BackStocks to buy this week: Experts suggest these six technical picks; do you own any?
Sensex and Nifty have been correcting after hitting record highs due to softer Q1FY24 earnings of heavyweights like Infosys and Reliance Industries. Investors are cautious ahead of the US Fed meeting outcome on July 26.
PremiumAfter hitting record highs, equity benchmarks the Sensex and the Nifty have been witnessing some correction since last Friday due to softer Q1FY24 earnings of some of the heavyweights such as Infosys and Reliance Industries.
Mixed global cues, too, have little to offer to the Indian market. Investors are cautious ahead of the US Fed meeting outcome on July 26. Experts pointed out that investors will be closely observing the FOMC meeting outcome.
"While a 25-basis point rate hike is widely expected, investors will be more interested in the committee's commentary on future rate actions, seeking clues for the anticipated future rate pause," said Vinod Nair, Head of Research at Geojit Financial Services.
The ongoing earnings, macroeconomic prints and central banks' decisions will influence the mood of the market in the near term. Analysts advise for the short term, investors should bet on those stocks that look sound on technical parameters.
Here are six technical calls that one can buy for the next three-four weeks:
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Asahi India Glass | Target price: ₹620 | Stop loss: ₹520
After making a solid base near ₹460-500 levels, which is also a potential reversal zone of the bullish bat pattern, the stock is trading above all critical daily exponential moving averages.
Additionally, it has made a bullish divergence near the above-mentioned potential reversal zone, which is making it lucrative at current levels.
"One can buy between ₹555-560 with an upside target of ₹620 and the stop loss would be around ₹520 on a closing basis," said Patel.
Tata Teleservices (Maharashtra) | Target price: ₹97 | Stop loss: ₹73
For the last two months, this counter has been making a base near its crucial support of ₹70-72 which was also its monthly central pivot range. From the indicator perspective, the daily MACD has given a bullish crossover above the zero-line which hints further upside in the counter.
"One can buy in a small tranche in the range of ₹82-83 and another in the range of ₹76-77 ( if tested) with an upside target of ₹97 and a stop loss would be ₹73 on a closing basis," said Patel.
Sterling and Wilson Renewable Energy | Target price: ₹430 | Stop loss: ₹315
For the last three months, this counter has been making base near its crucial support of ₹290-300, which was also its monthly central pivot range.
From the Indicator perspective, the weekly RSI (relative strength index) has rebounded from 45 levels, echoing further bullish bias in the counter.
"One can buy in a small tranche in the range of ₹360-365 and another in the range of ₹340-350 (if tested) with an upside target of ₹430 and a stop loss would be ₹315 on a closing basis," Patel said.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
Hero MotoCorp | Target price: ₹3,350 | Stop loss: ₹3,000
The stock, after the decent rally, has witnessed consolidation with an indication of a flag pattern and is well placed to trigger another positive move in the coming days with support maintained at around ₹3,050.
A decisive move past the ₹3,150 level should strengthen the trend and can carry on the momentum still further ahead with a fresh upside. "The RSI is well-placed and has indicated strength for further rise for an upside target of ₹3,350. Keep the stop loss near ₹3,000 levels," said Parekh.
Rail Vikas Nigam | Target price: ₹145-154 | Stop loss: ₹130
The stock has indicated two consecutive sessions of positive candles on the daily charts, indicating a breakout after a long time moving past the ₹124 level, hinting at further rise in the coming days.
"A triangular breakout has been confirmed and with the RSI also showing a strong reversal with much upside potential visible. The stock can be accumulated for a further upside target of ₹145-154 levels in the coming days, keeping the stop loss of ₹130 level," said Parekh.
Mazagon Dock Shipbuilders | Target price: ₹2,000-2,080 | Stop loss: ₹1,720
The stock has witnessed a spectacular bull run in the last two months gaining almost 60 per cent. Currently, after a short consolidation phase, it has once again indicated a spurt to come out of ₹1760 level to trigger a fresh upward move.
"The near-term support would be maintained near ₹1,720 and with overall bias remaining positive one can expect further gains in the coming days for the next targets of ₹2,000-2,080 levels," said the analyst.
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Disclaimer: The views and recommendations above are those of individual analysts and broking companies, not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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