Stocks to buy this week: Asian Paints, Titan, BoB among 12 technical picks
Nifty declined 0.3 per cent in the previous week and formed a “Doji” candlestick formation on the weekly chart, indicating indecisiveness among market participants.
According to Axis Securities, the chart pattern suggests that if Nifty crosses and sustains above the 22,000 level, it would witness buying, leading the index towards 22,150-22,300 levels. However, if the index breaks below the 21,600 level, it would witness selling, taking the index towards 21,500-21,300.
“The weekly strength indicator RSI (relative strength index) 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 22,200-21,500 with mixed bias,” said Axis Securities.
The market may experience some volatility in the near term. Experts recommend buying technically and fundamentally sound stocks at the current juncture. 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
Thermax | Buying range: ₹3,335-3,269 | Target price: ₹3,790-3,885 | Stop loss: ₹3,055
On the weekly chart, Thermax breached the ‘Cup and Handle’ pattern at the ₹3,276 level, indicating a continuation of the uptrend following four months of consolidation.
Volume activity declined during the pattern formation. However, there was an increase in volume at the breakout, indicating heightened market participation.
The stock is exhibiting a pattern of higher high-low formations on the weekly chart and holding above the medium-term upward-sloping trendline, signalling a medium-term uptrend.
The weekly strength indicator RSI given a crossover above its reference line generated a buy signal.
Also Read: It may take RBI few more months to start cutting rate: Roopali Prabhu of Sanctum Wealth
ICICI Lombard General Insurance Company | Buying range: ₹1,600-1,568 | Target price: ₹1,752-1,830 | Stop loss: ₹1,500
On the weekly chart, the stock has broken out above the multiple resistance zone around ₹1,500 with a bullish candle, signalling the continuation of a medium-term uptrend.
The increase in volume activity at the breakout suggests an influx of market participation, emphasising the significance of the price movement.
The closing above the upper Bollinger band on the weekly chart has generated a buy signal.
The weekly strength indicator RSI is in a bullish mode and is holding above its reference line indicating a positive bias.
Bank of Baroda (BoB) | Buying range: ₹266-261 | Target price: ₹296-306 | Stop loss: ₹247
On the weekly chart, Bank of Baroda has broken out above the consolidation zone between ₹240-220 with a bullish candle.
The previous resistance level of ₹240 is expected to now act as support due to the principle of polarity, providing a support zone for the stock’s price movement.
The stock is holding above key averages of 20, 50, 100, and 200-day simple moving averages (SMA), signalling a strong uptrend in the stock.
The weekly strength indicator RSI is in a bullish mode and is holding above its reference line indicating a positive bias.
Also Read: NBCC stock slides for 6th day in a row, locked in 10% lower circuit; here’s why
Gaurav Bissa, VP, InCred Equities
ACC | Target price: ₹2,750 | Stop loss: ₹2,540
ACC has been in a strong uptrend. It has been one of the most stable cement names in recent times.
It has witnessed a fresh breakout from a bullish flag pattern on the daily charts which is a continuation pattern in nature.
The breakout has happened with strong volumes which can act as fuel for a swift upside.
ADX is seen trading well above the 24 level, which is a sign of the trend gaining strength.
SMS Pharmaceuticals | Target price: ₹162 | Stop loss: ₹136
SMS Pharma has been in a consolidation for the last few months. It has now confirmed a breakout from a cup and handle pattern on the daily charts which is a continuation pattern in nature.
The stock has witnessed one of the highest daily volumes which can push the prices in a new zone.
The RSI has witnessed a breakout on daily charts along with a bullish MACD crossover which can result in the start of a strong uptrend.
Also Read: NHPC share price declines 10% ahead of Q3 results today. Should you Buy, Sell or Hold the stock?
EKC has been in a strong uptrend since March 2023 with continuous formations of higher highs and higher lows.
It has now witnessed a breakout from a rising wedge pattern on the weekly charts along with one of the highest weekly volumes which can give a strong thrust to the prices.
