Stocks to buy this week: Maruti Suzuki, Jindal Steel, Dr Reddy’s Labs among 9 technical picks; do you own any?
The Nifty 50 rebounded from a two-week downturn last week, posting a robust gain of 2.35 per cent on the weekly scale despite heightened volatility in the market.
The Nifty 50 rebounded from a two-week downturn last week, posting a robust gain of 2.35 per cent on the weekly scale despite heightened volatility in the market.
Analysts anticipate a positive near-term market trajectory, although intermittent volatility may arise due to domestic as well as global cues.
Analysts at Reliance Securities are positive about the Nifty 50 as long as it does not breach the 21,400 level on the downside.
"A Doji candle on the daily charts indicates resistance at 22,000-22,100 levels while on the downside the support would be at 21,630-21,650 levels. RSI is witnessing and trending above the average line and we expect the momentum to continue over the next few days," said Reliance Securities.
The brokerage firm underscored that the highest call OI (open interest) is at 22,000 strike while on the downside the highest put OI has moved higher to 21,400 for the weekly expiry.
Also Read: Week Ahead: RBI Policy, Q3 Results, macro data, global cues among key market triggers this week
The market may experience some volatility in the near term. Considering this, 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
Maruti Suzuki India | Target price: ₹11,500 | Stop loss: ₹9,999
After breaking the psychological level of ₹10,000 in August 2023, this stock retested ₹10,000 and reversed from that level, which confirms that the August 2023 breakout above ₹10,000 was genuine.
Also, volume was huge at the time of the reversal, which further confirms our bullish stance on the counter. Coincidentally, 200 DEMA, which comes to around ₹9,850, has been successfully tested.
On the indicator front, daily stochastics have shown a bull divergence.
"One can buy the stock in the zone of ₹10,400-10,700 with an upside target of ₹11,500 and stop loss of ₹9,999 on a daily closing basis," said Patel.
Petronet LNG | Target price: ₹320 | Stop loss: ₹235
From 2019 until 2023, the level of ₹240 has proved to be massive resistance.
Fortunately, in January 2024, this counter cleared its resistance at ₹240 comfortably.
It is currently trading near ₹270. The breakout on the monthly chart looks genuine since it is accompanied by huge volume, with respective stochastics reversing from 40 which is looking lucrative at current levels.
"Investors and traders can enter longs in the zone of ₹255–270 with an upside target of ₹320 and a stop loss of ₹235 on a daily closing basis," said Patel.
KPR Mill | Target price: ₹860 | Stop loss: ₹749
After making the top near ₹928 on November 22, 2023, this counter gave a decent correction till ₹732.
In the previous trading session, it bounced back from the support zone of ₹730, which is between 100 and 200 DEMA, and in the process, it also took out its bearish trendline, making it attractive at current levels.
On the indicator front, daily stochastics have given a bull divergence, which further confirms our bullish stance on the counter.
"One can buy the stock in the zone of ₹780–795 with an upside target of ₹860 and stop loss orders should be placed on a daily closing basis around ₹749," said Patel.
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Gaurav Bissa, VP, InCred Equities
Jindal Steel & Power | Target price: ₹835 | Stop loss: ₹750
Nifty Metal index has picked up momentum and witnessed a swing breakout on the weekly charts which opens the possibility of a strong upmove in the metal names.
Jindal Steel is expected to outperform its peers after witnessing a rising wedge breakout on the weekly charts.
The breakout has happened on the back of strong volumes which can drive the prices higher and once the RSI crosses 70 on the weekly charts, prices are expected to gain momentum.
Also Read: Nifty February series outlook: 4 stocks where investors can park their money; do you own?
Dr Reddy's Laboratories | Target price: ₹6,300 | Stop loss: ₹5,900
Nifty Pharma has been one of the strongest and most consistent major indices in the last few months.
Many of the large-cap stocks have enjoyed strong gains and Dr Reddy's Laboratories has been one of the beneficiaries.
It has witnessed a fresh breakout from a bullish pennant pattern on the weekly charts which is a continuation pattern in nature and can push the prices towards ₹6,300.
The RSI has witnessed a swing high breakout on the weekly charts along with a small bullish MACD crossover which can result in the start of a fresh uptrend.
Southern Petrochemicals Industries Corporation (SPIC) | Target price: ₹108 | Stop loss: ₹93
SPIC witnessed a strong upside post covid which was in line with the strong momentum seen in the Nifty Smallcap index.
However, it failed to bank on the momentum and was seen trading in a consolidated range for the last two years.
It has now confirmed a breakout on the weekly charts with one of the highest volumes which can push the stock towards ₹110-120 levels.
A buy signal generated in Ichimoku studies will likely result in the start of a fresh uptrend.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher
Havells India | Target price: ₹1,450 | Stop loss: ₹1,290
This stock, after witnessing a decent correction, has taken support near the long-term trendline support at ₹1,280.
With a positive candle formation on the daily chart, a decent pullback is confirmed, improving the bias and signalling a further rise in the coming days.
"With the RSI indicating a trend reversal from the oversold zone, it has signalled a buy and we suggest buying this stock for an upside target of ₹1,450, keeping the stop loss of ₹1,290," said Koothupalakkal.
Bharat Dynamics | Target price: ₹1,970 | Stop loss: ₹1,680
The stock, after the strong rally in the last three months, consolidated quite well and with support near ₹1,650.
It has once again indicated a positive candle formation on the daily chart, improving the bias and hinting at further rise.
The RSI also has cooled off from the highly overbought zone and is currently well-placed, indicating a trend reversal to signal a buy.
Parag Milk Foods | Target price: ₹244 | Stop loss: ₹195
The stock has witnessed a decent erosion and has cooled off from the peak of ₹263, taking support at ₹190 which has been a strong base maintained on earlier occasions as well.
With a pullback, the bias has improved with the RSI recovering from the oversold zone and indicating a trend reversal to signal a buy.
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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.
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