Stocks to buy this week: ICICI Bank, Kotak Mahindra Bank, IndiGo, Voltas among 12 technical picks; do you own any? | Mint
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Business News/ Markets / Stock Markets/  Stocks to buy this week: ICICI Bank, Kotak Mahindra Bank, IndiGo, Voltas among 12 technical picks; do you own any?
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Stocks to buy this week: ICICI Bank, Kotak Mahindra Bank, IndiGo, Voltas among 12 technical picks; do you own any?

Experts believe the shirt to medium-term outlook of the market is positive but the market is at a premium valuation which can trigger some consolidation in the near term.

Nifty 50 clocked a strong gain of about 3.5 per cent last week, scaling its fresh peaks and crossing the 21,000 mark for the first time. (REUTERS)Premium
Nifty 50 clocked a strong gain of about 3.5 per cent last week, scaling its fresh peaks and crossing the 21,000 mark for the first time. (REUTERS)

Nifty 50 clocked a strong gain of about 3.5 per cent last week, scaling its fresh peaks and crossing the 21,000 mark for the first time on factors, including strong GDP growth, RBI's upward revision in growth estimates and expectations of political stability and the continuation of policies after the Lok Sabha election 2024 post-BJP's impressive victory in Madhya Pradesh, Rajasthan and Chhattisgarh assembly elections.

On Monday, December 11, the Nifty 50 hit its record high of 21,019.80 while the Sensex also made its fresh peak of 70,048.9 in early trade.

Experts believe the shirt to medium-term outlook of the market is positive but the market is at a premium valuation which can trigger some consolidation in the near term.

"We maintain a bullish outlook on the overall markets in the short-term due to the recent severe fall in oil prices, state election results and consequent anticipation of political stability and economic growth outlook," said G. Chokkalingam, Founder and Head of Research at Equinomics Research Private Limited.

Also Read: FPIs bullish on banking sector again, trend likely to continue

According to brokerage firm Axis Securities, the chart pattern suggests that if Nifty crosses and sustains above 21,000, it would witness buying, leading the index towards 21,200-21,400 levels.

"Important support for the Nifty for the week is around 20,700-20,600. This week, we expect Nifty to trade in the range of 21,400-20,600 with a positive bias. The weekly strength indicator RSI is above its respective reference lines, indicating a positive bias," said Axis Securities.

Also Read: ‘India likely to be most expensive market in the world’, says Zerodha co-founder Nikhil Kamath

Even as the market sentiment appears bullish, experts recommend buying technically and fundamentally sound stocks at the current juncture to maximise gains. 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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Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher

ICICI Bank | Target price: 1,140 | Stop loss: 975

The stock, after the gradual slide witnessed in the last five months, has indicated a trend reversal taking support near the important 200-period MA of 915.

It has recovered strongly, moving past the important 50EMA and 100-period MA levels, indicating a breakout above the falling trendline zone of 980, improving the bias, and signalling a further upward move in the coming days.

Currently, after a short halt near the peak of 1,016, it showed signs of a new round of momentum to carry on the positive move further ahead.

The RSI has gathered strength after the consolidation. It is well-placed and has indicated a trend reversal to signal a buy.

Taj GVK Hotels & Resorts | Target price: 272 | Stop loss: 220

The stock has consolidated for quite some time, maintaining a strong base near 218-220. It has indicated a strong bullish candle pattern on the daily chart moving past the significant 200 period MA of 227, improving the bias.

It has further scope for upward movement in the coming days.

After crossing the initial hurdle of 250, the stock can trigger further momentum for higher targets of 272 and 284 in the medium-term timeframe.

The RSI has indicated a spurt, signalling a buy with much upside potential visible to rise further.

Samvardhana Motherson International | Target price: 112 | Stop loss: 88

The stock, after witnessing a gradual slide, has bottomed out, taking support near the significant 200-period MA (moving average) of 86.50. It indicated a decent pullback, improving the bias and moving past the important 50EMA (exponential moving average) level of 92.60 signalling a further rise in the coming days.

The RSI, after the consolidation near the oversold zone, has picked up well and is on the rise, indicating strength. It has immense upside potential to carry on the momentum further.

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

Kotak Mahindra Bank | Target price: 1,900 | Stop loss: 1,785

On the daily timeframe, the inverse head and shoulder pattern is seen after decent consolidation between 1,700 and 1,790.

At the current juncture, it is placed above the mentioned zone. On the indicator front, both daily RSI and DMIs are displaying positive bias in the counter.

