Stocks to buy: HUL, BEL among 12 stocks that can rise 8-15% in next 3-4 weeks
On a weekly scale, the index rose about a per cent last week but formed a ‘Doji’ candle on the weekly chart, indicating market participants are indecisive about the market.
As per brokerage firm Axis Securities, the chart pattern suggests that if Nifty crosses and sustains above the 22,650 level, it would witness buying, leading the index towards 22,800-23,000 levels. However, if the index breaks below the 22,400 level, it would witness selling, taking the index towards 22,200-22,100.
“The weekly strength indicator RSI (Relative strength index) is on the verge of crossing over above its reference line, indicating the trend may change to positive. For the week, we expect Nifty to trade in the range of 23,000-22,100 with a mixed bias,” Axis Securities said.
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Experts recommend focussing on 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:
Axis Securities
Bharat Electronics (BEL) | Last traded price (LTP) ₹224.50 | Buying range: ₹221-216 | Target price: ₹248-255 | Stop loss: ₹204 | Upside potential: 14%
On the weekly chart, BEL has broken out of an eleven-week consolidation zone ranging between ₹217 and ₹179.
This breakout is accompanied by a robust bullish candle, indicating a potential continuation of the medium-term uptrend.
Volume activity has increased at the breakout, indicating a surge in market participation at the breakout.
The stock is currently demonstrating a medium-rising channel trend, finding recent support at the lower band and poised to advance towards the upper band.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
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IDFC First Bank | LTP: ₹80.65 | Buying range: ₹80-78 | Target price: ₹87-91 | Stop loss: ₹75 | Upside potential: 13%
On the weekly chart, IDFC First Bank has broken out above the falling channel pattern at ₹80, signalling a shift in trend towards a positive bias.
It has found support above the 50 per cent Fibonacci retracement level of the rally from ₹52 to ₹101 at ₹77, establishing a medium-term base for potential further upward movement.
Post-breakout, the stock is anticipated to sustain its medium-term uptrend as it undergoes profit booking, amounting to 50 per cent of the recent rally, followed by a reversal breakout.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
Escorts Kubota | LTP: ₹2,998.35 | Buying range: ₹2,970-2,910 | Target price: ₹3,285-3,390 | Stop loss: ₹2,768 | Upside potential: 13%
On the weekly chart, Escorts Kubota has broken out above the falling channel pattern at ₹2,885, accompanied by a strong bullish candle, signalling a positive bias.
It has found support above the 50 per cent Fibonacci retracement level of the rally from ₹1,808 to ₹3,440, at ₹2,621, potentially setting a medium-term base for further upward movement.
The stock maintains levels above the key moving averages, including the 20, 50, 100, and 200-day SMAs (simple moving averages), suggesting a positive bias in its trend.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
BASF India | LTP: ₹3,627.50 | Buying range: ₹3,580-3,510 | Target price: ₹3,945-4,120 | Stop loss: ₹3,345 | Upside potential: 14%
BASF has exhibited a breakout above the multiple resistance zone around ₹3,500 on the weekly chart, indicating a positive bias.
The medium-term resistance zone around the ₹3,500 level is expected to transition into a support zone, due to the principle of ‘change in polarity’ in technical analysis.
The stock is forming higher highs and higher lows on the weekly chart, while also maintaining above an upward-sloping trendline, indicating an upward bias.
The weekly RSI is also exhibiting a higher high-low formation, confirming the movement in the stock price.
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Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Hindustan Unilever (HUL) | LTP: ₹2,266.95 | Buying range: ₹2,250-2,280 | Target price: ₹2,500 | Stop loss: ₹2,145 | Upside potential: 10%
After reaching the level of ₹2,769, HUL experienced a notable downturn, witnessing a significant decline of approximately 435 points, or about 16 per cent.
However, in the subsequent six trading sessions, the stock displayed resilience, avoiding further declines and instead consolidating within a range spanning from ₹2,230 to ₹2,280.
