Nifty dropped by 2%
Last week, the Nifty 50, which is a measure of how well India’s top 50 stocks are doing, dropped by more than 2%. This happened because investors were worried about how expensive the market has become, and they were uncertain about what the US might do with its interest rates.
People in India are still feeling cautious about the stock market because they’re waiting to see what decision the US Federal Reserve makes on Wednesday. Most experts think the Fed will leave interest rates as they are, but investors are interested in hearing what the Fed has to say about inflation (how prices are going up) and growth (how well the economy is doing).
“The week ahead, the global central bank’s monetary policy decision will get investors’ attention. The US Fed, Bank of Japan, and Bank of England will unveil their rate decisions. There is uncertainty over Fed rate cuts due to an increase in the US unemployment rate and higher than expected US inflation,” said Vinod Nair, Head of Research, Geojit Financial Services.
The Indian stock market is predicted to stay unstable for a short while. Experts advise investing in stocks that are strong both technically and fundamentally. Here are 12 stocks suggested by multiple experts that you might want to think about buying for the next three to four weeks. Have a look:
HDFC Life Insurance
LTP: ₹632.35
Buying range: ₹625-613
Target price: ₹665-685
Stop loss: ₹597
Upside potential: 8%
On the daily chart, HDFC Life recently broke free from a period of steadiness, marked by a ’rounded bottom’ pattern around ₹629, showing a positive trend.
The breakout saw increased volume, indicating strong participation and interest in the stock’s upward movement.
Moreover, HDFC Life is trading above key simple moving averages (SMA) such as the 20, 50, 100, and 200, confirming a positive trend in its price path.
Furthermore, the daily Relative Strength Index (RSI) is in bullish territory and stays above its reference line, suggesting a favorable outlook for the stock.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher Garden Reach Shipbuilders & Engineers
LTP: ₹760.75
Target price: ₹855
Stop loss: ₹740
Upside potential: 12%
The stock witnessed a steep fall recently from ₹850 and took support near ₹675 with a pullback witnessed.
Moving past the 200-period moving average (MA) level of ₹756 has slightly improved the bias to indicate further rise in the coming days.
The RSI also after arriving near the highly oversold zone has halted the slide and has indicated a trend reversal to signal a buy.
“With the chart looking good, we suggest buying the stock for the next targets of ₹820 and ₹855 levels in the coming days keeping a strict stop loss of ₹740,” said Koothupalakkal.
Gujarat State Fertilizers & Chemicals (GSFC)
LTP: ₹208.65
Target price: ₹254
Stop loss: ₹190
The stock’s price has gone down quite a bit in the last two months, starting from ₹322. Now, it seems like it might have reached a low point around ₹187-190.
There’s been a good bounce back, going above an important measure called the 200-period Moving Average (MA) at ₹200. This suggests that things might be looking up, and we might see more improvement in the next few days.
The Relative Strength Index (RSI), which helps us understand if a stock is overbought or oversold, has also dropped significantly, reaching a point where it’s considered very oversold. This could mean that the direction of the trend might change soon.
Chalet Hotels
LTP: ₹735.25
Target price: ₹850
Stop loss: ₹690
Upside potential: 16%
The stock price has been dropping steadily from around ₹890, but it found support near a significant measure called the 100-period Moving Average (MA) at ₹690.
Now, it seems like there might be a slight recovery to improve the overall direction. If the price breaks decisively above another measure called the 50 Exponential Moving Average (EMA) at ₹760, it could indicate a strong confirmation for further upward movement.
The Relative Strength Index (RSI), which shows whether a stock is overbought or oversold, stopped near a point where it was considered very oversold. This suggests that there might be a change in direction, signaling it’s a good time to buy.
Shriram Properties
LTP: ₹105.90
Target price: ₹120
Stop loss: ₹99
Upside potential: 13%
The stock’s price is currently hovering around an important support level of ₹100 according to the hourly charts.
This presents a good chance to buy the stock as suggested by its analysis on the daily and weekly charts, which show promising trends for potential growth.
Cochin Shipyard
LTP: ₹890.45
Buying range: ₹880-864
Target price: ₹1,045-1,085
Stop loss: ₹785
Upside potential: 22%
Cochin Shipyard has recently broken out of a falling channel pattern on the daily chart, marked by a strong bullish candle at ₹880. This suggests a reversal after profit booking.