"One can buy the stock in small tranches in the zone of 1,825–1,840 and another in the zone of 1,800-1,810 with an upside target of 1,900, and the stop loss should be placed near 1,785 on a daily close basis," said Patel.

Voltas | Target price: 915 | Stop loss: 825

Voltas was under pressure in the last trading session, but at this juncture, it is trading near its crucial support.

Previously, the stock turned from this level, and we saw a rally towards 900. On the daily chart, Voltas has made a nice base near 820–840 levels, along with volume picking up, which is looking lucrative.

"We advise traders to go long on the stock in the range of 850–860 with a stop loss of 825 and a target of 915," said Patel.

Jubilant Foodworks | Target price: 645 | Stop loss: 499

On a daily scale, this counter has taken out the previous swing high of 556. On a weekly scale, price action is sustaining above all major exponential averages, which is a sign of bullishness.

On the indicator front, the daily RSI has taken out its previous swing high, along with the daily DMI's bullish cross, which further confirms our bullish stance on the counter.

"On a daily close basis, one can buy the stock in the zone of 550-560 with an upside target of 645 and a stop loss of around 499," said Patel.

Also Read: 'Indian stock market outperforms the global market, makes for attractive investment'

Gaurav Bissa, VP, InCred Equities

Home First Finance Company India | Target price: 1,140 | Stop loss: 980

Home First failed to capitalise on the strong rally witnessed in mid-cap space. However, it has now come out of a year-long consolidation on the weekly charts.

The stock has also witnessed a breakout from the cup and handle pattern which is a continuation pattern in nature which can result in the start of a fresh uptrend. The stock has witnessed strong volumes on the weekly charts which can act as fuel for a robust upside.

Puravankara | Target price: 220 | Stop loss: 160

Purvankara witnessed a strong upside which was in line with the tremendous upside seen in the realty sector. The stock has witnessed a 15-year consolidation breakout on the weekly charts which can give a strong thrust to the stock price.

It has also witnessed a breakout from a bullish triangle pattern on the weekly charts which is likely to restrict downside in the coming days.

The stock has witnessed above-average volumes for the last few months, which is a sign of accumulation. A monthly close above 185 is likely to result in the start of a multi-year uptrend which can push the prices towards 250 levels in the medium term.

Patanjali Foods | Target price: 1,900 | Stop loss: 1,400

Patanjali has been in a long consolidation with very low volumes for the major part of the consolidation period. The stock had confirmed a bullish triangle pattern breakout on the weekly charts which implies the stock is out of consolidation and is ready to start a multi-month uptrend.

The stock has witnessed a bullish MACD crossover along with ADX trading above 24, which is a sign of a strengthening uptrend. The stock has witnessed strong volumes during breakout which can propel it towards 2,000 levels.

Axis Securities

RBL Bank | Buying range: 258-253 | Target price: 286-300 | Stop loss: 240

RBL Bank has recently experienced a robust breakout from the consolidation zone between 258-210, accompanied by a strong bullish candle, indicating a continuation of the medium-term uptrend.

Volume activity waned during the pattern formation, but experienced a surge at the breakout, signalling increased market participation.

The stock holding above the 38 per cent Fibonacci retracement level of the rally from 141-256, placed at 210, indicates the formation of a medium-term support base.

The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.

ABB India | Buying range: 4,650-4,557 | Target price: 5,010-5,200 | Stop loss: 4,400

ABB has recently exhibited a strong breakout from the consolidation zone in the range of 4,600-3,900, marked by a strong bullish candle, suggesting a continuation of the medium-term uptrend.

The stock has experienced heightened volume activity during the breakout, signifying a notable surge in the market, signifying a notable surge in market participation.

The stock is forming a higher high-low formation on the weekly chart indicating positive momentum.

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

Interglobe Aviation (IndiGo) | Buying range: 2,840-2,783 | Target price: 3,034-3,150 | Stop loss: 2,700

IndiGo has broken out above the rounded bottom pattern at the 2,745 level, signifying the continuation of a medium-term uptrend.

The stock has broken out with a breakout gap, indicating positive momentum. It has successfully closed the above-the-upper weekly Bollinger band, generating a buy signal.

The stock is forming a higher high-low formation on the weekly chart and holding above an upward-sloping trendline, indicating positive momentum.

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

Read all market-related news here

Disclaimer: The promoters of HT Media Ltd, which publishes Mint, and Jubilant Foodworks are closely related. There are, however, no promoter cross-holdings.

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: 11 Dec 2023, 10:38 AM IST
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