Stocks to buy this week: Wipro, Eicher Motors, IPCA Labs among 9 technical picks
Experts expected some consolidation in the market as most positives are already discounted in the market and valuations are high.
On the technical front, Anand James, Chief Market Strategist at Geojit Financial Services, pointed out that if the bulls choose to ride on the momentum, we could stretch as far as 22,400.
However, James believes a turn lower or sideways move is highly likely given how pronounced the negative divergence is on the directional moving indicator, and with 3D RSI peaking.
“That we are about 8.5 per cent above the 100 DMA (daily moving average) also supports this construct, as the last time we were more than 10 per cent above this benchmark was in late July 2023, a three-month consolidation followed. We will use 21,730 as a pivot to go with this construct this week,” said James.
Experts recommend buying technically and fundamentally sound stocks at the current juncture. Based on the recommendations of several experts, below are nine stocks that one can consider buying for the next three to four weeks. Take a look:
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Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Wipro | Target price: ₹530 | Stop loss: ₹440
Wipro has made a solid base near ₹400–420 levels. The time retracement is 0.886 approximately, along with a price retracement of 0.618 approximately on the monthly timeframe.
Additionally, it is sustaining above all major exponential moving averages. Moreover, monthly Stochastics have reversed from the 50 level, which is looking lucrative.
“We advise traders to go long in the stock in the range of ₹465–475 with a stop loss of ₹440 for the upside target of ₹530,” said Patel.
Since the last week or so, this counter has gained momentum. From a retracement perspective, alternate wave retracement comes exactly near 0.618 and 1.628 of its previous up moves, 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 100 per cent and price retracement is 0.786 per cent)
On the indicator front, the weekly RSI has reversed from 50 levels, which further confirms our bullish stance on the counter.
“One can buy the stock in the zone of ₹305–312 for a target of ₹355 and a stop loss of ₹285 on a daily closing basis,” said Patel.
Clean Science had been consolidating between ₹1,330 and ₹1,430. Recently, it broke out from the said levels and sustained above them.
Also, the bear trendline on a weekly scale has been violated, along with RSI and DMI weekly being in bullish mode, which is looking lucrative.
“We advise traders to go long in the zone of ₹1,525-1,550 with a stop loss of ₹1,450 and an upside target of ₹1,700,” Patel said.
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Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher
Torrent Power | Target price: ₹1,045 | Stop loss: ₹870
The stock has been in a strong uptrend for the last eight to nine months and recently after peaking out near ₹1,047 level.
It corrected to take support near ₹869 level which is a 50 per cent retracement of the recent rally witnessed from the end of last October.
There are signs of improvement with a pullback witnessed and with the RSI well placed, it has indicated a trend reversal to indicate further rise in the coming days.
Page Industries | Target price: ₹42,500 | Stop loss: ₹37,000
The stock has been in consolidation for quite some time maintaining the support near ₹36,600.
It has indicated a breakout above the resistance zone of ₹38,600 which is also where the confluence of significant 200 and 100 period MA (moving average) lies.
“The RSI is also indicating a trend reversal and has signalled a buy. With the chart looking attractive, we suggest buying and accumulating the stock for an upside target of ₹42,500, keeping the stop loss of ₹37,000,” said Koothupalakkal.
IPCA Laboratories | Target price: ₹1,230 | Stop loss: ₹1,020
The stock has witnessed a strong rally from the ₹680 level and witnessed a short correction thereafter, taking support near the important 50EMA (exponential moving average) of ₹1,050 level.
Currently, with a decent bullish candle pattern on the daily chart, it has improved the bias. The RSI, after cooling off from the overbought zone, has flattened out and is well placed indicating a trend reversal to signal a buy.
“With the chart looking good, we anticipate a second round of momentum to gain further and expect for next targets of ₹1,190 and ₹1,230 levels in the coming days, keeping the stop loss of ₹1,020 level,” said Koothupalakkal.
Gaurav Bissa, VP, InCred Equities
Zydus Lifesciences | Target price: ₹750 | Stop loss: ₹655
Nifty Pharma has been a strong outperformer in the last few months and Zydus Life has been a clear beneficiary in the pharma space.
It has been in a strong uptrend with formations of higher highs and higher lows. The stock has recently witnessed a bullish cup and handle pattern breakout which is a continuation pattern in nature.
“The stock has witnessed a bullish MACD crossover on weekly charts which can give a strong push to the prices towards ₹750 level,” said Bissa.
Eicher Motors | Target price: ₹4,500 | Stop loss: ₹3,900
Nifty Auto has been a consistent outperformer for the last couple of years with consistent formations of higher highs and higher lows. The index has witnessed a fresh breakout from a rising channel pattern on weekly charts which can push the index higher.
Eicher Motors has been one of the strongest and most consistent names in the auto space. It has sustained a strong breakout from a bullish triangle pattern on the weekly charts.
“The RSI is seen comfortably trading above the 70 level which is likely to keep the momentum strong and can push the stock towards ₹4,500 level,” said Bissa.
RIIL has been in a strong momentum in recent times. It has witnessed a 14-year box breakout on the weekly and monthly charts which can result in the start of a fresh uptrend.
It has witnessed strong volumes on weekly and monthly charts which supports the postulate of a robust upside in the coming weeks.
“The RSI has witnessed a fresh swing breakout on monthly charts along with a bullish MACD crossover which can push the stock toward ₹1,600 levels,” said Bissa.
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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: 01 Jan 2024, 11:42 AM IST
