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Purchase-worthy equities include Titan, LIC Housing Finance, and SAIL, which analysts predict will gain 4–16% over the next three to four weeks

Submitted by admin on June 19th, 2024

Invest in stocks: It seems that specialists working in technical fields notice that there is a kind of reluctance in the market. In the weekly chart of Nifty 50, there are ‘Doji’ candlestick formations were observed as stated by the brokerage firm Axis Securities. A Doji candle represents indecision between the buyers’ and the sellers’ parties.

Stocks to buy: The stock exchanges were buoyant in the week of June 10– 14 with the barometer of the Indian stock market the Nifty 50 following the global trend and rising by nearly 1% making a record high of 23,490. The index price decreased by approximately 40 in the previous session.

During four sessions of the week prior, the Nifty 50 was mainly positive, but it is unclear about new sources that could lift the indicator higher.

The government is back at the center in the hands of the BJP under the leadership of Modiji and the focus turns to policy announcements and the July budget.

Professionals working in the technical field observe that there are pointers to some sort of uncertainty in the market.

Axis Securities referred to the weekly chart of the Nifty 50, where the formation of the candlestick was in the ‘Doji’ shape. Doji candle indicates that both the buying and selling sentiments of the buyers are in a state of confusion.

“The chart pattern suggests that if the Nifty 50 crosses and sustains above the 23,600 level, it would witness buying, leading the index towards the 23,800-23,900 levels. However, if the index breaks below the 23,300 level, it will witness selling pressure, taking it towards 23,200-23,000,” said Axis Securities.

“The daily and weekly strength indicator Relative Strength Index (RSI) is moving upwards and quoting above its reference line, indicating a positive bias,” said Axis.

Based on Axis, this index may trade with a neutral to a bearish inclination in the 23,900 to 23,000 range during the week.

There are basically yeah short-term fluctuations predicted for the market even though analysts foresee a positive medium to long-term. Now, they recommend backing technically and fundamentally sound stocks; this is a result of the shaded implication of the, dubbed, ‘Speculative Stock List.’

Here is the list of eight companies that can advance 4-16% in the next three-four weeks according to different commentators. Look at this:

Natco Pharma | Previous close: ₹1,210.60 | Buying range: ₹1,185-1,163 | Target price: ₹1,296-1,330 | Stop loss: ₹1,113 | Upside potential: 10%

In particular, on the weekly chart, we can note that after preparing a cup and handle pattern, Natco Pharma has developed a breakout, and the formation of an upward impulse accompanied by an extremely powerful bullish candle indicates a clear beginning of an upward trend.

Volume activity of the breakout level cleared an increment and thus, there was an evolution in market participation.

In the weekly chart, it demonstrates a bullish signal exporting higher high and low with support from an upward rising channel.

It is now heading towards the upper band of trading range after being supported by the lower band before.

A purchase signal has been formed by the weekly strength indicator referred to as the Relative Strength Index (RSI), moving above the downward-sloping trendline.

LIC Housing Finance | Previous close: ₹731.65 | Buying range: ₹725-711 | Target price: ₹804-825 | Stop loss: ₹675 | Upside potential: 13%

This weekly chart of LIC Housing Finance also exhibits that it has now emerged above the consolidation zone of ₹680-550, further proving that medium-term up move phase is still valid.

Volume activity is usually subdued while forming patterns but rises during breakouts possibly pointing towards increased market participation.

Medium-term support was also established as the stock took support at the 38 percent Fibonacci retracement level of a move up from ₹315 to ₹672 which is at ₹540.

The RSI analysis has produced a purchase signal that arises from the weekly strength indicator having crossed the reference line.

Steel Authority of India (SAIL) | Previous close: ₹153.65 | Target price: ₹174 | Stop loss: ₹144 | Upside potential: 13%

This stock touched recently its higher level at ₹175 and there has been steep correction where ₹125 has provided some base. Further there was a subsequent decline after a major reversal to reclaim the 100-period moving average (MA) at ₹140.

It has supported the bullish bias by crossing above the 50EMA level of ₹153 on the daily chart and the formation of a bullish candle has also suggested that an up move is imminent in the near future then it would be an ideal buy.