The RSI has witnessed a breakout on weekly charts along with a bullish MACD crossover which can result in the start of a fresh uptrend.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher
Titan Company | Target price: ₹3,870 | Stop loss: ₹3,500
The stock, after a short correction, consolidated, taking support near ₹3,500.
It currently has shown signs of improvement with the RSI also flattening out and indicating a trend reversal on the daily chart.
A decisive move past the significant 50EMA level of ₹3,620 shall further strengthen the bias.
Asian Paints | Target price: ₹3,260 | Stop loss: ₹2,880
The stock, after witnessing a decent correction, has once again attained the long-term trendline support at ₹2,900 where it has shown signs of bottoming out. On previous occasions, it maintained the support twice bottoming out and thereafter witnessing a decent rally.
“Currently, with some consolidation around ₹2,900, and a pullback seen, we anticipate further rise in the coming days. With the RSI hovering near the highly oversold zone, it has indicated a trend reversal to signal a buy,” Koothupalakkal said.
“With the risk-reward favourable and the chart looking very attractive, we suggest a buy in the stock for an upside target of ₹3,260, keeping the stop loss at ₹2,880 level,” said Koothupalakkal.
Also Read: Star Cement share price jumps 12% to hit all-time high; what should investors do?
The stock has witnessed some erosion from the peak of ₹818, taking support near the important 100 period MA (moving average) of ₹700, showing signs of bottoming out.
With a pullback, it has improved the bias.
The RSI has cooled off from the overbought zone and currently after attaining the oversold region, it has indicated a trend reversal to signal a buy.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Dr Reddy’s Laboratories | Target price: ₹6,675 | Stop loss: ₹5,850
The past few months have been good for pharma stocks since the Nifty Pharma index surged over 20 per cent from the bottom of ₹14,600.
Although most of the heavyweight pharma participated in this rally Dr Reddy’s Laboratories has been consolidating for many weeks.
The stock has now confirmed a breakout which resembles a bullish cup and handle pattern.
“Traders are advised to buy Dr Reddy’s Laboratories in the range of ₹6,100-6,200 with a stop loss of ₹5,850 on a closing basis for an upside target of ₹6,675,” said Patel.
Aether Industries | Target price: ₹975 | Stop loss: ₹810
For a month or so, this counter gained massive momentum from the retracement levels of its previous up move (0.786 per cent), thus making it a lucrative buy.
Time and price retracement are falling at the same length, which is a strong indication of bottoming out. (Time retracement is 0.382 per cent and price retracement is 0.786 per cent).
On the indicator front, the weekly RSI has formed an impulsive structure near the 30 level, which further confirms our bullish stance on the counter.
“One can buy the stock in the zone of ₹855-870 for a target of ₹975 and a stop loss of ₹810 on a daily closing basis,” said Patel.
Rain Industries | Target price: ₹220 | Stop loss: ₹160
For the last two months or so, this counter has been consolidating between ₹145 and ₹155.
Recently, it gave a breakout from the said range on a weekly closing basis, which is looking lucrative.
It has also formed a bullish Gartley pattern which is 1.38 years old, thus making it more reliable.
Also, it has violated a couple of trendlines. The best part about this bullish reversal is that every bottom has bought with huge volume bars, which indicates bullish bias in the counter.
On the indicator front, the weekly RSI has given a trendline violation, which further affirms our bullish stance on the counter.
“We advise traders and investors to go long in the range of ₹175-185 with an upside target of ₹220, and the stop loss should be placed at ₹160 on a daily close basis,” Patel said.
Note: The Gartley pattern is a harmonic chart pattern, based on Fibonacci numbers and ratios, which help traders, identify reaction highs and lows
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.
Here’s your comprehensive 3-minute summary of all the things Finance Minister Nirmala Sitharaman said in her Budget speech: Click to download!
Download The Mint News App to get Daily Market Updates.
Published: 12 Feb 2024, 12:46 PM IST
