Stocks to buy this week: RIL, SBI, Nazara Tech, IREDA among 12 technical picks
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services observed that the current rally in the market, primarily driven by momentum, is now getting support from fundamentals.
He said the sharp bounce in large-cap IT stocks on the back of slightly positive management commentary indicates that an underperforming segment can surprise on the upside on news of a turnaround in the sector.
Vijayakumar further added that the Nifty has broken out on the upside from the consolidation range and it shows signs of a further up move. An important driver of the rally is RIL which is moving up on large delivery-based buying on news of the commissioning of the Dhirubhai Ambani Green Energy project in the second half of 2024.
“RIL, large-cap IT and banking majors can provide fodder for the bulls in the near term,” Vijayakumar said.
While the market is teeming with positivity 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:
Gaurav Bissa, VP, InCred Equities
The Nifty PSU Bank index has witnessed a multiyear breakout and has been sustaining the breakout level comfortably suggesting a strong upside can be seen in the PSU banking names.
SBI seems poised to benefit from this setup. It has retested a bullish wedge breakout on the daily charts suggesting it can move towards fresh life high levels.
RIL has been in a two-year consolidation and underperformed Nifty during this period.
While it has also witnessed a strong bounce since May 2023, it is now that the stock has witnessed a fresh breakout from a rising channel pattern on the daily charts.
A weekly close above ₹2,660 will now ensure the stock moves towards ₹3,000-3,200 levels and also result in a strong outperformance against Nifty.
The momentum is likely to get a push from the RSI which, after sustaining 70, can move towards 80 which can give a thrust to the stock price.
Nazara Technologies | Target price: ₹1,030 | Stop loss: ₹890
Nazara has been a strong performer with consistent formations of higher highs and higher lows which implies it has been in a strong uptrend.
This is supported by price trading above all major moving averages.
The stock has now witnessed a cup and handle pattern breakout on the weekly charts with incremental volumes which is a continuation pattern in nature.
RSI is trading near 70 which after sustaining 71 levels can give a thrust to the price.
A bullish MACD crossover on weekly charts will likely give more strength to the uptrend.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
YES Bank | Target price: ₹31 | Stop loss: ₹21
Recently this counter gave a clean breakout on the weekly timeframe chart along with Stochastics reversing from the 70 zone which is looking lucrative at current levels.
Also, YES Bank has taken out its one-year-old high of ₹24.75, adding further bullish stance in the counter.
“Investors/traders can enter longs in the zone of ₹24-25 with an upside target of ₹31 and a stop loss of ₹21 on a daily closing basis,” said Patel.
KRBL | Target price: ₹420 | Stop loss: ₹359
For the last seven to eight trading sessions, this stock has been consolidating at 200 DEMA (daily moving average).
Recently, KRBL gave a breakout after consolidating between ₹370 and ₹380.
Additionally, it has violated the bear-trendline which further adds bullish confirmation. On the indicator front, daily stochastics have given a reversal from 70, making it a lucrative buy.
“One can buy the stock in the zone of ₹377–382 for an upside target of ₹420 and a stop loss of ₹359 on a daily close basis,” said Patel.
Tanla Platforms | Target price: ₹1,350 | Stop loss: ₹1,099
For the last three weeks or so, this counter has been consolidating in the zone of ₹1,070–1,150. On January 10, it took out the said range, thus making it lucrative at current levels.
On the indicator front, the Weekly MACD has given a bullish cross exactly above the zero line, a sign of further bullishness in the counter.
“One can buy the stock in the range of ₹1,175–1,200 with an upside target of ₹1,350 and a stop loss of ₹1,099 on a daily close basis,” said Patel.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher
This stock has recovered strongly from the low of ₹348 level and has moved past the important 50EMA (exponential moving average) level of ₹390 to improve the bias.
Crossing the 100-period MA (moving average) of ₹400 has strengthened the trend.
The RSI indicator is also well-placed which has indicated a trend reversal from the oversold zone recently.
“With the chart looking good, we anticipate a further rise in the coming days. With the next targets of ₹435 and ₹460 levels visible, one can buy the stock keeping the stop loss of ₹390 level,” said Koothupalakkal.
Exide Industries | Target price: ₹375 | Stop loss: ₹320
The stock has been in a strong uptrend for the last two months and recently after a short consolidation, it has indicated a breakout above the ₹332 level.
Further rise is anticipated in the coming days with the RSI indicating a trend reversal.
The stock is taking a breather once again and has indicated another fresh round of momentum with much upside potential visible.
The analyst expects the targets of ₹362 and ₹375 levels and the stop loss should be ₹320.
The stock after the listing of IPO has witnessed a decent spurt and after resisting near ₹123, it corrected to some extent to take support near ₹96. It once again witnessed a prominent bullish candle pattern on the daily chart to improve the bias.
“We anticipate a second round of momentum in the coming days with the RSI indicator also indicating a trend reversal signalling a buy. We suggest buying the stock for an upside target of ₹125 and ₹136 levels, keeping the stop loss of ₹98,” said Koothupalakkal.
Axis Securities
Union Bank of India | Buying range: ₹129-126 | Target price: ₹139-145 | Stop loss: ₹122
On the weekly chart, Union Bank of India has been following an upward channel formation since mid-June 2023, finding recent support at the lower band, experiencing a sharp rebound, and currently advancing towards the upper band of the channel.
It also breached the small consolidation zone between ₹129-112 with a strong bullish candle, signalling the continuation of a medium-term uptrend.
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 has given a crossover above its reference line generating a buy signal.
HCL Technologies | Buying range: ₹1,510-1,480 | Target price: ₹1,625-1,700 | Stop loss: ₹1,430
On the weekly chart, HCL Technologies broke above the bullish flag pattern at ₹1,490 with a strong bullish candle, signalling the continuation of an uptrend.
The breakout is accompanied by an increase in volume activity, suggesting a surge in market participation.
The stock is establishing higher highs and higher lows while maintaining its position above the medium-term upward-sloping trendline, suggesting a continued uptrend.
The weekly strength indicator RSI is in a bullish mode and is holding above its reference line indicating a positive bias.
Oil & Natural Gas Corporation (ONGC) | Buying range: ₹220-215 | Target price: ₹235-245 | Stop loss: ₹209
On the weekly chart, ONGC has broken out above the multi-year resistance level at ₹215 with a bullish candle, signalling the continuation of a medium-term uptrend.
The prior resistance zone around ₹215 is expected to function as a support zone, aligning with the principle of change in polarity in technical analysis.
The stock has closed above the weekly upper Bollinger Band, signalling a medium-term buy opportunity.
The weekly RSI is consistently holding above the upward-sloping trendline, confirming the strength of the uptrend in prices.
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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: 15 Jan 2024, 11:29 AM IST
