Stocks to buy this week: NMDC, DMart, SAIL, IDFC among 9 technical picks; do you own any?
Recommendations for buying stocks include Dilip Buildcon, NMDC, Granules India, Avenue Supermarts, Aarti Industries, Quess Corp, SAIL, IDFC, and HUDCO
The domestic market saw some selling pressure on Monday, November 13, a day after clocking decent gains on Diwali Muhurat Trading. Key equity indices the Sensex and the Nifty 50 traded 0.3 per cent lower each around 10:15 am on Monday.
While the long-term outlook of the market remains bright, experts expect the market to see some volatility in the short term due to factors such as election outcomes, geopolitical tensions and macroeconomic indicators.
On the technical front, according to Anand James, Chief Market Strategist at Geojit Financial Services, the 50DMA (daily moving average) at 19,570 remains a stiff challenge, above which, expect buyers to not chase prices higher.
"This also brings the downside markers forward from 19,262/19,170 to 19,433 or 19,370 which would be critical as turnaround points while we play the 19,840 trajectory," said James.
Experts recommend buying technically and fundamentally sound stocks at the current juncture, considering the prevailing uncertainty in the short term. Based on the recommendations of several experts, below are nine stocks that one can consider buying for the next three to four weeks. Take a look:
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Gaurav Bissa, VP, InCred Equities
Dilip Buildcon | Target price: ₹420 | Stop loss: ₹350
Dilip Buildcon witnessed a decent upside since May this year which was followed by a brief period of consolidation. The stock has recently witnessed a breakout from this consolidation on the weekly charts with strong volumes, suggesting a strong upside can be expected in the coming days.
The stock price will likely get a push once the weekly RSI trades above the 72 level. It is finally trading above its 200WEMA (weekly exponential moving average) which could result in the start of a fresh uptrend.
NMDC | Target price: ₹200 | Stop loss: ₹155
NMDC has been in a multiyear consolidation. During this while, it has gained momentum and formed higher highs and higher lows on the weekly charts.
The stock witnessed a breakout at ₹130 which pushed the stock towards ₹160. It has recently witnessed an 11-year breakout on the weekly charts which once sustained can lead to the start of a multi-year uptrend pushing the stock in a new trajectory.
The stock has witnessed incremental volumes in the last 18 months which suggests strong accumulation. Weekly RSI has bounced from the 70 level and till it stays above this, prices are expected to remain strong on an immediate basis.
Granules India | Target price: ₹400 | Stop loss: ₹350
The pharma space has been very strong with consistent outperformance in the last few months. The index is sustaining well above its multi-year breakout, which can keep the momentum intact.
Many of the pharma names are expected to do well in the coming weeks. Granules has been trading in a strong continuation pattern wherein the stock witnesses a strong rise followed by multi-year consolidation.
This is followed by a fresh breakout which catapults the stock prices significantly. The stock has been in consolidation for the last three years and is showing early signs of a breakout. It has witnessed a triangle pattern on the weekly charts which can push the stock towards fresh life high levels.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Avenue Supermarts (DMart) | Buying range: ₹3,775-3,800 | Target price: ₹4,100 | Stop loss: ₹3,600
On a weekly scale, DMart has formed a solid base near ₹3,600, exactly near its historical support of ₹3,500. The recent up-move is supported by decent volume which is looking lucrative.
On the indicator front, the weekly RSI has taken support at the 50 level and reversed from there, thus hinting towards a bullish bias in the counter.
Aarti Industries | Buying range: ₹505-515 | Target price: ₹580 | Stop loss: ₹475
For the last two months, this counter has been under selling pressure. There is massive support near ₹475-465 in the form of monthly central pivot range.
On the indicator front, the weekly MACD has given a bullish crossover which further hints towards a bullish bias in the counter.
Quess Corp | Buying range: ₹455-465 | Target price: ₹520 | Stop loss: ₹425
On November 10, 2023, this counter gave a breakout above the ₹460 level and is currently placed near ₹465. During this breakout, volume is huge which further supports our bullish stance in this counter.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher Pvt Ltd
Steel Authority of India (SAIL) | Target price: ₹100 | Stop loss: ₹82
The stock has witnessed a decent correction from ₹103 to ₹80 levels and has made almost a double bottom formation pattern on the daily chart.
It has indicated a decent pullback to improve the bias and is poised to rise in the coming days with strength visible and has the potential to go to around ₹100 levels.
The RSI is showing a trend reversal from the highly oversold zone and has immense upside potential from current levels.
"With the volume participation decent and the chart looking attractive, we recommend a buy at current levels and in decline for an upside target of ₹100, keeping a stop loss of ₹82," said Koothupalakkal.
IDFC | Target price: ₹135 Stop Loss: 108
The stock has witnessed some erosion from the peak made near ₹132 level and has taken support near ₹112 level, indicating a pullback to improve the bias.
Further, a decisive move past the 100 period MA (moving average) shall strengthen the trend anticipating for further rise in the coming days. With the RSI also indicating a trend reversal from the oversold zone, the chart is looking attractive, signalling a buy.
Housing & Urban Development Corporation (HUDCO) | Target price: ₹94 | Stop loss: ₹76
The stock has corrected from the recent peak of ₹95 to fall to ₹70 and now has bottomed out at around the 100 DMA which is at ₹70.
It has given a positive candle indicating positive bias and also the RSI has given a positive trend reversal signalling a buy with good decent volume participation.
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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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