Stocks to buy: Last week, the Indian stock market benchmark, Nifty 50, surged by over 2%, marking the fourth consecutive week of gains. This upward momentum was driven by strong performances from key heavyweights, including Reliance Industries, HDFC Bank, and Mahindra & Mahindra.
The Nifty 50 formed a long bullish candle on the weekly chart and closed above the previous week’s high, indicating a positive bias.
According to brokerage firm Axis Securities, the chart pattern suggests that if the Nifty 50 crosses and sustains above the 24,200 level, it would witness buying, leading the index towards the 24,500-24,600 zone. However, if the index breaks below the 23,900 level, it would witness selling, taking it to the 23,800-23,600 levels.
The brokerage firm pointed out that the daily and weekly strength indicator Relative Strength Index, or the RSI, is moving upwards and is quoting above its reference line, indicating a positive bias.
Axis Securities expects the Nifty 50 to trade in the range of 24,600-23,600 with a positive bias this week.
The market benchmark may also hit a new record high this week, but it lacks fresh riggers to sustain and extend the gains. All eyes are now on the upcoming Budget and the progress of the monsoon.
Experts suggest betting on fundamentally and technically sound stocks at the current juncture. Based on the recommendations of several experts, here are 10 stocks that can rise 4-15 per cent in the next 2-3 weeks. Take a look:
Axis Securities
Reliance Industries | Previous close: ₹3,130.80 | Buying range: ₹3,100-3,038 | Target price: ₹3,240-3,330 | Stop loss: ₹2,985 | Upside potential: 6%
Reliance has demonstrated a breakout above the ₹3,035-2,725 consolidation zone on the weekly chart, indicating the continuation of the medium-term uptrend.
The volume activity increased at the breakout, indicating a surge in market participation at that level.
The stock took support at the 38 per cent Fibonacci retracement level of a rally from ₹2,220 to ₹3,025, positioned at ₹2,725, confirming a medium-term support base.
The weekly RSI has given a crossover above its reference line, generating a buy signal.
Solara Active Pharma Sciences | Previous close: ₹544.90 | Buying range: ₹525-515 | Target price: ₹600-625 | Stop loss: ₹480 | Upside potential: 15%
Solara has demonstrated a breakout above the rounded bottom pattern at ₹507 levels with a strong bullish candle on the weekly chart, indicating a positive bias.
The stock is trending in a higher high-low pattern on the daily chart, indicating an uptrend in the short term as well.
The stock closed above the weekly upper Bollinger band, generating a medium-term buy signal.
The weekly RSI has broken above the downward-sloping trendline, generating a buy signal.
Apollo Tyres | Previous close: ₹541.90 | Buying range: ₹535-525 | Target price: ₹574-595 | Stop loss: ₹508 | Upside potential: 10%
Apollo Tyres is displaying a bullish trend on the weekly chart, characterised by higher highs and higher lows, supported by an upward-rising channel.
It took support at the lower band recently and is now heading towards the upper band.
The stock forms a descending triangular pattern within a channel formation and experiences a breakout at the 500 level, indicating a continuation of the uptrend.
It is positioned above key short and medium-term moving averages of 20, 50, 100, and 200 days, indicating a positive bias.
The weekly RSI strength indicator has crossed above its reference line and broken through the downward-sloping trendline, generating a buy signal.
Affle (India) | Previous close: ₹1,343.70 | Buying range: ₹1,320-1,294 | Target price: ₹1,460-1,500 | Stop loss: ₹1,230 | Upside potential: 12%
Affle (India) has exhibited a breakout above a two-and-a-half-year symmetrical triangle pattern at the ₹1,308 level on the weekly chart, signalling the onset of an uptrend.
During the pattern formation, volume activity tended to decline, while at the breakout, there was an increase in activity, indicating an influx of market participation.
The stock closed above the weekly upper Bollinger band, generating a medium-term buy signal.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Nestle India | Previous close: ₹2,551.65 | Buying range: ₹2,530-2,555 | Target price: ₹2,650 | Stop loss: ₹2,480 | Upside potential: 4%
Recently, Nestle India has shown significant technical resilience by finding support around the ₹2,500 mark, a critical support zone for the stock.
