Stocks to buy this week: Tata Motors, HCL Tech, Persistent among 12 technical picks; do you own any? | Mint
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Business News/ Markets / Stock Markets/  Stocks to buy this week: Tata Motors, HCL Tech, Persistent among 12 technical picks; do you own any?
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Stocks to buy this week: Tata Motors, HCL Tech, Persistent among 12 technical picks; do you own any?

Axis Securities suggests that if Nifty crosses and sustains above the 19,200 level, it could witness buying, propelling the index towards 19,300-19,400 levels; if it breaks below 18,900 level, it could witness selling, pushing it towards 18,750-18,600.

Due to prevailing headwinds, experts recommend buying technically and fundamentally sound stocks for the short term. Premium
Due to prevailing headwinds, experts recommend buying technically and fundamentally sound stocks for the short term.

Nifty 50 fell 2.5 per cent last week and is on course to end October in the negative territory on concerns over the high-interest rates, geopolitical tensions, foreign capital outflow and unimpressive Q2 earnings.

Technical experts pointed out that Nifty on the weekly chart formed a long bearish candle with lower highs and lows compared to the previous week, indicating further weakness.

According to Axis Securities, the chart pattern suggests that if Nifty crosses and sustains above the 19,200 level, it could witness buying, propelling the index towards 19,300-19,400 levels. However, if the index breaks below the 18,900 level, it could witness selling, pushing it towards 18,750-18,600.

"The weekly strength indicator RSI is moving downwards and is quoting below its reference line, indicating a negative bias. For the week, we expect Nifty to trade in the range of 19,400-18,600 with a negative bias," Axis Securities said.

Due to prevailing headwinds, experts recommend buying technically and fundamentally sound stocks for the short term. 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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Axis Securities

Alkem Laboratories | Buying range: 3,660-3,588 | Target price: 3,865-4,000 | Stop loss: 3,505

Alkem Laboratories showcased a strong breakout from a medium-term falling channel formation at 3,550 level in mid-July on the weekly chart, marked by a powerful bullish candle, indicating a positive bias.

The stock retested the upper band of the channel and bounced back sharply, reaffirming the breakout.

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

The weekly strength indicator RSI given a crossover above its reference line generated a buy signal.

"The above analysis indicates an upside of 3,865-4,000 levels," said the brokerage firm.

Canara Bank | Buying range: 372-366 | Target price: 407-418 | Stop loss: 350

On the weekly chart, Canara Bank broke above the multiple resistance zone at 348 in mid-September, rallying to 387. After retesting the breakout area, it bounced back sharply, confirming 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 experienced a surge in trading volume during the breakout, indicating a substantial increase in market participation at the breakout market participation at the breakout level.

The weekly strength indicator RSI given a crossover above its reference line generated a buy signal.

"The above analysis indicates an upside of 407-418 levels," said the brokerage firm.

Also Read: RIL share price rises 2% after Q2 results; top brokerages remain upbeat on the stock

HCL Technologies | Buying range: 1,260-1,236 | Target price: 1,325-1,375 | Stop loss: 1,210

On the weekly chart, HCL Tech surged above the key resistance zone at 1,200 in early September, reaching 1,311. After successfully retesting the breakout level, the stock rebounded strongly, affirming the ongoing uptrend.

The stock is currently following a rising channel pattern and recently found support at the lower band of the channel, experiencing a bounce back. It is now on track towards the upper band of the channel.

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 given a crossover above its reference line generated a buy signal.

"The above analysis indicates an upside of 1,325-1,375 levels," said the brokerage firm.

Swan Energy | Buying range: 360-354 | Target price: 405-425 | Stop loss: 333

Swan Energy has broken above the cup and handle patterns on the daily chart with a strong bullish candle, signalling a positive momentum.

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

It broke above the weekly upper Bollinger band, generating a buy signal. The stock is forming higher highs and lows on the weekly chart, signalling a robust uptrend. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal.

"The above analysis indicates an upside of 405-425 levels," said the brokerage firm.

Also Read: Suzlon shares continue bulltrend despite 350% rally in FY24. Buy, sell or hold?

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

Tata Teleservices | Buying range: 84-87 | Target price: 100 | Stop loss: 78

The stock has corrected approximately 25 per cent since reaching a high near 110 on September 15, 2023. At the current juncture, it has taken support near the 200 daily exponential average, i.e., the 85 level, which is also the previous swing high.

On the indicator, the daily RSI has made an impulsive structure near the oversold zone of 30, which is looking lucrative.

Tata Elxsi | Buying range: 7,550-7,625 | Target price: 8,100 | Stop loss: 7,299

For the last two months or so, this counter has made a nice base near the 100 daily exponential average. At the current juncture, it is nicely placed near 21 DEMA (daily exponential moving average).

On the indicator front, the daily RSI has reversed from 50 levels along with an ongoing positive cross on daily DMIs, which is looking lucrative.

City Union Bank (CUB) | Buying range: 134-136 | Target price: 155 | Stop loss: 124

CUB has been under pressure for some time, but at this juncture, it is trading near its crucial support.​ Previously, the stock turned from this level, and we saw a rally towards 200.​ On the weekly chart, a range breakout is seen with massive volume, which is looking lucrative.​

Also Read: NTPC shares fall over 2% despite brokerages raising target; what should investors do?

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher

BHEL | Target price: 133 | Stop loss: 111

The stock has witnessed a decent erosion from the 133 level. It has currently arrived at the long-term trendline support of 113 level where it has shown signs of bottoming out, improving the bias.

A move past the significant 50EMA level of 121 shall further strengthen the trend.

The RSI has flattened out after the steep slide and has much potential to carry on with upside momentum.

Tata Motors | Target price: 720 | Stop loss: 608

The stock witnessed a short correction recently from the resistance barrier of 678 level and indicated a pullback from the near-term support of 624 level.

A further rise can be anticipated for the initial target of 680. The RSI has cooled off from the highly overbought zone and is currently well-placed with the strength indicated and has the potential to rise further.

Gujarat Mineral Development Corporation (GMDC) | Target price: 425 | Stop loss: 340

The stock has witnessed a strong rally in the last three months and currently, with the overall trend strong, it is showing signs of consolidation after the recent correction from the peak of 434 level.

It is expected to rise in the coming days with a series of higher low formations visible on the daily chart. The RSI has cooled off from the highly overbought zone and is currently well-placed. It has the potential to rise further.

Gaurav Bissa, VP, InCred Equities

Persistent Systems | Target price: 6,380 | Stop loss: 5,880

Persistent has been one of the strongest names in the IT space. The stock witnessed a major breakout around 5,200 level which pushed the stock towards 6,000 level.

It has witnessed consolidation in the last few days and has given a consolidation breakout on the back of strong volumes. It has witnessed a bullish MACD crossover on the daily charts which can keep the trend strong and a bullish crossover in the Ichimoku setup can result in an upside to 6,400 levels.

Spandana Sphoorty Financial | Target price: 950 | Stop loss: 830

Spandana has been in a consistent formation of higher highs and higher lows on the weekly charts, which is a sign of a strong uptrend. The stock has witnessed a bullish flag pattern on the weekly charts which is a continuation pattern in nature. It has also witnessed a two-year consolidation breakout with strong volumes which can catapult the stock towards 1,000 levels.

Read all market-related news here

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: 30 Oct 2023, 10:44 AM IST
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