the weekly chart, has turned the trend positive after the slide and strengthened the bias, moving past the significant 100 period MA, indicating a breakout above the resistance barrier of 14. The RSI is also well placed showing strength.

"There is much upside potential visible from the current levels. With the chart looking attractive, we suggest buying and accumulating this stock for upside targets of ₹1,850 -2,100, keeping the stop loss of ₹1,300," said Koothupalakkal.

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

Tata Teleservices (Maharashtra) | Buying range: ₹85-88 | Target price: ₹100 | Stop loss: ₹78

It has corrected approximately 25 per cent since reaching a high near ₹110 on September 15, 2023. At the current juncture, it has taken support near the 200 daily exponential average, i.e., ₹85, which is also the previous swing high.

On the indicator, the daily RSI has made an impulsive structure near the oversold zone of 30, which is looking lucrative.

Tata Elxsi | Buying range: ₹7,550-7,625 | Target price: ₹8,100 | Stop loss: ₹7,299

For the last two months or so, this counter has made a nice base near the 100 daily exponential average. At the current juncture, it is nicely placed near 21 DEMA. On the indicator front, the daily RSI has reversed from 50 levels along with an ongoing positive cross on daily DMIs, which is looking lucrative.

City Union Bank (CUB) | Buying range: ₹136-139 | Target price: ₹155 | Stop loss: ₹128

CUB has been under pressure for some time, but at this juncture, it is trading near its crucial support.​ Previously, the stock turned from this level, and we saw a rally towards ₹200.​ On the weekly chart, a range breakout is seen with massive volume, which is looking lucrative.​

Also Read: Cello World share price debuts at 28% premium at ₹829 on NSE

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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.