Stocks to buy: The Indian stock market benchmark, Nifty 50, reached a new all-time high of 24,598 in early trading on Monday, July 15. This milestone comes as the index continues its upward trajectory, marking the sixth consecutive week of gains.
The index has been in a range lately due to the lack of fresh triggers. The healthy start of June quarter earnings and expectations of a pro-growth Budget support the market. However, concerns over valuations are growing.
“Valuations in India are moving to elevated levels. Investors have to be cautious about the excessive valuations in the momentum stocks which are moving to frothy levels,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
According to brokerage firm Axis Securities, if the Nifty 50 crosses and sustains above 24,600, it would witness buying, leading it to 24,800-25,000 levels. However, if the index breaks below the 24,400 level, it will witness sales and move to 24,200-24,000.
This week, Axis Securities expects Nifty 50 to trade in the range of 25,000-24,000 with a positive bias as the weekly Relative Strength Index (RSI) is moving upwards and above its reference line, indicating a positive bias.
Experts advise investors and traders to be prudent and bet on fundamentally and technically sound stocks. Based on the recommendations of several experts, here are 8 stocks that can rise 7-20 per cent in the next 3-4 weeks. Take a look:
Axis Securities
Dalmia Bharat | Previous close: ₹1,933.60 | Buying range: ₹1,925-1,887 | Target price: ₹2,113-2,150 | Stop loss: ₹1,803 | Upside potential: 11%
Dalmia Bharat has demonstrated a breakout above the falling channel at ₹1,855 on the weekly chart, signalling the onset of a medium-term uptrend.
The stock found support and bounced back at the previous swing low of ₹1,670, formed in early February 2023.
The weekly RSI broke above the downward-sloping trendline, confirming a breakout in price action.
It also gives a crossover above its reference line, generating a buy signal.
Britannia Industries | Previous close: ₹5,787.05 | Buying range: ₹5,750-5,636 | Target price: ₹6,160-6,285 | Stop loss: ₹5,460 | Upside potential: 9%
Britannia has confirmed a breakout above the cup and handle pattern at ₹5,600 on the weekly chart, indicating the continuation of the medium-term uptrend.
The increase in volume activity at the breakout signifies a surge in market participation.
It is positioned above the key short—and medium-term moving averages of 20, 50, 100, and 200 days, indicating a positive bias.
The weekly RSI is holding above its reference line, indicating a positive bias.
Birlasoft | Previous close: ₹732.35 | Buying range: ₹725-711 | Target price: ₹798-820 | Stop loss: ₹678 | Upside potential: 12%
Birlasoft has demonstrated a breakout above the consolidation zone pattern between ₹725 and ₹666 on the daily chart, indicating the continuation of the uptrend.
Volume dried during the consolidation period and then increased at the breakout, indicating a significant influx of participation.
The stock also recaptured the breakdown level during mid-April 2024 at ₹715, indicating a continuation of the uptrend.
The daily RSI crossover above its reference line has generated a buy signal.
Manappuram Finance | Previous close: ₹224.23 | Buying range: ₹222-218 | Target price: ₹252-260 | Stop loss: ₹204 | Upside potential: 16%
Manappuram Finance has demonstrated a breakout above the multi-year resistance of around ₹218 with a solid bullish candle on the weekly chart, indicating the continuation of the uptrend.
The stock took support at the 38 per cent Fibonacci retracement level of a rally from ₹81-199, positioned at ₹155, confirming a medium-term support base.
The stock forms higher highs and higher lows on the weekly chart and holds above the upward-sloping trendline, indicating a positive bias.
The weekly RSI is holding above its reference line, indicating positive bias.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Mangalore Refinery and Petrochemicals (MRPL) | Previous close: ₹240.21 | Buying range: ₹235-245 | Target price: ₹270 | Stop loss: ₹225 | Upside potential:12%
MRPL has been consolidating within a price range of ₹210-230 in recent weeks.
However, the stock has recently exhibited a decisive breakout, accompanied by substantial trading volume, indicating a potentially attractive buying opportunity at this juncture.
From a technical analysis perspective, the Daily MACD has formed a bullish crossover just above the zero line, further signalling a positive outlook for the stock.
“Based on these indicators, it is advisable to consider adding long positions within the ₹235-245 range, targeting an upside potential of ₹270. To manage risk, a stop loss should be set at ₹225 on a daily closing basis,” said Patel
Hikal | Previous close: ₹360.45 | Buying range: ₹335-350 | Target price: ₹425 | Stop loss: ₹315 | Upside potential: 18%
Between March 2023 and June 2024, Hikal had been consolidating within the approximate range of ₹260-320.
Recently, the stock broke out of this range with significant trading volume, making it an attractive buy opportunity.
Despite a rally of nearly 40 points post-breakout, it is recommended to purchase on any dips.
From a technical standpoint, the daily MACD has formed a bullish crossover just above the zero line, indicating a positive trend.
Birlasoft | Previous close: ₹732.35 | Buying range: ₹720-735 | Target price: ₹780 | Stop loss: ₹699 | Upside potential: 7%
Recently, Bsoft surpassed its critical resistance level of ₹720 and is now holding steady around the ₹730 mark.
This breakout, characterized by substantial trading volume, indicates the stock’s potential upward movement.
From a technical analysis standpoint, the daily RSI has rebounded from the 50 level, suggesting renewed strength and making the current price levels especially appealing to investors.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher
Dalmia Bharat | Previous close: ₹1,933.60 | Target price: ₹2,200 | Stop loss: ₹1,800 | Upside potential: 14%
The stock has indicated a positive bullish candle formation to indicate a breakout above the descending channel pattern.
It has moved past the important 100-period moving average (MA) at the ₹1,895 level to improve the bias and indicate a further rise in the coming days.
The RSI has shot up to indicate strength and has much upside potential to carry on with the positive move.
IRB Infrastructure Developers | Previous close: ₹68.36 | Target price: ₹82 | Stop loss: ₹64 | Upside potential: 20%
The stock has overall witnessed a rising trend in the last year, and recently, after a consolidation period, near the ₹65 level, it has picked up well to move past the significant 50EMA level of ₹66.50 to improve the bias and indicate a further rise in the coming days.
The RSI, indicating strength, is on the rise and has the potential to carry on with the positive move further ahead.
Voltas | Previous close: ₹1,520 | Target price: ₹1,730 | Stop loss: ₹1,435 | Upside potential: 14%
The stock has witnessed a strong bull run in the last six to seven months and is maintaining a solid uptrend. It has indicated a higher low formation on the daily chart and, with a decent pullback witnessed, has improved the bias to signal a further rise in the coming days.
The RSI has cooled off from the overbought zone and is currently well-placed, indicating a trend reversal to signal a buy. It can carry on with the positive move further ahead.
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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.
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