Also Read: RBI Monetary policy: A change in stance possible in August? Will RBI cut rates ahead of US Fed
Experts observed that the Nifty 50 formed a small bearish candle with a lower shadow on the weekly chart, indicating support at lower levels.
According to Axis Securities, the chart pattern suggests that if the Nifty 50 crosses and sustains above the 23,400 level, it would witness buying, which can lift the index to 23,500-23,800 levels. However, if the index breaks below the 23,000 level, it would witness selling, taking the index to 22,800-22,600.
“For the week, we expect Nifty to trade in the range of 23,700-22,600 with a positive bias. The daily and weekly strength indicator RSI (Relative Strength Index) is moving upwards and is quoting above its reference line, indicating a positive bias,” said Axis Securities.
All eyes are now on the outcome of the US Fed meeting on Wednesday this week. While the market’s medium to long-term outlook remains attractive, macroeconomic indicators, global cues, and potential government policy announcements will influence the market in the short term.
Experts suggest betting on fundamentally and technically sound stocks considering the current market structure.
Based on the recommendations of several experts, here are nine stocks that can rise 6-15 per cent in the next 3-4 weeks. Take a look:
Axis Securities
Tech Mahindra | Previous close: ₹1,377.60 | Buying range: ₹1,350-1,324 | Target price: ₹1,505-1,550 | Stop loss: ₹1,253 | Upside potential: 13%
On the weekly chart, Tech Mahindra has broken out above a medium-term downward-sloping trendline at ₹1,350 with a strong bullish candle, indicating the onset of an uptrend.
It displays a bullish trend on the daily chart, characterised by higher highs and lows, supported by an upward-rising channel.
It took support at the lower band recently and is now heading towards the upper band.
The weekly RSI has given a crossover above its reference line and broken through the downward-sloping trendline, thus generating a buy signal.
Also Read: From monsoon to rate cut: 5 crucial triggers for Indian stock market after Lok Sabha election 2024
Raymond | Previous close: ₹2,471.65 | Buying range: ₹2,385-2,337 | Target price: ₹2,713-2,830 | Stop loss: ₹2,185 | Upside potential: 15%
Raymond has confirmed a breakout above the rounded bottom pattern at ₹2,300 on the weekly chart with a strong bullish candle, indicating a positive outlook.
During pattern formation, volume activity tends to decline, while at the breakout, activity increases, indicating heightened market participation.
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 strength indicator RSI holds above its reference line, indicating a positive bias.
Also Read: Nifty 50 continues its wild swings; how should investors play this volatility?
Eris Life Sciences | Previous close: ₹994.45 | Buying range: ₹980-962 | Target price: ₹1,065-1,113 | Stop loss: ₹925 | Upside potential: 12%
On the weekly chart, Eris has demonstrated a breakout above the ₹965-800 consolidation zone, with a strong bullish candle indicating the continuation of the uptrend.
The volume activity increased at the breakout, indicating an influx of market participation at the breakout level.
The stock took support at the 38 per cent Fibonacci retracement level of a rally from ₹551 to ₹972, positioned at ₹814, confirming a medium-term support base.
The weekly strength indicator 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
Kotak Mahindra Bank | Previous close: ₹1,753.70 | Buying range: ₹1,730-1,760 | Target price: ₹1,850 | Stop loss: ₹1,690 | Upside potential: 6%
After peaking near the ₹1,926 mark on December 18, 2023, Kotak Mahindra Bank experienced a significant downturn, with a decline of approximately 380 points, or roughly 20 per cent.
However, Kotak Mahindra Bank demonstrated resilience last week by avoiding further drops and instead reversed around the lower Bollinger band.
In the previous trading session, notable buying activity was observed at lower price levels, suggesting investor interest in purchasing the stock at these levels.
From a technical perspective, the monthly stochastics indicator has given a bull cross, indicating a potential shift in momentum and presenting an attractive buying opportunity.
“Traders are advised to consider buying the stock within the range of ₹1,730-1,760, with an anticipated upside target of ₹1,850, keeping a stop loss at ₹1,690 based on a daily closing price,” said Patel.
UPL | Previous close: ₹539.75 | Buying range: ₹525-545 | Target price: ₹590 | Stop loss: ₹499 | Upside potential: 9%
After a period of consolidation in the range of ₹505-530, UPL has successfully broken out of a bearish trendline that persisted for nearly five months.
The stock comfortably maintains its position above this trendline, indicating a strong upward movement. From an indicator perspective, the weekly stochastics have given a bull cross near 60 levels, a positive sign for potential gains.
“We recommend that traders and investors consider taking a long position in the range of ₹525-545. The target for this upward move is ₹590, with a stop loss at ₹499 based on a daily closing price,” said Patel.
Divi’s Laboratories | Previous close: ₹4,524.05 | Buying range: ₹4,480-4,530 | Target price: ₹5,000 | Stop loss: ₹4,260 | Upside potential: 11%
In the current month, Divi’s Labs has surpassed its previous peak, i.e. ₹4,468.
This breakthrough is significant as it indicates that the stock has overcome previous resistance levels and is now positioned for potential gains.
Divi’s Labs’s ability to sustain its price above this range reinforces the likelihood of continued upward momentum.
From a technical analysis perspective, the weekly stochastic oscillator, which helps identify overbought or oversold conditions, has reversed direction at the 55 level and has shown a bullish crossover.
This crossover occurs when the shorter-term stochastic line crosses above the longer-term line, suggesting increased buying pressure and supporting a bullish outlook.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher
Tata Motors | Previous close: ₹970.50 | Target price: ₹1,110 | Stop loss: ₹917 | Upside potential: 14%
The stock has indicated a descending channel breakout above ₹947 level.
It has moved past the significant 50EMA (exponential moving average) level of ₹960 to improve the bias.
The RSI has been hovering near the oversold zone, indicating a trend reversal to signal a buy with much upside potential visible from the current levels.
“The stock has been underperforming for quite some time, and currently, with the chart looking attractive and risk-reward favourable, we suggest buying the stock for an upside target of ₹1,110, keeping the stop loss of ₹917,” said Koothupalakkal.
Bharat Electronics (BEL) | Previous close: ₹283.20 | Target price: ₹320 | Stop loss: ₹252 | Upside potential: 13%
The stock has maintained a strong uptrend overall on the daily chart.
Recently, a correction witnessed from ₹323 has taken support near ₹230 level and indicated a decent pullback to move past the significant 50EMA level of ₹248 to improve the bias.
The RSI has also cooled off from the overbought zone.
It has gradually slipped and is well-positioned, with much upside potential visible from the current rate to continue the positive move.
Larsen & Toubro (L&T) | Previous close: ₹3,532.50 | Target price: ₹3,920 | Stop loss: ₹3,300 | Upside potential: 11%
The stock has witnessed a steep erosion recently from the peak of ₹3,919 with support near ₹3,175.
It recovered strongly to move past the important 200-period MA (moving average) at ₹3305 level, witnessing further pullback, improving the bias, and signalling an upward movement in the coming days.
The RSI has cooled off significantly from the overbought zone and is technically well-placed at current levels, making the chart look attractive again.
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Disclaimer: 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: 10 Jun 2024, 09:42 AM IST
