Stocks to buy: After three consecutive sessions of gains, Nifty 50 traded lower on Tuesday, March 26, amid weak global cues and the absence of fresh domestic triggers.
Nifty50 opened at 21,947.90 against its previous close of 22,096.75 and touched its intraday low of 21,947.55. Around 11:30 am, the index was 0.26 per cent down at 22,038.85.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services believes the market may consolidate this week in the absence of any known triggers for sharp up or down moves. Since the week is a truncated week of three trading days, volumes have dipped markedly indicating the absence of a significant directional move, Vijayakumar pointed out.
According to Axis Securities, if Nifty crosses and sustains above the 22,200 level, it would witness buying, leading the index towards 22,300-22,500 levels. However, if the index breaks below the 21,900 level, it would witness selling, taking the index towards 21,800-21,600.
Axis Securities expects Nifty to trade in the range of 22,500-21,600 with mixed bias this week.
Experts recommend buying technically and fundamentally sound stocks at the current juncture. Based on the recommendations of several experts, below are 12 stocks that one can consider buying for the next three to four weeks. Take a look:
Axis Securities
JSW Energy | Last traded price (LTP): ₹515.45 | Buying range: ₹510-500 | Target price: ₹575-590 | Stop loss: ₹470 | Upside potential: 14.5%
On the daily chart, JSW Energy has broken above the downward-sloping trendline at ₹505, indicating a positive bias.
The stock found support at the horizontal level around ₹450, formerly a resistance, now acting as support due to the principle of polarity.
It found support at ₹475, which corresponds to the 50 per cent Fibonacci retracement level of the rally from ₹453 to ₹502, forming a short-term support around that level.
The daily strength indicator RSI has given a crossover above its reference line, generating a buy signal.
PB Fintech (Policybazaar) | LTP: ₹1,152.10 | Buying range: ₹1,160-1,138 | Target price: ₹1,285-1,350 | Stop loss: ₹1,080 | Upside potential: 17%
Policybazaar demonstrates a bullish breakout above the small falling channel pattern at ₹1,145 on the weekly chart, signalling a positive bias.
The stock is establishing a higher high-low pattern and maintaining its position above an upward-sloping trendline, indicative of an uptrend in the medium term.
Additionally, the stock is maintaining its position above the 20, 50, 100, and 200 simple moving averages (SMA), further indicating a positive bias in its price trend.
The weekly Relative Strength Index (RSI) is in bullish mode, holding above its reference line, suggesting a positive bias in the stock.
Cummins India | LTP: ₹2,930.80 | Buying range: ₹2,920-2,862 | Target price: ₹3,355-3,430 | Stop loss: ₹2,660 | Upside potential: 17%
On the weekly chart, Cummins India has broken out of a five-week consolidation zone between ₹2,835-2,650, accompanied by a robust bullish candle indicating the continuation of the medium-term uptrend.
The stock is currently trending within a medium-rising channel, having recently found support at the lower band, and is now positioned to move towards the upper band of the channel.
The stock closed above the upper Bollinger band and generated a buy signal.
The weekly strength indicator RSI, having given a crossover above its reference line, generated a buy signal.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Borosil Renewables | LTP: ₹523.60 | Target price: ₹600 | Stop loss: ₹475 | Upside potential: 15%
After surging to the level of ₹670 on February 1, 2024, Borosil Renewables underwent a notable downturn, witnessing a substantial decline of around 189 points, or about 28 per cent.
However, over the subsequent 26 trading sessions, it has demonstrated resilience, avoiding further downturns and instead consolidating within a range spanning from ₹480 to ₹515.
From a technical perspective, there has been the formation of a bullish AB=CD pattern evident on the daily chart within this price range of ₹480-515.
Interestingly, this range aligns with the 0.618 per cent retracement level of a price swing observed between October 2023 and January 2024.
Moreover, on a daily scale, the Relative Strength Index (RSI) has surpassed its bearish trend line, indicating a potentially attractive buying opportunity.
“It may be prudent to consider buying within the range of ₹510-525, targeting an upside of ₹600, while setting a stop loss near ₹475 on a daily closing basis,” said Patel.
Coal India | LTP: ₹431.95 | Target price: ₹465 | Stop loss: ₹408 | Upside potential: 8%
From a technical perspective, a bullish AB=CD pattern has emerged on the daily chart of Coal India within the price range of ₹410-420.