Thus, the RSI is technically sound at these points and the attractiveness of the chart is restored.

Aether Industries | Previous close: ₹854.90 | Buying range: ₹835-860 | Target price: ₹965 | Stop loss: ₹795 | Upside potential: 13%

Aether industries further moved up from the prior support of 800 after the stocks gained nearly 80 points or nearly 9 percent adjustment.

Since weekly RSI has crossed over the negative slope line that has been in place for a full year and reflected a positive bias, this level corresponds with the lower Bollinger band and is a cue to a reversal.

Based on this, I suggest that investors should consider using ₹835-860 as the buy range and provided that there will be an uptrend movement, it is advised to have a target price of ₹965. Pricing: Patel has stated that a stop loss order near ₹795 that is, benchmarked on daily closing prices can effectively manage the risks of the move.

Mayur Uniquoters | Previous close: ₹659.75 | Buying range: ₹640-628 | Target price: ₹732-765 | Stop loss: ₹585 | Upside potential: 16%

In the coming week, Mayur Uniquoters maintained its uptrend formation on the weekly chart as it traded above a multiple resistance zone at Rs 622 with a strong bull lamp.

On the weekly chart shown below, it is clear that the stock is in a medium term up trend because the price is going up to form higher high low pattern.

The weekly upper Bollinger band was effectively closed and since the weekly bars are bullish indicating a medium-term buy signal.

Weekly strength indicator RSI generates a buy signal, it crossed up reference line and got crossed up trendline is downward slope.

Shiju Koothupalakkal is the technical research analyst in Prabhudas Lilladher Lemon Tree Hotels. Her previous close was ₹150 her current close has been rated as highly appealing at ₹145. 18. Her target price is ₹168 Her buy-sell recommendations are ₹157-₹188. Her stop loss is ₹ 137 is her stop loss. Possible outlook for her is 12%.

Expanding the period to the daily chart, we observe the constant growth of this stock with a solid ascending channel pattern.

“With the RSI on the rise, indicating strength, there is much upside potential from the current levels. We suggest buying the stock for an upside target of ₹160-168 levels, keeping the stop loss at ₹137,” said Koothupalakkal.

Titan Company | Previous close: ₹3,530.05 | Target price: ₹3,840 | Stop loss: ₹3,400 | Upside potential: 9%

The stock showed signs of a strong breakthrough over the declining trendline at ₹3,450, breaking above the ₹3,445 50EMA level.

Overcoming the 200-period MA at the ₹3,480 level strengthens the bias, indicating a potential increase in the next few days.

“With the RSI going strong with further upside potential visible from the current rate and with the chart technically looking good, we suggest buying the stock for an upside target of ₹3,680 and ₹3,840 levels in the coming days, keeping the stop loss of ₹3,400,” stated Koothupalakkal.
Jigar S. Patel, Anand Rathi Share and Stock Brokers’ Senior Manager of Equity Research

 Titan Company | Previous close: ₹3,530.05 | Buying range: ₹3,500-3,540 | Target price: ₹3,675 | Stop loss: ₹3,445 | Upside potential: 4%

Titan stock is now trading steadily above its previous swing high of ₹3,460, having just exceeded it at ₹3,500.

It has also found support in the vicinity of the 21-day and 200-day exponential moving averages (EMAs), which presents a compelling chance to purchase.

Regarding indicators, there appears to be a positive bias as the daily RSI has broken through a negative trendline that has held for the past five to six months.

 Jubilant Foodworks | Previous close: ₹530.65 | Buying range: ₹522-532 | Target price: ₹600 | Stop loss: ₹485 | Upside potential: 13%

A bull divergence on the daily Moving Average Convergence Divergence (MACD) indicator and a breach of a bearish trend line that had been in place for three to four months are Jubilant Foodworks’ two primary technical analysis indications.

When the stock price makes lower lows and the MACD indicator makes higher lows, this is known as a bull divergence and suggests that there may be a turnaround from a downtrend to an uptrend.

A possible change in the stock’s direction from bearish to bullish is indicated by the violation of the bearish trend line.