Stocks to buy this week: Bajaj Auto, Inox Wind, PNB among 12 technical picks; do you own any?

The Nifty 50 surged by more than 1 per cent during morning trading on Monday, January 29, setting a positive tone for the start of the week. This week is poised to witness two significant events—the Interim Budget 2024 and the US Federal Reserve interest rate meeting.

The market may see some volatility ahead of these events even though experts believe these two events may not have a major impact on the market sentiment as the Budget is not likely to make big announcements and the US Fed is expected to maintain a status quo on interest rates.

"Two important events are due this week: the interim Budget and the Fed meeting on rate decision. But these events are unlikely to impact the market in a big way. The Budget will be a vote on account without major announcements capable of impacting the market. Regarding the Fed decision, no rate cut is expected, but the commentary will be keenly watched," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Technical experts believe that Nifty 50 may trade with a negative bias for the week.

"For the week, we expect Nifty 50 to trade in the range of 21,700-20,900 with a negative bias," said Axis Securities.

"The weekly strength indicator RSI and momentum oscillator Stochastic have both turned negative and are below their respective reference lines, indicating a profit booking," Axis said.

According to the brokerage firm, the chart pattern suggests that if Nifty 50 crosses and sustains above the 21,500 level, it would witness buying, leading it towards 21,600-21,700 levels. However, if the index breaks below the 21,250 level, it would witness selling, taking it towards 21,000-20,900.

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As the market is expected to see volatility in the near term, 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:

Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher

Bajaj Auto | Target price: ₹8,200-8,400 | Stop loss: ₹7,250

The stock has been in a strong uptrend for the last seven to eight months. Recently, after a short dip, it has been consolidating for quite some time.

Currently, indicating a positive bullish candle on the daily chart, it has confirmed a decent breakout above ₹7,420 to further strengthen the trend.

The RSI has cooled off from the highly overbought zone and is well-placed with immense upside potential visible from the current rate.

"We suggest buying and accumulating the stock for an upside initial target of ₹8,200 and ₹8,400 levels in the coming days with stop loss to be maintained at ₹7,250 level," said Koothupalakkal.

Also Read: SBI Card share price plunges over 5% as Q3 result misses estimates; should you buy, sell or hold the stock?

Inox Wind | Target price: ₹540–575 | Stop loss: ₹435

The stock has witnessed a decent rally in the last three months with recently resisting near ₹540 and correcting to take support near ₹425.

Currently, it has indicated a bullish candle with a higher low formation pattern on the daily chart to suggest strength.

With the RSI also correcting quite significantly, is well-placed and has signalled a buy with a trend reversal confirmed.

"With the chart looking good and immense upside potential visible, we suggest buying the stock for an upside target of ₹540-575 keeping the stop loss of ₹435," said Koothupalakkal.

Amara Raja Energy & Mobility | Target price: ₹877 | Stop loss: ₹785

The stock after the decent rally has been in consolidation for quite some time. Once again taking support near ₹785 level of the significant 50EMA zone, it has shown signs of improvement with momentum picking up.

"With the chart looking good and RSI signalling a buy, we expect a further rise in the coming days for an upside target of ₹877, keeping the stop loss of ₹785," Koothupalakkal said.

Also Read: HDFC Bank share price gains 2% after RBI approves LIC's stake acquisition

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

Rain Industries | Target price: ₹210 | Stop loss: ₹155

For the last two months or so, this counter has been consolidating between ₹145 and ₹155. 

Recently, it gave a breakout from the said range on a weekly closing basis, which is looking lucrative. 

It has also formed a bullish Gartley pattern, which is 1.38 years old, thus making it more reliable. (The Gartley pattern is a harmonic chart pattern, based on Fibonacci numbers and ratios, which help traders, identify reaction highs and lows.) 

Also, it has violated a couple of trendlines. 

The best part about this bullish reversal is that every bottom has bought with huge volume bars, which indicates bullish bias in the counter. 

On the indicator front, the weekly RSI (relative strength index) has given a trendline violation, which further affirms our bullish stance on the counter. 

"We advise traders and investors to go long in the stock in the range of ₹170-176 with an upside target of ₹210, and the stop loss would be placed at ₹155 on a daily close basis," said Patel.

