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While the ongoing quarterly numbers of India Inc. are the key focus point of the market, this week’s Fed meeting is also a critical factor that will influence market mood.
There is much uncertainty on the rate cut front as inflation remains sticky, while the first-quarter US GDP data showed growth is losing steam in the world’s largest economy. The market seems to have fairly discounted the possibility of no rate cuts by the Fed in the near future.
“Data from the US reflects the weakening of the US economy. Q1 GDP growth has come lower than expected at 1.6 per cent but the Fed is unlikely to cut rates in the next couple of meetings since inflation continues to remain hot. The core PCE has jumped to 3.7 per cent against the expectation of 3.4 per cent, leaving the Fed in no position to cut rates in the near future,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The dollar’s sustained rise against its major global peers, foreign capital outflow and geopolitical tensions are expected to keep the market sentiment low back home.
Market experts suggest picking only quality stocks for the long term while for the short term, one can look at the stocks with strong technical indicators. Based on the recommendations of several experts, here are 10 stocks that can rise 9-17 per cent in the next 3-4 weeks. Take a look:
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
ITC | Previous close: ₹439.95 | Target price: ₹480 | Stop loss: ₹412 | Upside potential: 9%
After reaching the ₹475 mark on January 4, 2024, ITC experienced a significant decline of approximately 75 points, or 16 per cent.
However, in the subsequent 18 trading sessions, ITC showed stability by avoiding further declines and consolidating within a range of ₹400-416.
In the previous trading session, notable buying interest was observed at lower levels, accompanied by substantial trading volume.
There is the formation of a bullish AB=CD pattern on the daily chart of ITC within the mentioned price zone of ₹400-416.
This zone also coincides with the 0.382 per cent retracement level of a price swing that occurred between January 2023 and July 2023.
The weekly Relative Strength Index (RSI) has reversed from 45 levels, which suggests a potentially lucrative buying opportunity.
“One can buy this stock in the zone of ₹430-440 with an upside target of ₹480 and a stop loss should be placed near ₹412 on a daily close basis,” said Patel.
Navin Fluorine International | Previous close: ₹3,308.45 | Target price: ₹3,700 | Stop loss: ₹3,095 | Upside potential: 12%
Following its double top formation near the ₹4,900-4,800 zone, Navin Fluorine experienced a significant downturn, shedding nearly 2,000 points, or 41 per cent.
However, in the last five to six trading sessions, it found support near the ₹3,000 mark.
Concurrently, there is a bullish crab pattern on Navin Fluorine’s daily chart, signalling a potential reversal in trend.
Moreover, “regular bull divergence” has been identified on the daily scale of the (RSI), indicating strengthening bullish momentum.
“Based on these technical indicators, investors may consider initiating long positions within the range of ₹3,270-3,320. The upside target for this trade is set at ₹3,700. To manage risk, a stop loss order should be placed near ₹3095, helping to limit potential losses in case the trade doesn’t perform as expected,” said Patel.
Piramal Enterprises (PEL) | Previous close: ₹925.05 | Target price: ₹1,055 | Stop loss: ₹845 | Upside potential: 14%
In September 2023, PEL reached its zenith, soaring to the level of ₹1,140.
However, it subsequently endured a substantial downturn, plummeting by almost 334 points, or nearly 29 per cent.
The stock seems to have discovered a level of support within the bracket of ₹820-850, suggesting a potential stabilisation in its price movement.
Notably, recent market observations have unveiled the formation of a double bottom pattern on the daily chart, accompanied by a bear-trendline violation on the weekly RSI —a promising indication for traders.
This confluence of technical signals presents an enticing opportunity for market participants.