Remarkably, this range aligns with the 0.50 per cent retracement level of a price swing observed between January 2024 and February 2024.
Furthermore, a bullish cross has been observed on the two-hourly Stochastic indicator, signalling a potentially attractive buying opportunity.
“Investors may consider initiating long positions within the ₹420-435 zone, targeting an upside objective of ₹465. It’s advisable to set a stop loss near ₹408 on a daily closing basis to manage downside risk effectively,” said Patel.
Bajaj Finance | LTP: ₹6,760.90 | Target price: ₹7,400 | Stop loss: ₹6,350 | Upside potential: 9.5%
Bajaj Finance experienced a significant decline near the ₹8,200 mark on October 6, 2023, shedding around 2,000 points.
However, it stabilized within a range of ₹6,400 to ₹6,600, avoiding further declines.
There was significant buying interest and substantial trading volume during the previous week.
A bullish AB=CD pattern appeared on the daily chart, aligning with the 0.618 per cent to 0.707 per cent retracement levels of a price swing between March and October 2023.
The daily stochastic indicator formed a bullish divergence, signalling a potential buying opportunity.
“One can buy the stock in the zone of ₹6,600-6,800 with an upside target of ₹7,400 and a stop loss would be placed near ₹6,350 on a daily close basis,” said Patel.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher
Olectra Greentech | LTP: ₹1,785.65 | Target price: ₹2,050 | Stop loss: ₹1,630 | Upside potential: 15%
The stock after the decent erosion has shown signs of bottoming out near ₹1,560 and after some consolidation, it indicated stability.
Currently, a positive candle formation on the daily chart, moving past the 50EMA (exponential moving average) level of ₹1,775, has shown improvement in bias, indicating a further rise in the coming days.
The RSI has indicated a trend reversal to signal a buy.
“We suggest buying the stock for an upside target of ₹2,050 and ₹2,170 levels, keeping the stop loss of ₹1,630,” said Koothupalakkal.
Power Grid Corporation of India | LTP: ₹275.75 | Target price: ₹307 | Stop loss: ₹257 | Upside potential: 11%
The stock, after the short correction, maintained the support near ₹257 and currently, with a positive candle formation on the daily chart, moving past the important 50EMA level of ₹267, a pullback has been witnessed with improved bias. The RSI also indicated a trend reversal, signalling a buy.
Parag Milk Foods | LTP: ₹202.60 | Target price: ₹225 | Stop loss: ₹190 | Upside potential: 11%
The stock has witnessed a decent correction from the peak of ₹290.
It stabilised near the important 200 period MA (moving average) of ₹198 with support maintained around ₹190.
A positive candle formation on the daily chart has slightly improved the bias moving past the 200 period MA of 198.
The RSI also flattened out after the slide, indicating a trend reversal to signal a buy.
Riyank Arora, Technical Analyst at Mehta Equities
Indus Towers | LTP: ₹271.30 | Target price: ₹295 | Stop loss: ₹260 | Upside potential: 9%
The stock has given a good breakout above its recent swing high resistance mark of ₹271.35. In the last 30 minutes of the trading session, the stock rose nearly 3 per cent, rising from ₹268.00 and hitting the 10 per cent circuit mark of ₹275.20.
“With the ADX on daily charts being at 67.98, the overall momentum looks strong for potential upside targets of ₹295, with a strict stop loss to be kept at ₹260 to manage risk,” said Arora.
SJVN | LTP: ₹122.90 | Target prie: ₹137.50 and ₹155.50 | Stop loss: ₹112.50 | Upside potential: 27%
The stock is witnessing a tight volatility contraction pattern on its daily charts, consolidating between the ₹98 to ₹130 zone for the last month.
As per anchor VWAP, immediate support is placed at the ₹115 mark and immediate resistance is around ₹131.
“With the ADX being at 9.70, momentum is very low, and we can expect a VCP breakout in the few upcoming sessions. A strict stop loss should be kept at ₹112.50 for potential upside targets of ₹137.50 and ₹155 on SJVN,” said Arora.
Juniper Hotels | LTP: ₹505.45 | Target price: ₹620 | Stop loss: ₹469 | Upside potential: 23%
Juniper Hotels has given a good breakout above its recent swing high mark of ₹503.70 on its daily and weekly charts.
“With the stock giving a weekly closing around ₹505.45 and the stock trading well above its five-period and nine-period EMA, the momentum looks strong for a potential target of ₹620 and above, with a set stop loss at ₹469,” said Arora.
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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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