Greaves Cotton | Target price: ₹200 | Stop loss: ₹143

The stock consolidated around 100–200 DEMA (double exponential moving average) through the entire year 2023, followed by recent bear trendline violations. 

Volume is picking up from lower levels, thus making it attractive at the current levels. 

On the indicator front, the weekly MACD (moving average convergence divergence) has given a bull cross just near the zero line, which further affirms our bullish stance. 

"One can buy the stock in the zone of ₹163–166 with a target of ₹200 and a stop loss of ₹143 on a daily basis," Patel said.

Borosil Renewables | Target price: ₹750 | Stop loss: ₹499

January 2024 has been fabulous for this counter as it has already given a 38 per cent return in just one month. Still, a lot of upside potential is seen. 

On the monthly timeframe, it has taken out the previous seven months' candle. 

Also, volume is very huge from lower levels which is making it a lucrative buy. 

On the indicator front, the monthly stochastic has given a bull cross just above the oversold zone which further confirms the bullish stance in the counter. 

"One can buy the stock in small tranche in the range of ₹590-630 and another tranche in the range of ₹550-560 (if tested) for an upside target of ₹750 and stop loss should be placed near ₹499 on a daily close basis," said Patel.

Also Read: Cipla share price down more than 2%: should you BUY, Sell or Hold the stock post Q3 earnings?

Gaurav Bissa, VP, InCred Equities

GIC Housing Finance | Target price: ₹290 | Stop loss: ₹235

GIC Housing has been trading in a consolidation phase for a while now. 

While it did manage to witness a breakout in the weekly charts, it has been muted with continued underperformance. 

However, it is now showing early signs of catching up with its peers. 

It has bounced back smartly after retesting the bullish triangle breakout retest level. 

"It has also witnessed a golden crossover in the weekly charts which can provide a much-needed thrust to the stock price towards 300 levels," said Bissa.

Dhunseri Ventures | Target prie: ₹450 | Stop loss: ₹375

Dhunseri Ventures has been in a strong momentum for the last few months. 

It has recently witnessed a rising trendline breakout on the weekly charts on the back of strong volumes suggesting it is ready for a sustained upside towards ₹450 level. 

It has also witnessed a strong consolidation breakout on the weekly charts along with a similar breakout in RSI on the weekly charts which can result in the start of a fresh uptrend.

Axis Securities

Punjab National Bank (PNB) | Buying range: 104-102 | Target price: ₹121-125 | Stop loss: ₹94

On the weekly chart, PNB has broken out above the multi-year resistance around ₹99 with a bullish candle, signalling the continuation of a medium-term uptrend.

The stock has already broken above the resistance at ₹99 on the weekly chart and is expected to confirm this on the monthly chart, indicating a continuation of the uptrend.

It is trending in rising channel formation. Recently, the stock took support at the lower band of the channel and headed towards the upper band of the channel.

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

Fertilizers and Chemicals Travancore | Buying range: 880-864 | Target price: ₹1,020-1,055 | Stop loss: ₹799

On the weekly chart, the stock breached the ascending triangular pattern at the ₹865 level, indicating the initiation of an uptrend following a period of consolidation.

The stock is exhibiting a pattern of higher high-low formations on the weekly chart, signalling a medium-term uptrend.

The closing above the upper Bollinger Band on the daily chart has generated a buy signal, indicating a positive momentum even on a shorter timeframe.

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

JK Lakshmi Cement | Buying range: ₹920-902 | Target price: ₹1,080-1,130 | Stop loss: ₹826

On the weekly chart, JK Lakshmi Cement broke above the multiple resistance zone around the ₹915 level, signalling the continuation of the medium-term uptrend.

The increase in volume activity at the breakout suggests an influx of market participation, emphasising the significance of the price movement.

The stock is maintaining its position above the 38 per cent Fibonacci retracement level of the rally from ₹628 to ₹916, establishing a medium-term support base around ₹810.

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

PNC Infratech | Buying range: ₹410-402 | Target price: ₹464-478 | Stop loss: ₹377

On the weekly chart, PNC Infratech broke above the cup and handle pattern at ₹390, signalling the commencement of an uptrend after two years of consolidation.

Volume activity declined during pattern formation; however, there was an increase in volume at the breakout, indicating heightened market participation.

The stock 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 is in a bullish mode and is holding above its reference line indicating a positive bias.

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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.