Stocks to buy this week: Wipro, Kotak Mahindra Bank, PNB among nine technical picks; do you own any?
6 min read 18 Sep 2023, 10:20 AM ISTAnalysts advise following a stock-specific approach at the current juncture. They recommend buying Wipro, UCO Bank, BCL Industries, REC, Kotak Mahindra Bank, etc.
PremiumDomestic market benchmarks the Sensex and the Nifty traded in the negative territory in morning trade on Monday, mirroring weakness in other major Asian peers as investors exhibited caution as they prepared for a week marked by a series of central bank meetings with Fed meet outcome due on Wednesday, Bank of England (BoE) meet outlook on Thursday and Bank of Japan (BoJ) outcome due on Friday.
Markets across the globe are expecting that the rate hikes have peaked and central banks will not lift rates from here on. However, inflation still remains above the central banks' targets in many countries. In simple terms, the war against inflation is not over yet.
Last Thursday (September 14), the European Central Bank (ECB) raised its key interest rate to a record high of 4 per cent but signalled that the hike could be the last one.
"The European Central Bank raised its key interest rate to a record high of 4 per cent on Thursday but, with the eurozone economy in the doldrums, signalled that the hike, its 10th in a 14-month-long fight against inflation, was likely to be its last," reported Reuters.
Analysts are positive about the domestic market for the medium to long term but they expect some volatility in the market in the short term. They advise following a stock-specific approach at the current juncture.
Mint talked to several analysts and they recommended buying the below nine stocks for the next three to four weeks as they look sound on technical parameters. Take a look:
Gaurav Bissa, VP, InCred Equities
Wipro | Target price: ₹470 | Stop loss: ₹425
Lately, Nifty IT has recently been one of the strongest and most consistent major sectors. The fresh breakout on the weekly charts not only pushed the index higher but gave a fresh thrust to many of the large-cap stocks.
Wipro is one of the lucrative large-cap IT stocks to come out of consolidation. The stock witnessed a breakout from a rounding bottom pattern on the daily charts followed by a retest.
"The stock is comfortably trading above major moving averages on the daily charts with RSI trading near the breakout level of 73 which once crossed will likely push the stock towards ₹470 level," said Bissa.
UCO Bank | Target price: ₹44 | Stop loss: ₹38
PSU banks have continued to show outperformance with strong volumes in the last few months suggesting strong interest by the market participants. UCO Bank is currently looking quite strong in the PSU banking space.
The stock has witnessed a bullish flag breakout on the weekly charts which is a strong continuation pattern. It has seen strong volumes in the last few weeks which can ensure the momentum remains intact. It has witnessed a bullish MACD crossover on the weekly charts which can result in the start of a fresh uptrend.
BCL Industries | Target price: ₹600 | Stop loss: ₹520
BCL Industries has been one of the consistent performers with a series of higher highs and higher lows formation on the weekly charts suggesting a strong uptrend. The stock has also witnessed a breakout from a bullish cup and handle pattern on the weekly charts which is a continuation pattern in nature. It has witnessed a breakout on RST and a bullish MACD crossover on the weekly charts, which can result in a fresh uptrend in the coming weeks.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
REC | Target price: ₹280 | Stop loss: ₹238
The stock has witnessed a decent retracement from the peak level of ₹284 and has taken support near ₹240, indicating some improvement in the bias and another upside move in the coming days.
The RSI has cooled off from the highly overbought zone and arrived at an attractive position to regain strength, indicating a reversal.
"With the chart looking good, we suggest buying and accumulating the stock for an upside target of ₹280, keeping the stop loss at ₹238," said Parekh.
Kotak Mahindra Bank | Target price: ₹1,990 | Stop loss: ₹1,720
The stock has maintained a strong base near the support of ₹1,750 and has indicated a decent pullback to come out of the consolidation range, improving the bias and indicating a further rise. The RSI is on the rise and well-placed, indicating strength with further immense upside potential visible.
"With the chart looking attractive, we suggest buying the stock for an upside positional target of ₹1,990 while keeping the stop loss near ₹1,720," said Parekh.
Railtel Corporation of India | Target price: ₹255 | Stop loss: ₹215
The stock witnessed a steep slide from ₹255 where it had a strong resistance. Currently, it has shown signs of improvement with a pullback accompanied by rising volume participation.
"With the overall trend maintained strong, we anticipate a further rise in the coming sessions. The RSI is also easing out from the highly overbought zone and currently, it is well-placed and has the potential to rise further.
"With the chart looking good, we suggest buying and accumulating the stock for an upside target of ₹255, keeping the stop loss at ₹215," Parekh said.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Greenpanel Industries | Target price: ₹450 | Stop loss: ₹355
Greenpanel Industries has been consolidating between ₹310 and ₹350 for the last three months. Recently, it gave breakouts on a weekly scale.
On the daily chart, it is trading above all major daily exponential moving averages, which looks lucrative. Even the weekly RSI has rebounded from 50 levels, thus hinting at further bullish bias.
"We advise traders to go long in the stock in the range of ₹385-390, with a stop loss of ₹355 and a target of ₹450," said Patel.
Punjab National Bank (PNB) | Target price: ₹90 | Stop loss: ₹61
Recently, this counter gave a clean breakout on a monthly scale. Moreover, breakout seems genuine since it is complimented by massive volume on a daily scale.
On the indicator front, RSI on a monthly scale has entered above the 70 zone, further hinting towards bullish bias in the counter.
"One can buy this stock in the zone of ₹72-74 with an upside target of ₹90 with a stop loss of ₹61 on a daily close basis," said Patel.
Aarti Industries | Target price: ₹600 | Stop loss: ₹470
For the last two months, this counter has been consolidating in the zone of ₹450-475. At the start of September, it gave a clean breakout from the said zone and comfortably sustained above it.
Additionally, there is a massive support near ₹475 in the form of a central pivot range. On the indicator front, daily stochastics are showing strength since it is trading above 80 level which further hints towards a bullish bias in the counter.
"One can buy this stock in the zone of ₹510-515 and the target would be ₹600 and the stop loss would be ₹470 on a daily close basis," Patel 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.