“Traders are advised to contemplate initiating long positions within the range of ₹900-930. The target for this bullish trade is positioned at ₹1,055, representing a potential upside opportunity. To manage risks effectively, it is recommended to set a stop loss level at ₹845, to be evaluated based on daily closing prices,” Patel said.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher
Rail Vikas Nigam (RVNL) | Previous close: ₹289.85 | Target price: ₹340 | Stop loss: ₹270 | Upside potential: 17%
The stock has indicated a triangular pattern breakout above the ₹260 level.
It has gained strength, picking up well from the significant 50EMA (exponential moving average) level of ₹252, and has moved past the previous peak of ₹271 to strengthen the trend further.
Further rise is anticipated with the RSI rising; it spiked after the consolidation period, signalling a buy with much upside potential visible from current levels.
Bajaj Auto | Previous close: ₹8,965.50 | Target price: ₹9,840 | Stop loss: ₹8,540 | Upside potential: 10%
The stock has indicated a positive bullish candle after the gradual slide, taking support near the ₹8,640 level, maintaining above the significant 50EMA level of ₹8,540 to improve the bias.
The RSI is well placed and has indicated a trend reversal to signal a buy with much upside potential.
Indian Railway Finance Corporation (IRFC) | Previous close: ₹158.05 | Target price: ₹180 | Stop loss: ₹145 | Upside potential: 14%
The stock has been in a rangebound consolidation period, and once again, from the level of ₹135, it has picked up to move past the important 50EMA level of ₹141.50.
The stock is expected to perform well in the coming days amid a triangular formation breakout indicated on the daily chart.
With the trend gaining strength along with the RSI on the rise showing improvement, there is a trend reversal indicated signalling a buy and it has potential to carry on with the positive move further ahead.
Axis Securities
Divi’s Laboratories | Previous close: ₹4,025.35 | Buying range: ₹4,000-3,920 | Target price: ₹4,320-4,450 | Stop loss: ₹3,780 | Upside potential: 11%
Divi’s Laboratories has demonstrated a breakout above the inverted head and shoulders pattern at ₹4,000 on the weekly chart, suggesting the onset of an uptrend.
The stock closing above the weekly upper Bollinger Band has generated a medium-term buy signal.
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 RSI holds above its reference line, indicating positive bias.
Housing & Urban Development Corporation (HUDCO) | Previous close: ₹228.10 | Buying range: ₹222-218 | Target price: ₹252-265 | Stop loss:204 | Upside potential: 16%
HUDCO has shown a breakout above the consolidation zone between ₹220-165 on the weekly chart, signalling the continuation of the medium-term uptrend.
The stock has found support above the 38 per cent Fibonacci retracement level of the rally from ₹70 to ₹226 at ₹165, establishing a medium-term base that may support further upward movement.
Additionally, the stock has been 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 has given a crossover above its reference line, generating a buy signal.
GMR Airports Infrastructure | Previous close: ₹90.79 | Buying range: ₹90-87 | Target price: ₹98-103 | Stop loss: ₹85 | Upside potential: 13%
On the weekly chart, GMR Airports Infrastructure stock has broken out above the descending triangle pattern at ₹87 with a strong bullish candle, signalling the continuation of the uptrend.
During pattern formation, volume activity tends to decline, while at the breakout, there is an increase in activity, indicating an influx of market participation.
Currently, the stock is trending within a medium-term rising channel, recently finding support at the lower band of the channel and now moving towards the upper band.
The weekly RSI has given a crossover above its reference line, generating a buy signal.
Jindal Saw | Previous close: ₹559 | Buying range: ₹550-540 | Target price: ₹609-625 | Stop loss: ₹513 | Upside potential: 12%
On the weekly chart, Jindal Saw has broken out above the consolidation zone between ₹560-400 with a strong bullish candle, signalling the continuation of the uptrend.
Volume activity increases at the breakout, indicating an influx of market participation.
Additionally, the stock forms higher highs and lows while holding above the medium-term uptrend, indicating a positive bias.
The weekly RSI has given a crossover above its reference line, generating a buy signal.
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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 29 Apr 2024, 10:05 AM IST
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