Within this price range, a bullish AB=CD pattern has formed on the daily chart. This range also corresponds with the 0.50 per cent retracement level of a price swing observed between March 2022 and July 2023.
On a daily scale, the RSI has exhibited a complex structure (W shape) along with some regular bull divergence on the four-hour chart.
The range of ₹2,230-2,280 aligns with the S3 weekly Camarilla Pivot, suggesting a potentially attractive buying opportunity.
AU Small Finance Bank | LTP: ₹634.75 | Buying range: ₹620-640 | Target price: ₹725 | Stop loss: ₹585 | Upside potential: 14%
AU Small Finance Bank reached a peak of ₹813 on January 9, 2024, and experienced a decline of about 32 per cent thereafter.
However, in the past two weeks, the stock has shown a significant recovery, indicating a bullish sentiment.
On the indicator side, the weekly scale Stochastics indicator has identified a “hidden bull divergence” close to its previous low point recorded on March 20, 2023.
This divergence suggests the possibility of upward momentum and indicates a potential bullish sentiment.
Orient Cement | LTP: ₹217.10 | Buying range: ₹210-220 | Target price: ₹250 | Stop loss: ₹195 | Upside potential: 15%
Following a peak near ₹293, Orient Cement encountered a notable downturn, marked by a sharp decline of almost 103 points, equating to a substantial 35 per cent decrease in its overall value.
Despite this downturn, Orient Cement has shown signs of stabilisation around the ₹200 level for the week, establishing a sustained support base.
The ₹190-200 level coincides with the Fibonacci ratio clustering. Moreover, during this period, a 1:1 leg has also been formed around this support zone, further reinforcing a bullish sentiment in the stock.
The analysis of the daily scale RSI indicator reveals a bullish hidden divergence, suggesting a favourable outlook for Orient Cement.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher
West Coast Paper Mills | LTP: ₹636.25 | Target price: ₹730 | Stop loss: ₹615 | Upside potential: 15%
The stock witnessed a decent correction from its peak of ₹815. It bottomed out near ₹580 to indicate a decent pullback.
Further, it arrived near the confluence of the 200-period moving average (MA) and 50-exponential moving average (EMA) level of ₹645.
“A decisive breach above should further strengthen the trend with the next targets of ₹700 and ₹730 levels anticipated. The near-term support would be around ₹615,” said Koothupalakkal.
NBCC (India) | LTP: ₹138.35 | Target price: ₹159 | Stop loss: ₹126 | Upside potential: 15%
The stock has gained strength after the consolidation and a decent pullback, moving past the 50EMA level of ₹119, has improved the bias. The RSI is on the rise and has already indicated a trend reversal with much upside potential.
Railtel Corporation Of India | LTP: ₹395.55 | Target price: ₹448 | Stop loss: ₹375 | Upside potential: 13%
The stock, after the steep correction, picked up significantly to move past the important 50EMA level of ₹378. The RSI has recovered from the highly oversold zone and witnessing a gradual rise to strengthen the bias.
Riyank Arora, Technical Analyst, Mehta Equities
Shriram Properties | LTP: ₹130.35 | Target price: ₹140.90 | Stop loss: ₹122.60 | Upside potential: 8%
The stock has successfully broken out above its trendline resistance level of ₹127 on the daily timeframe charts.
With the RSI (14) showing a reading of 63.58 and indicating an upward trend, there’s considerable momentum in the stock.
Bajel Projects | LTP: ₹226.50 | Target price: ₹250 | Stop loss: ₹209 | Upside potential: 10%
Bajel Projects witnessed a notable breakout above its recent consolidation trendline resistance at ₹225.45 on the daily charts.
With a positive overall chart structure and the stock closing above minor trendline resistance, it’s anticipated to ascend to ₹250 and beyond.
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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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Published: 08 Apr 2024, 09:47 AM IST
