Stocks to buy this week: RIL, M&M, Exide, YES Bank among 12 technical picks; do you own any?
Axis Securities expects Nifty to trade in the range of 20,200-19,600 with a positive bias this week.
Domestic equity market benchmark Nifty 50 witnessed some selling pressure on Monday, November 20, amid mixed global cues.
On the technical front, according to Axis Securities, the chart pattern suggests that if Nifty crosses and sustains above 19,800 level, it would witness buying which would lead the index towards 20,000-20,200 levels. However, if the index breaks below the 19,600 level, it will witness selling which will take the index towards 19,400-19,300.
For the week, Axis Securities expects Nifty to trade in the range of 20,200-19,600 with a positive bias. The daily and weekly strength indicator RSI is above its respective reference lines, indicating positive bias, said Axis Securities.
Experts recommend buying technically and fundamentally sound stocks at the current juncture, 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. Take a look:
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Gaurav Bissa, VP, InCred Equities
Apollo Hospitals Enterprise | Target price: ₹5,900 | Stop loss: ₹5,250
Apollo Hospitals has witnessed a fresh breakout from a small consolidation on the weekly charts which can give a push to the stock price.
The stock has also witnessed a breakout from a bullish pennant pattern on a larger period which is a continuation pattern in nature.
It has witnessed a bullish MACD crossover on the weekly charts and a move above 70 in the weekly RSI is expected to lend a strong thrust to the price.
City Union Bank (CUB) | Target price: ₹160 | Stop loss: ₹138
CUB has been in a strong consolidation since 2020 and was seen forming a base at around ₹120. The stock has witnessed a smaller consolidation breakout, implying a short-term upside can be seen in the coming days.
This is supported by a follow-through of a bullish ABC pattern breakout on the point and figure charts with a cluster count at around ₹160. The stock is expected to pick up momentum once the RSI trades above 70 on the daily timeframe.
Puravankara | Target price: ₹180 | Stop loss: ₹154
Purvankara has enjoyed a swift upside on the back of strong gains witnessed in the realty space in the last few months. The stock has witnessed a five-year breakout from a bullish triangle pattern on the weekly charts.
The stock has witnessed strong trading and delivery volumes in the last few weeks, implying increased interest by the market participants which can push the prices higher.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
YES Bank | Target price: ₹27 | Stop loss: ₹17
In the last couple of weeks, YES Bank has gained some momentum. It is placed near ₹20. Recently, it took out its previous swing with huge volume and successfully sustained above it.
On the indicator front, daily DMI and RSI (relative strength index) hint at a bullish bias in the counter.
"One can buy the stock in the range of ₹20–21 for a target of ₹27 and a stop loss of ₹17 on a daily close basis," said Patel.
Aarti Industries | Target price: ₹600 | Stop loss: ₹485
For the last two months, this counter has been under selling pressure. There is massive support near ₹485–495 in the form of a monthly central pivot range. On the indicator front, weekly DMIs have given a bullish cross which further hints towards a bullish bias in the counter.
"One can buy the stock in the zone of ₹520–530, and the target should be ₹600 with a stop loss of ₹485 on a daily close basis," said Patel.
Tata Elxsi | Target price: ₹9,000 | Stop loss: ₹7,950
In the last two months or so, this counter made a nice base near the 100 daily exponential average. At the current juncture, it has given a breakout on a weekly scale and sustained above its previous swing high of ₹7,885.
On the indicator front, the weekly RSI has entered above the 70 level, along with an ongoing positive cross on weekly DMIs, which is looking lucrative.
"One can buy the stock in the range of ₹8,250–8,350 with an upside target of ₹9,000 and a stop loss of ₹7,950 on a daily close basis," said Patel.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher
Reliance Industries (RIL) | Target price: ₹2,600 | Stop loss: ₹2,260
The stock has indicated multiple positive parameters with a breakout above the falling channel pattern. A move past the long-term trendline resistance zone on the daily chart at ₹2,350 and also the breach above the significant 50EMA level of ₹2,347 indicate a strong bias for a further fresh upward move.
The RSI has indicated a trend reversal from the oversold zone and currently is well placed, indicating strength to carry on with the momentum ahead from current levels.
Zensar Technologies | Target price: ₹572 | Stop loss: ₹490
The stock has indicated a higher bottom formation pattern on the daily chart with a Cup and Handle pattern also visible in the longer-term timeframe with currently improving the bias moving past the significant 50EMA level of ₹504.
The RSI has indicated a trend reversal from the oversold zone and currently is well-placed indicating strength.
Mahindra & Mahindra (M&M) | Target price: ₹1,730 | Stop loss: ₹1,500
The stock after the short correction has bottomed out near ₹1,450, taking support and indicating a decent pullback to move past the confluence of moving averages of 50EMA and 100 period MA at ₹1,535 to improve the bias.
With a positive candle formation on the daily chart, it has made the chart look attractive with further rise anticipated. The RSI is on the rise and is well-placed with much upside potential visible from the current levels.
Axis Securities
SBI Life Insurance Company | Buying range: ₹1,413-1,385 | Target price: ₹1,500-1,585 | Stop loss: ₹1,350
On the daily chart, SBI Life Insurance Company penetrated the consolidation zone ranging from ₹1,385-1,250 with a robust bullish candlestick pattern, signalling the continuation of a medium-term uptrend.
This breakout is accompanied by a huge volume which signifies a strong comeback of bulls and increased participation.
The stock is well placed above its 20,50, 100 and 200-day SMAs (simple moving averages) which reconfirms a bullish trend.
The daily and weekly 'Bollinger' band buy signals show increased momentum. The weekly strength indicator RSI has given a crossover above its reference line generating a buy signal.
Exide Industries | Buying range: ₹281-277 | Target price: ₹303-315 | Stop loss: ₹267
Exide Industries demonstrated a strong breakout from a rounding bottom formation on the daily chart, accompanied by a powerful bullish candle, indicating a positive bias.
Volume activity during the pattern formation period declined, but it surged at the breakout, reaffirming the positive bias in the stock trend.
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 has given a crossover above its reference line, generating a buy signal
Computer Age Management Services (CAMS) | Buying range: ₹2,780-2,724 | Target price: ₹3,060-3,185 | Stop loss: ₹2,600
On the weekly chart, CAMS surged above the horizontal channel pattern at ₹2,710 with a robust bullish candle, indicating the initiation of an uptrend.
The stock is currently following a higher tops and bottoms formation on the daily and weekly timeframe which signals bullish sentiments
The stock's closing above the daily and weekly upper Bollinger band has generated a buy signal.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
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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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