Stocks to buy this week: RIL, DMart, Tata Consumer, Sobha among 12 technical picks; do you own any?

Nifty 50 on Monday (October 16) opened on a negative note at 19,737.25 against the previous close of 19,751.05, extending the losses into the third consecutive session. The index, however, recovered as the trade progressed and rose about 30 points to the level of 19,780.80 in intraday trade so far.

Market sentiment is cautious on sombre quarterly earnings, weak global cues and concerns over the Israel-Hamas war.

On the technical front, last week, the Nifty 50 index formed a bullish candle, forming higher highs and lows compared to the previous week.

Brokerage firm Axis Securities pointed out that the chart pattern suggests that if Nifty crosses and sustains above the 19,850 level, it would witness buying, leading the index towards 20,000-20,200 levels.

However, Axis Securities believes if the index breaks below the 19,650 level, it will witness selling, taking the index towards 19,500-19,400.

"For the week, we expect Nifty to trade in the range of 20,200-19,400 with a positive bias. The weekly strength indicator RSI is on the verge of crossing above its reference line, indicating the trend may change to positive," said Axis Securities.

Experts recommend betting on quality stocks for the short term due to prevailing uncertainty. Based on the recommendations of several experts, below are 12 stocks that one can consider buying for the next three to four weeks as they look attractive on technical parameters. Take a look:

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Gaurav Bissa, VP, InCred Equities

Asian Granito India | Target price: ₹85 | Stop loss: ₹70

Asian Tiles has been in a 15-month consolidation and during this period it witnessed increased volatility. The stock has confirmed a breakout from this consolidation on the weekly charts with extremely strong volumes.

The delivery volumes have been above average as well, suggesting strong accumulation has been seen in the stock and it is now ripe for a strong upside.

The stock is trading above the Ichimoku cloud on the weekly charts and is on the verge of triggering a buy signal in the indicator which can result in the start of a fresh uptrend.

Metropolis Healthcare | Target price: ₹1,700 | Stop loss: ₹1,450

Many of the diagnostic stocks have witnessed a strong upside in recent times. Metropolis recently witnessed a breakout from the falling parabola on the weekly charts which was followed by a small consolidation.

The stock has witnessed a follow-through breakout which can push the stock higher. It has witnessed a breakout in RSI on the weekly charts which can give a strong thrust to the stock price.

The stock has triggered a buy signal in the Williams Alligator indicator on the weekly charts which can result in the start of a fresh uptrend in the coming weeks.

Bosch | Target price: ₹22,500 | Stop loss: ₹19,500

Nifty Auto has been one of the most consistent major indices in recent times. The upside that started in large-cap four-wheelers and two-wheelers was seen transitioning to auto ancillaries.

Bosch has been one of the interesting beneficiaries of this momentum. The stock has been forming higher highs and higher lows stealthily and has now witnessed a fresh breakout from an eight-year falling trendline pattern on the weekly charts. It has also witnessed a breakout from a small symmetrical triangle pattern which can catapult the stock towards the next hurdle placed at ₹22,500 levels.

The stock has witnessed a bullish MACD crossover on weekly charts which is likely to keep the momentum strong in the coming weeks.

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

Reliance Industries (RIL) | Buying range: ₹2,335–2,350 | Target price: ₹2,450 | Stop loss: ₹2,285

On July 20, 2023, the stock made a high of ₹2,621. Since then, it has been making lower tops and lower lows, which resulted in a 326-point cut in price (12.4 per cent). At the current juncture, near the support of ₹2,300-2,320, selling pressure is gradually slowing down.

On a daily scale, a bullish bat structure is spotted. Along with RSI daily making an impulsive structure after completing bullish divergence near the oversold zone of 30 levels, which is making RIL a lucrative buy candidate,

"We advised going long in the said counter in the range of ₹2,335–2,350 with a target of ₹2,450 and a stop loss of ₹2,285 on a daily close basis," said Patel.

DMart | Buying range: ₹3,900-3,950 | Target price: ₹4,200 | Stop loss: ₹3,785

On a weekly scale, DMart has formed a solid base near ₹3,600, exactly near its historical support of ₹3,500. Moreover, the recent up-move is supported by decent volume along with a violation of the downward-sloping trendline, which is looking lucrative.