Since the breakout, the stock has been gaining momentum and is expected to keep moving upward, maintaining its positive trend.
An important observation is that the stock has support above the 61.8% Fibonacci retracement level, situated at ₹733. This establishes a short-term base, indicating potential further upward movement.
Furthermore, the daily strength indicator RSI has crossed above its reference line, signaling a buy opportunity.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers ITC
LTP: ₹419.10
Target price: ₹475
Stop loss: ₹390
Upside potential: 13%
After hitting around ₹475 on January 4, 2024, ITC dropped significantly by about 75 points, which is nearly a 16% decrease.
However, for the following 18 trading days, ITC remained steady without further decline, trading between ₹400 and ₹416.
In the last trading session, there was noticeable interest in buying when the price was low, and the trading volume was high.
From a technical viewpoint, there’s a bullish pattern called AB=CD forming on ITC’s daily chart within the range of ₹400-416. Interestingly, this range also lines up with the 0.382 percent retracement level of a price swing that occurred between January 2023 and July 2023.
Moreover, the daily Relative Strength Index (RSI) indicator shows a pattern resembling a ‘W’ shape below the 30 level, suggesting a potentially good time to consider buying.
Sandhar Technologies
LTP: ₹485.30
Target price: ₹550
Stop loss: ₹465
Upside potential: 13%
The stock recently tested the support level called ‘Anchored VWAP’ at ₹480 on its daily charts, and it held up well.
Based on this, it’s expected that the upward trend in the stock, known as the bullish trend, will likely continue without major changes.
HEG
LTP (Last traded price): ₹1,882.15
Buying range: ₹1,870-1,834
Target price: ₹2,160-2,220
Stop loss: ₹1,700
Upside potential: 18%
HEG is showing a positive trend as it has broken out above a falling channel pattern at ₹1,850 on the weekly chart, indicating a bullish momentum.
During the formation of the pattern, the trading volume decreased, but it increased significantly when the breakout occurred, indicating increased market participation.
Additionally, the stock closing above the upper Bollinger band on the daily chart is considered a buy signal for the short term.
Moreover, the weekly strength indicator RSI has crossed above its reference line, which is seen as a buy signal.
People in India are still feeling cautious about the stock market because they’re waiting to see what decision the US Federal Reserve makes on Wednesday. Most experts think the Fed will leave interest rates as they are, but investors are interested in hearing what the Fed has to say about inflation (how prices are going up) and growth (how well the economy is doing).
Aegis Logistics
LTP: ₹381.25
Target price: ₹430
Stop loss: ₹355
Upside potential: 13%
The stock has found support at a measure called the 200-day exponential moving average (DEMA).
On a chart showing the stock’s movement over hours, there was a pattern called a bullish bat pattern in the price range of ₹360-370. This happened at the same time as the 200 DEMA.
Looking at the indicators, a measure called the hourly Relative Strength Index (RSI) showed a complicated pattern close to a point where the stock was considered oversold. This suggests that things might be looking up for the stock.
Riyank Arora, Technical Analyst, Mehta Equities Action Construction Equipment (ACE)
LTP: ₹1,241.10
Target price: ₹1,330 and ₹1,420
Stop loss: ₹1,190
Upside potential: 14%
The stock price has gone back down to test a support level called ‘Anchored VWAP’ at ₹1,220 and stayed above it, which is a good sign.
There’s a small barrier to its rise around ₹1,330.00. If it manages to go above this, the next challenge might be around ₹1,420.
Looking at the hourly charts, there seems to be a pattern where the lowest point reached is higher than before, happening around the ₹1,200 level.
Britannia Industries
LTP: ₹4,974.20
Target price: ₹5,250
Stop loss: ₹4,790
Upside potential: 6%
Recently, Britannia Industries’ stock price has been staying steady at about ₹4,800, which means it’s not going up or down much. This price seems to be a strong support level for the company. It matches up with a measure called the 200-day exponential moving average and it’s halfway down from where the price went up a while ago, between November 2023 and December 2023. This is shown in a graph.
Also, there’s a pattern forming in the chart called a bullish AB=CD pattern around the ₹4,800 level. This suggests that people in the market are feeling positive about the company’s stock.
Furthermore, another measure called the daily stochastic indicator is showing that there’s a difference in how the price is moving compared to how some other factors are moving. This difference suggests that there could be good things ahead for the stock.
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