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9 stocks look promising in the next 3-4 weeks: Analysts think

Submitted by admin on June 15th, 2024

Nifty 50, which is the accepted index of the Indian stock market, jumped more than 3 per cent last week as hopes for policy continuity, political stability and upward growth curve are alive. Furthermore, the RBI’s upward revision of growth prediction for financial year 2025 and restrained signal that they may consider its monetary policy in their next meeting in August also lifted the market sentiment.

According to experts, the Nifty 50 created a small bearish candle forming a lower shadow on the weekly chart, reflecting lower-level support.

Axis securities observed on the chart pattern that if the Nifty surpasses 50 crores and sustains above the 23, 400 benchmark, it would be up for grabs, which can take the index up to 23, 500-23, 800 levels. However, if the index dips below the 23, 000 mark, it would experience selling, notching the index down to 22, 800-22,600.

“For the week, we expect Nifty to trade in the range of 23,700-22,600 with a positive bias. The daily and weekly strength indicator RSI (Relative Strength Index) is moving upwards and is quoting above its reference line, indicating a positive bias,” said Axis Securities.

All eyes were firmly fixed on the outcome of the US Fed meeting on the last Wednesday whereas the medium to long-term outlook of the market remains attractive. Global cues, macroeconomic indicators, and potential government policy announcements will have short-term influence on the market.

Experts recommend betting on technically and fundamentally sound stocks, given the market structure. Based on many experts’ recommendation, followings are nine stocks that are likely to experience a 6-15 per cent hike in the upcoming 3-4 weeks.

On the weekly chart, Tech Mahindra has broken a medium-term downward-slopping trendline at Rs 1, 350 with a powerful bullish candle, implying the starting of an uptrend. On the daily chart, it shows a bullish trend, reflecting higher highs and lows, and receiving support from an upward-rising channel.

Off late, it got support at the lower band and is now proceeding towards the upper band. The weekly RSI has provided a crossover above its reference line and broken through the dipping trendline, therefore generating a purchase signal.

Raymond | Buying range: ₹2,385-2,337 | Target price: ₹2,713-2,830 | Previous close: ₹2,471.65 | Stop loss: ₹2,185 | Upside potential: 15%

Raymond has claimed a breakout at Rs 2, 300 above the rounded bottom pattern on the weekly chart with a strong bullish candle, implying a positive outlook.

Volume activity shows a tendency to decline during pattern formation while increased activity is observed at the breakout, implying amplified market participation.

The stock is hovering above key moving averages of 20, 50, 100 and 200 days, implying an uptrend in short run and medium run as well.

The weekly strength indictor RSI hovers above its reference line, implying a positive bias.

Eris Life Sciences | Buying range: ₹980-962 | Target price: ₹1,065-1,113 | Previous close: ₹994.45 | Stop loss: ₹925 | Upside potential: 12%

On the weekly chart, Eris has registered a breakout above the ₹965-800 consolidation space, with a solid bullish candle implying the uptrend’s contamination.

The volume activity surged at the breakout, showing an influx of market contribution at the breakout level. The stock got support at the 38 per cent Fibonacci retracement level of a rally ranging from ₹551 to ₹972, pegged at ₹814, which confirms a medium-term support base.

RSI, the weekly strength indicator, has provided a crossover above its reference line, offering a signal for purchase.

Kotak Mahindra Bank | Buying range: ₹1,730-1,760 | Target price: ₹1,850 | Previous close: ₹1,753.70 | Stop loss: ₹1,690 | Upside potential: 6%

After getting closer the ₹1,926 mark on December 18, 2023, Kotak Mahindra Bank reported a significant downturn, with a drop of roughly 20 per cent or about 380 points.

However, Kotak Mahindra Bank showed resilience last week by avoiding further decline and instead drove backwards around the lower Bollinger band.

In the last trading session, noteworthy purchase activity was observed at lower price levels, indicating investor interest in buying the stock at these levels.

From a technical viewpoint, the monthly stochastics indicator has provided a bull cross, suggesting a potential shift in momentum and showing an excellent buying opportunity.

“Traders are advised to consider buying the stock within the range of ₹1,730-1,760, with an anticipated upside target of ₹1,850, keeping a stop loss at ₹1,690 based on a daily closing price,” stated Patel.

UPL | Buying range: ₹525-545 | Target price: ₹590 | Previous close: ₹539.75 | Stop loss: ₹499 | Upside potential: 9%

After the duration of consolidation ranging from ₹505-530, UPL has successfully broken out of a bearish trendline surviving for about five months.

The stock comfortably managed to hold its position above this trendline, suggesting a strong upward move. From the perspective of an indicator, the weekly stochastics have given a bull cross close to 60 levels, which demonstrates a positive sign for potential gains.

“We recommend that traders and investors consider taking a long position in the range of ₹525-545. The target for this upward move is ₹590, with a stop loss at ₹499 based on a daily closing price,” said Patel.

Divi’s Laboratories | Buying range: ₹4,480-4,530 | Target price: ₹5,000 | Previous close: ₹4,524.05 | Stop loss: ₹4,260 | Upside potential: 11%

In the on-going month, Divi’s Labs has exceeded its last peak at. ₹4,468.

This breakthrough is important as it suggests that the stock has conquered last resistance levels and is now well positioned for potential gains.

Divi’s Labs’s ability to maintain its price above this range strengthened the possibility of continued upward movement.

From the perspective of technical analysis, the weekly stochastic oscillator helps identify conditions of overbuy or oversale and has created a reverse motion at the 55 level and demonstrated a bullish crossover.

The crossover happens when the shorter-term stochastic line surpasses above the longer-term line – a reflection of surging purchase pressure and strong bullish outlook.

Tata Motors | Target price: ₹1,110 | Previous close: ₹970.50 | Stop loss: ₹917 | Upside potential: 14%

The stock has suggested a descending channel breakout above ₹947 level.

It has exceeded exponential moving average i.e. S0EMA level of ₹960 for bias improvement.

The RSI has been floating near the oversold zone, suggesting a trend reversal to give a buy signal with much upside potential that is evident from the current levels.

“The stock has been underperforming for quite some time, and currently, with the chart looking attractive and risk-reward favourable, we suggest buying the stock for an upside target of ₹1,110, keeping the stop loss of ₹917,” said Koothupalakkal.

Bharat Electronics (BEL) | Target price: ₹320 | Previous close: ₹283.20 | Stop loss: ₹252 | Upside potential: 13%

 On the daily chart, the stock has maintained an overall strong uptrend.

Off late, a correction from ₹323 has obtained support near ₹230 level and suggested a good pullback to surpass the significant 50EMA level of ₹248 for bias improvement.

The RSI has also calmed down from the overbought zone.

It has steadily declined and maintains its position with much upside potential that is clearly evident from the current rate to continue the upward momentum.

Larsen & Toubro (L&T) | Target price: ₹3,920 | Previous close: ₹3,532.50 | Stop loss: ₹3,300 | Upside potential: 11%

The stock has recently experienced a steep decline from the peak of ₹3,919 with support near ₹3,175.

It made strong recovery to surpass the important 200-period MA (moving average) at ₹3305 level, experiencing further pullback, bettering the bias, and registering a positive move in the coming days.

The RSI has calmed down significantly from the overbought space and is well-positioned technically at current levels, transforming the chart into an appealing one.