This support level is crucial as it has historically acted as a strong floor, preventing the stock from declining further.
Moreover, the stock has formed a rounding bottom pattern near this zone, which is typically a bullish signal indicating a potential reversal of a downtrend.
Adding to the bullish outlook, the RSI on the daily chart has bounced back from the 50 level.
The RSI is a momentum indicator, and a reversal from the 50 level suggests renewed buying interest and potential upward momentum.
SBI Life Insurance Company | Previous close: ₹1,491.95 | Buying range: ₹1,475-1,495 | Target price: ₹1,565 | Stop loss: ₹1,445 | Upside potential: 5%
In recent days, SBI Life Insurance Company stock has been consolidating within the ₹1,440-1,480 range.
This consolidation phase suggests that the stock was undergoing a period of accumulation or stabilisation after prior movements.
SBI Life has recently broken out of this consolidation range and is now sustaining levels above it, indicating a potential upward trend.
The consolidation occurred around the 21-day, 50-day, and 100-day exponential moving averages (DEMA), which is a positive technical sign.
These moving averages are significant because they represent different periods of price action, and consolidation around these levels suggests strong support and stability.
The RSI on the daily chart has rebounded from the 50 level. The RSI is a momentum oscillator, and a bounce from the 50 level typically signifies increasing buying pressure and a potential upward trend.
Oil & Natural Gas Corporation (ONGC) | Previous close: ₹274.20 | Buying range: ₹272-276 | Target price: ₹300 | Stop loss: ₹260 | Upside potential: 9%
Recently, ONGC experienced a reversal from its support level at ₹265, which coincides approximately with its 100-DEMA.
This alignment enhances ONGC’s attractiveness at its current levels, as the 100 DEMA is a significant technical indicator used to assess the stock’s medium-term trend.
The Moving Average Convergence Divergence (MACD) indicator on the daily chart has shown bullish divergence during the previous correction phase, indicating that the stock’s downward momentum was weakening.
The MACD has formed a bullish cross near the zero line, which typically signals the start of a new upward trend. These technical indicators support a bullish outlook for ONGC.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher
Tata Motors | Previous close: ₹989.75 | Target price: ₹1,110 | Stop loss: ₹925 | Upside potential: 12%
The stock has been in a consolidation phase for quite some time, moving within a range.
Recently, after a short period of correction, it took support near the ₹947 level and indicated a positive candle formation on the daily chart, witnessing a pullback moving past the confluence of significant moving averages of 50EMA and 100-period moving average (MA) levels at ₹967 to improve the bias.
The RSI is currently well-placed and has indicated a trend reversal, signalling a buy with much upside potential visible from the current levels.
“The stock has been underperforming for quite some time, and currently, with the chart looking attractive, we suggest buying the stock for an upside target of ₹1,110, keeping the stop loss of ₹925,” said Koothupalakkal.
Colgate Palmolive (India) | Previous close: ₹2,843.15 | Target price: ₹3,070 | Stop loss: ₹2,720 | Upside potential: 8%
The stock overall has been in a rising trend, maintaining a strong upward bias.
Recently, it witnessed a short correction from the ₹3,000 level, taking support near the 50EMA level at ₹2,790 and, thereafter, witnessing a pullback to improve the bias.
The RSI is well-placed and indicates a perfect trend reversal after the short correction period.
Cooling off from the overbought zone, RSI has signalled a buy with much upside potential.
Hero MotoCorp | Previous close: ₹5,579.60 | Target price: ₹6,150 | Stop loss: ₹5,340 | Upside potential: 10%
The stock has witnessed a short correction period from the peak near ₹5,895, taking support near ₹5,390 level to form a higher low formation pattern on the daily chart.
A decent pullback has improved the bias to indicate a further rise in the coming days. The RSI has cooled off from the highly overbought zone and is well-placed, indicating a trend reversal to signal a buy.
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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
