Indian stock market benchmarks, the Sensex and the Nifty 50, traded in the negative in morning trade on Tuesday, May 21, amid weak global cues ahead of the release of the minutes of the Federal Reserve's latest policy meeting, anticipating cues about the timing and extent of interest rate cuts this year.
Caution ahead of the Lok Sabha election 2024 outcome also keeps the market down even as it is not witnessing wild gyration.
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Brokerage firm Axis Securities expects the Nifty 50 to trade between 23,000 and 22,000 for the week, with a mixed bias.
"The weekly strength indicator RSI (Relative Strength Index) remains flat and is below its reference line, indicating the absence of momentum on either side," said Axis Securities.
According to the brokerage firm, if the Nifty 50 crosses and sustains above the 22,600 level, it will witness buying, leading the index towards 22,800-23,000 levels. However, if the index breaks below the 22,350 level, it will witness a selloff, taking the index towards 22,200-22,000 levels.
The Indian stock market is expected to witness volatility in the near term. Market experts suggest picking stocks with strong technical indicators. Based on the recommendations of several experts, here are 10 stocks that can rise 4-19 per cent in the next 3-4 weeks. Take a look:
Also Read: IRFC share price rises 3.5% post Q4 results, dividend announcement
Axis Securities
Container Corporation Of India (Concor) | Last traded pride (LTP): ₹1,100.90 | Buying range: ₹1,080-1,060 | Target price: ₹1,215-1,268 | Stop loss: ₹998 | Upside potential: 15%
On the weekly chart, Concor has demonstrated a breakout above the consolidation zone between ₹1,007 and 818, suggesting the continuation of an uptrend.
The stock experienced a rebound to ₹1,084, a subsequent pullback to the breakout level, and a bounce back confirming the breakout.
During pattern formation, volume activity tends to decline, while at the breakout, activity increases, indicating an influx of market participation.
The weekly RSI has given a crossover above its reference line, generating a buy signal.
Also Read: Bharat Electronics share price climbs over 9% to new record high on stellar Q4 earnings, Motilal Oswal upgrades to 'buy'
BF Utilities | LTP: ₹926.50 | Buying range: ₹915-897 | Target price: ₹1,028-1,085 | Stop loss: ₹845 | Upside potential: 17%
BF Utilities has demonstrated a breakout above a symmetrical triangular pattern at ₹900 on the weekly chart, with a strong bullish candle indicating the continuation of the uptrend.
During pattern formation, volume activity tends to decline, while at the breakout, activity increases, indicating heightened market participation.
The stock has established a support base at ₹710, holding above the 38 per cent Fibonacci retracement level of the rally from ₹283-978, indicating potential medium-term support.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
GAIL (India) | LTP: ₹208.75 | Buying range: ₹206-202 | Target price: ₹238-248 | Stop loss: ₹187 | Upside potential: 19%
GAIL has broken out above the small downward-sloping trendline on the daily chart at ₹208, indicating positive bias.
On the daily chart, it displays a bullish trend, characterised by higher highs and lower lows.
This trend is further supported by an upward-sloping channel, suggesting a prevailing upward bias.
The stock is holding above key moving averages of 20, 50, 100, and 200 days, indicating an uptrend in both the short and medium term.
Daily RSI is above its reference line, indicating positive bias.
Also Read: GAIL India share price extends rally for third session as brokerages raise target after Q4 results; Should you buy?
Indian Energy Exchange (IEX) | LTP: ₹158.35 | Buying range: ₹155-151 | Target price: ₹175-182 | Stop loss: ₹142 | Upside potential: 15%
IEX has formed the “piercing line" candlestick pattern on the weekly chart, signalling the potential reversal pattern.
The stock found support at the key medium-term 200-day moving average and bounced back.
The stock is holding above key moving averages of 20, 50, 100, and 200 days, indicating an uptrend in both the short and medium term.
