Stocks to buy this week: ITC, HUL, Concor, GAIL among 10 technical picks; do you own any? | Mint
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Business News/ Markets / Stock Markets/  Stocks to buy this week: ITC, HUL, Concor, GAIL among 10 technical picks; do you own any?
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Stocks to buy this week: ITC, HUL, Concor, GAIL among 10 technical picks; do you own any?

Nifty 50 hits record high after BJP's victory in major states, boosting market prospects for next summer's general election.

Axis Securities said if Nifty crosses and sustains above 20,400 level, it would witness buying, leading the index towards 20,500-20,600 levels. (Pixabay)Premium
Axis Securities said if Nifty crosses and sustains above 20,400 level, it would witness buying, leading the index towards 20,500-20,600 levels. (Pixabay)

Nifty 50 jumped over 2 per cent to hit its fresh record high of 20,702.65 in intraday trade on Monday, December 4, after the Bharatiya Janata Party (BJP) secured victory in three major states on Sunday, boosting the ruling party’s prospects of prevailing in next summer’s general election.

Experts believe the market will see a healthy rally in the near term and most sectors will participate in it because of optimism over political stability and India's healthy macro outlook.

On the technical front, Axis Securities said if Nifty crosses and sustains above 20,400 level, it would witness buying, leading the index towards 20,500-20,600 levels. However, if the index breaks below the 20,150 level, it would witness selling, taking the index towards 20,000-19,900.

"The weekly strength indicator RSI is above its respective reference lines, indicating a positive bias. For the week, we expect Nifty to trade in the range of 20,600-19,900 with a positive bias," said Axis Securities.

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While the market is at an all-time high, experts warn investors should avoid getting carried away and bet on technically and fundamentally sound stocks. Below are 10 stocks that experts recommend 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

Hindustan Unilever (HUL) | Target price: 2,700 | Stop loss: 2,490

After consolidating for 8–10 weeks, HUL gave a breakout from its previous trading range along with a bear trendline violation, which is looking lucrative at current levels.

On the indicator front, the weekly RSI is consistently above 50 levels, along with weekly DMIs that are positive, thus adding further confirmation of bullish bias.

"One can buy the stock in the zone of 2,550–2,570, and the target would be 2,700, with a stop loss of 2,490 on a daily close basis," said Patel.

Jubilant Foodworks | Target price: 655 | Stop loss: 520

On a daily scale, this counter has taken out the previous swing high of 556 approximately. 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 bullish cross, which further confirms our bullish stance in the counter.

"On a daily close basis, one can buy the stock in the zone of 560–570 with an upside target of 655 and a stop loss of 520 on a daily close basis," Patel said.

Chambal Fertilisers and Chemicals | Target price: 365 | Stop loss: 285

Chambal Fertilisers has been consolidating for some time on the weekly chart. Recently, it had a breakout with a huge volume.​On the indicator front, weekly RSI is about to enter the 70 zone, along with weekly DMI, which has turned positive, thus looking lucrative.​

"We advise traders to go long in the stock in the range of 315-320 with a stop loss of 285 and a target of 365," said Patel.

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Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher

Sumitomo Chemical India | Target price: 450 | Stop loss: 384

The stock, after the decent erosion from the 455 level, had bottomed out near 370, taking support and has been in consolidation for quite some time, maintaining the support near 380-384 zone and currently with a strong bullish candle pattern moving past the significant 50EMA (exponential moving average) level of 400 on the daily chart has improved the bias and further rise is anticipated.

The RSI, which is on the rise, is well placed indicating strength and has immense upside potential to carry on the momentum further ahead.

"With the chart looking attractive, we suggest buying and accumulating the stock for an upside target of 450 level, keeping the stop loss of 384," said Koothupalakkal.

Also Read: Assembly election results 2023: How will the Indian stock market react?

Pidilite Industries | Target price: 2,730 | Stop loss: 2,460

The stock has been in consolidation for quite some time, maintaining the support near the important 200-period moving average of 2,480. It is currently indicating a positive candle with significant volume participation to improve the bias.

One can anticipate a further rise with overall indicators showing strength and with the RSI coming out of the consolidation phase, it has triggered a further upward momentum.

"With the chart looking good with much upside potential visible, we suggest buying and accumulating the stock for an upside target of 2,730, keeping the stop loss of 2,460," Koothupalakkal said.

Data Patterns (India) | Target price: 2,380 | Stop loss: 1,850

The stock has indicated a good support zone near the 1,820-1,850 zone for quite some time, maintaining above the 200-period moving average.

It has indicated a decent pullback to improve the bias, moving past the significant 50EMA level of 1,965 and with stability attained, it has scope for further upward movement in the coming days.

The RSI has indicated a trend reversal recently to signal a buy and currently is well placed with much upside potential visible from the current levels.

"We suggest buying and accumulating the stock for an upside potential target of 2,380, keeping the stop loss near 1,850," said Koothupalakkal.

Axis Securities

ITC | Buying range: 449-441 | Target price: 467-485 | Stop loss: 434

On the weekly chart, ITC has convincingly breached the downward-sloping trendline, driven by a robust bullish candlestick pattern, indicating a sustained upward trend.

There is an upswing in volume activity, signifying increased market participation.

The stock is holding above the 38 per cent Fibonacci retracement level of the rally from 325-499, placed at 433, which 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.

GAIL(India) | Buying range: 134-132 | Target price: 145-152 | Stop loss: 127

GAIL has recently experienced a robust breakout from the multi-year high at 130, accompanied by a strong bullish candle, indicating a continuation of the uptrend.

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

The stock demonstrates a pattern of higher highs and lows, maintaining a position above a medium-term upward-sloping trendline, affirming a strong uptrend.

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

Also Read: Nifty 50 at record high; time to increase exposure to equities or turn cautious?

Container Corporation of India (Concor) | Buying range: 780-766 | Target price: 823-855 | Stop loss: 748

On the weekly chart, Concor broke above the cup and handle pattern at 748 with a robust bullish candle, signalling the initiation of an uptrend after a consolidation breakout.

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 stock is forming higher high-low formation on a weekly chart and holding above the 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.

Aarti Industries | Buying range: 550-540 | Target price: 585-613 | Stop loss: 525

Aarti Industries has surpassed the neckline of the double bottom' pattern at the 535 level, signifying the commencement of an uptrend.

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

The stock also broke above the downward-sloping trendline at 548, indicating the initiation of an uptrend.

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: 04 Dec 2023, 11:53 AM IST
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