On the indicator front, RSI Weekly has taken support on 50 levels and reversed from there, thus hinting towards a bullish bias in the counter.

"We advise traders to go long in the stock in the range of ₹3,900–3,950 with a stop loss of ₹3,785 for the upside target of ₹4,200," said Patel.

RITES | Buying range: ₹495-500 | Target price: ₹535 | Stop loss: ₹475

Recently, this counter has made a nice base near the 50-day exponential moving average, which comes around ₹470–490. In the previous trading session, it took its mentioned range and sustained well above it, near the ₹500 mark. On the indicator front, the daily RSI has reversed from 40 levels after making a double bottom thus hinting towards a bullish stance in this counter.

"One can buy in the range of ₹495 -500 with an upside target of ₹535 and a stop loss of around ₹475 on a daily close basis," said Patel.

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher

Wockhardt | Target price: ₹290 | Stop loss: ₹230

The stock has maintained a strong bottom near ₹220 level and currently, it has given a bullish positive candle to imply strength.]

It has the potential to carry on the momentum still further in the coming days. The RSI also has indicated a trend reversal and is in a strong bias.

Aptech | Target price: ₹330 | Stop loss: ₹278

The stock has witnessed a decent correction from the peak level of ₹422. Recently, it showed signs of bottoming out near the ₹280 level with pullback indicated and improving the bias to some extent.

A decisive breach above the confluence of the 50EMA and 200DMA level of ₹300 should further strengthen the trend and one can anticipate another decent rise.

The RSI also is well-placed and has indicated a trend reversal to signal a buy.

CDSL | Target price: ₹1,650 | Stop loss: ₹1,250

The stock has moved up recently and decisively above the 50EMA level. After consolidation, it has shown improvement in the bias with a second round of momentum to indicate strength. Further, a decisive move past ₹1,430-1,440 should trigger a fresh upside move for the next target of ₹1,650 and ₹1,750 levels.

"With the RSI also well placed and indicating a trend reversal to signal a buy, we anticipate a further upward rise in the coming days. With the chart looking attractive, we suggest buying and accumulating this stock for upside targets of ₹1,650 and ₹1,750 keeping the stop loss of ₹1,240," said Parekh.

Axis Securities

Gujarat State Fertilizers & Chemicals (GSFC) | Buying range: ₹185-181 | Target price: ₹203-210 | Stop loss: ₹173

GSFC has demonstrated a robust breakout from a medium-term multiple resistance zone around ₹184 on the weekly chart with a strong bullish candle indicating positive bias.

After a sharp rally, the stock underwent a consolidation phase before successfully breaking out of the multiple resistance zone around ₹184, ranging between ₹150-184, indicating a decisive move in the stock.

Volume activity during the pattern formation period declined, but it surged at the breakout, reaffirming the positive bias in the stock trend.

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

"The above analysis indicates an upside of ₹203-210 levels," said Axis Securities.

Sobha | Buying range: ₹740-726 | Stop loss: ₹685

On the weekly chart, Sobha has successfully broken out above a multiple resistance zone around ₹740, accompanied by a sizable bullish candle, which signifies the continuation of the uptrend.

The stock is exhibiting a pattern of higher highs and lows on the weekly chart, forming an upward-sloping trendline, indicating a strong uptrend.

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 weekly strength indicator RSI is moving upwards and is above its reference line indicating positive bias.

"The above analysis indicates an upside of ₹830-855 levels," said said Axis Securities.

Tata Consumer Products | Buying range: ₹905-887 | Target price: ₹960-1,000 | Stop loss: ₹865

Tata Consumer Products broke above the horizontal resistance at ₹890, forming a base around this level. According to the principle of polarity, the previous resistance at ₹890 is expected to act as a support going forward.

The stock is currently following a channel formation, having found support at the lower band recently. It is anticipated to move towards the upper band of the channel.

The stock found short-term support at ₹833, corresponding to a 38 per cent Fibonacci retracement from the price range of ₹701-877.

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

"The above analysis indicates an upside of ₹960-1,000 levels," Axis Securities said.

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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.