The weekly RSI has given a crossover above its reference line, generating a buy signal.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Titan Company | LTP: ₹3,362.55 | Buying range: ₹3,330-3,365 | Target price: ₹3,600 | Stop loss: ₹3,235 | Upside potential: 7%
After reaching the ₹3,800 mark on April 1, 2024, the stock experienced a significant downturn, with a decline of nearly 600 points, or a 16 per cent loss in price.
However, amidst this downturn, a compelling opportunity emerged. The stock exhibits a bullish AB=CD Pattern with a 1:1 leg ratio, signalling a potential reversal near the ₹3,200-3,250 zone.
This pattern, coupled with a noteworthy observation from the RSI, adds to the allure of the current juncture.
The RSI indicator reveals a complex structure resembling a W shape within the oversold zone, suggesting a robust potential for an upward price movement.
Shriram Finance | Previous close: ₹2,370.45 | Buying range: ₹2,345-2,365 | Target price: ₹2,460 | Stop loss: ₹2,300 | Upside potential: 4%
Recently, Shriram Finance hit a low near the lower Bollinger band, which often indicates a potential reversal from a downtrend to an uptrend.
In the most recent trading session, the stock formed a long-legged Doji candlestick pattern at this lower Bollinger band level.
A long-legged Doji, characterised by a small central body and long wicks on both sides, signifies market indecision and potential trend reversal, particularly when it appears at a support level like the lower Bollinger band.
Additionally, the hourly chart shows that Shriram Finance has established a double-bottom structure, and the daily stochastic indicator shows a bullish divergence.
A bullish divergence occurs when the stock price reaches a new low, but the stochastic oscillator does not, suggesting weakening downward momentum and a potential reversal.
Jubilant Foodworks | LTP: ₹469.40 | Buying range: ₹470-475 | Target price: ₹526 | Stop loss: ₹445 | Upside potential: 12%
Jubilant Foodworks has two key technical analysis signals: a bull divergence on the daily Moving Average Convergence Divergence (MACD) indicator and a violation of a bearish trend line that had been in place for 3-4 months.
A bull divergence occurs when the stock price forms lower lows while the MACD indicator forms higher lows, indicating a potential reversal from a downtrend to an uptrend.
The breach of the bearish trend line suggests a potential shift in the stock's direction from bearish to bullish.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher Pvt Ltd
NHPC | LTP: ₹97.90 | Target price: ₹116 | Stop loss: ₹92 | Upside potential: 18%
The stock has been on a rising trend, with a strong bias maintained. It is trailing above the significant 50EMA level, with support maintained near ₹92.
With a series of higher lows on the daily chart, further rise is anticipated, and with the RSI currently well-placed, it has much upside potential to continue the positive move further ahead.
"With decent volume participation witnessed and the chart looks good, we suggest buying and accumulating the stock for an upside target of ₹116 in the coming days, keeping the stop loss of ₹92," said Koothupalakkal.
GMR Airports Infrastructure | LTP: ₹86 | Target price: ₹99 | Stop loss: ₹82 | Upside potential: 15%
The stock has maintained a positive trend overall. It has been moving within a range for quite some time, with consolidation witnessed.
Recently, after indicating a higher low formation on the daily chart, taking support near ₹78, a decent pullback to move past the significant 50 EMA level of ₹83 zone has improved the bias, and further rise can be expected in the coming days.
The RSI is well-placed and has indicated strength, signalling an anticipated upward move.
Nippon Life India Asset Management | LTP: ₹592.95 | Target price: ₹670 | Stop loss: ₹555 | Upside potential: 13%
The stock has been in a strong uptrend overall and recently indicated a higher low formation on the daily chart.
It took support near ₹555 to improve the bias, anticipating a further rise in the coming days.
The RSI has cooled off from the overbought zone and is currently well-placed, indicating a trend reversal to signal a buy.
It has the potential to carry on with the positive move further ahead.
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Disclaimer: The promoters of HT Media Ltd, which publishes Mint, and Jubilant Foodworks are closely related. There are, however, no promoter cross-holdings.
The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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Published: 21 May 2024, 10:33 AM IST
