Stocks to buy this week: HDFC Bank, Cochin Shipyard, NMDC, Jindal Stainless among 9 technical picks; do you own any? | Mint
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Business News/ Markets / Stock Markets/  Stocks to buy this week: HDFC Bank, Cochin Shipyard, NMDC, Jindal Stainless among 9 technical picks; do you own any?
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Stocks to buy this week: HDFC Bank, Cochin Shipyard, NMDC, Jindal Stainless among 9 technical picks; do you own any?

Nifty 50 declined almost by a per cent in intraday trade on Tuesday, January 23, extending the losses into the second consecutive session.

Market observers point out that the Nifty 50 has strong resistance at 21,800 and if the index falls below this level, a sideways trade is expected. (PIxabay)Premium
Market observers point out that the Nifty 50 has strong resistance at 21,800 and if the index falls below this level, a sideways trade is expected. (PIxabay)

Nifty 50 declined almost by a per cent in intraday trade on Tuesday, January 23, extending the losses into the second consecutive session. The domestic benchmark is going through a consolidation phase after hitting a record high of 22,124 on January 16.

The index lost 1.24 per cent last week after weaker-than-expected December quarter earnings of heavyweight HDFC Bank. Moreover, fading optimism over an early rate cut and geopolitical concerns kept investors wary.

Market observers point out that the Nifty 50 has strong resistance at 21,800 and if the index falls below this level, a sideways trade is expected.

"We had expressed our lack of confidence to climb back on the 22,240-22,400 trajectory in the face of 21,800 posing a stiff resistance. While we wait for a break beyond the same for confirmation, slippage past 21,570 may lend to a sideways trend with a negative bias," said Anand James, Chief Market Strategist at Geojit Financial Services.

"A slow drop to the 20,900 vicinity is a scenario which we have been watchful for, in the last week, but we will be watchful of bargain hunting resurfacing before testing 21,350," said James.

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As the market sentiment appears cautious, experts recommend buying technically and fundamentally sound stocks at the current juncture. Based on the recommendations of several experts, below are 9 stocks that one can consider buying for the next three to four weeks. Take a look:

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

HDFC Bank | Target price: 1,575 | Stop loss: 1,425

For the last two years or so, this stock has been rejected six times from the 1,725–1,750 zone and is currently placed near the 1,535 mark. 

At present, HDFC Bank has taken timely support, retracing nearly 0.707 per cent of its recent up-move. 

A long-term bull trendline has been placed near 1,500, which is exactly around the above-mentioned 0.707 per cent retracement. 

On the indicator front, the weekly MACD has not made any bearish signals, and the weekly stochastics are taking a breather from their recent 260-point move. 

"Based on the technical setup, one can accumulate this stock in the range of 1,460–1,490 with a stop loss of 1,425 and a target of 1,575," said Patel.

Cochin Shipyard | Target price: 950 | Stop loss: 815

This counter has been in a stellar rally since it has been making higher highs and higher lows. 

Also, it has nicely followed major DEMAs regularly. In previous trading sessions, it took out its previous swing high and sustained above it. 

On the indicator front, daily stochastics have entered the overbought zone once again, which is a sign of strength. 

"One can buy this stock in the zone of 850–870 for a target of 950, and the stop loss should be 815 on a daily close basis," Patel said.

Tanla Platforms | Target price: 1,300 | Stop loss: 1,107

For the last three weeks or so, this counter has been consolidating in the range of 1,070–1,150. 

On January 10, it took out the said range, thus making it lucrative at current levels. 

On the indicator front, the Weekly MACD has given a bullish cross exactly above the zero line, which is a sign of further bullishness in the counter. 

"One can buy this stock in the range of 1,165–1,180 with an upside target of 1,300 and a stop loss of 1,107 on a daily close basis," said Patel.

Also Read: Zee share price tanks 30%, erases over 6k crore mcap as Sony calls off merger; brokerages downgrade stock

Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher

Jindal Stainless | Target price: 645 | Stop loss: 555

The stock has gained much strength in the last two years with a strong uptrend visible with regular instances of consolidation and thereafter regaining the momentum for fresh upward movement. 

Currently, after the short correction from the peak of 622, the stock has indicated signs of a trend reversal taking support near 557 and with improvement in the bias, is expected to rise further in the coming days. 

The stock has maintained above the significant 50EMA level for the last two months. 

"With support currently visible near 555 level, one can buy this stock for an upside potential target of 645 keeping the stop loss of 555," said Koothupalakkal.

Inox Green Energy Services | Target price: 162-177 | Stop loss: 127

The stock has regained strength after the short correction, forming a flag pattern on the daily chart with new round momentum witnessed with a bullish candle. 

With the support taken near 127, the stock has indicated a trend reversal, signalling a further rise in the coming day. 

"With a decisive breach above the previous peak level of 150, a fresh breakout would be triggered for the next targets of 162 and 177 visible. The RSI also has cooled off from the highly overbought zone and currently is well placed to support our view," said Koothupalakkal.

NMDC | Target price: 237 | Stop loss: 196

The stock has been in a strong uptrend for five to six months. After a short correction, it has once again shown signs of bottoming out, taking support near 196 and indicating a trend reversal with a positive bullish candle pattern on the daily chart. 

The RSI indicator also has corrected significantly from the highly overbought zone and reversed to signal a buy. 

"With much upside potential visible once again, we suggest buying and accumulating the stock for an upside target of 237 and 251 levels, keeping the stop loss of 195," said Koothupalakkal.

Also Read: Stock market today: Sensex, Nifty 50 fall nearly 1% after strong opening: 5 key reasons behind the market dip

Gaurav Bissa, VP, InCred Equities

Paradeep Phosphates | Target price: 92 | Stop loss: 75

Paradeep Phosphate was in an 18-month consolidation and formed a rising wedge pattern. 

It recently witnessed a breakout from this pattern on the weekly charts on the back of strong volumes but failed to capitalise on the momentum providing market participants a chance to enter the stock for a strong upside. 

RSI is currently trading near 70 levels on the weekly charts which once sustains above 72 can give a strong push to the stock price towards 95 levels.

Hindustan Oil Exploration Company | Target price: 207 | Stop loss: 181

Hindustan Oil Exploration Company has been in an 18-month consolidation. 

However, it has recently witnessed incremental volumes suggesting strong accumulation in the stock. 

The stock has shown a breakout on daily charts along with a buy signal in the Ichimoku system on a daily timeframe which can result in the start of a fresh uptrend. 

It has also witnessed a bullish MACD crossover which can give a strong push to the price towards 220 level.

India Nippon Electricals | Target price: 750 | Stop loss: 600

India Nippon has witnessed multiple breakouts on the weekly charts. 

It has witnessed a breakout from a seven-year bullish triangle pattern on the back of strong volumes. 

It has also witnessed a smaller swing breakout above 630 level suggesting a strong uptrend can be seen in the coming time. 

RSI is comfortably trading above 70 which is likely to keep the trend strong.

Read all market-related news here

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.

 

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Published: 23 Jan 2024, 01:15 PM IST
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