Experts advise adopting a stock-specific strategy and propose acquiring nine appealing stocks.
Nifty 50 declined by approximately 1% last week due to various challenges, including a sharp increase in US Treasury yields, underwhelming Q2 earnings, the Israel-Hamas conflict, and the anticipation of additional rate hikes by the US Federal Reserve. As of October 20, the benchmark index has risen by about 8% this year.
Experts remain optimistic about the Indian market in the long term due to the strong outlook for the Indian economy. However, global factors, such as US interest rates and geopolitical tensions, will continue to be critical considerations for the domestic market.
Expectations suggest that volatility will persist in the current holiday-shortened week, primarily due to ongoing earnings reports and the scheduled expiration of October derivatives contracts.
On a technical note, Ajit Mishra, Senior Vice President of technical research at Religare Broking, noted that the Nifty has been trading within the range of 19,300 to 19,850 for nearly a month and is now trending lower after retesting the upper boundary. Mishra believes that further weakness in the banking sector, combined with a resumption of the global decline, could push the index lower, with the range of 19,200 to 19,450 serving as a crucial support zone.
Mishra also mentioned that select heavyweights in the auto, FMCG, pharma, and realty sectors may provide buying opportunities, and he suggests that traders align their positions accordingly and consider hedged trades.
Given the current market challenges, experts recommend taking a stock-specific approach. Here are nine stocks that experts suggest considering for the next three to four weeks, as they appear attractive based on technical analysis.
Also Read : Kotak Mahindra’s ₹537 Crore Acquisition of Sonata Finance Approved by RBI
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
City Union Bank (CUB) | Buying range: ₹134-138 | Target price: ₹168 | Stop loss: ₹124
CUB has faced consistent downward pressure for a while, but it’s currently hovering around a critical support level. In the past, the stock rebounded strongly from this point, resulting in a surge towards ₹200. When we examine the weekly chart, we observe a breakout from a trading range accompanied by significant trading volume, which appears to be quite appealing.
“We recommend that traders consider taking a long position in the stock within the price range of ₹134-138, maintaining a stop loss at ₹124, and aiming for a target of ₹168,” Patel suggested.
Sterlite Technologies | Buying range: ₹160-165 | Target price: ₹200 | Stop loss: ₹145
For the last three months, this stock has been consolidating in the range of ₹145-155. Recently it gave a clean breakout from the said range and it is currently placed at ₹171 level.
It has also cleared its downward-sloping trendline quite comfortably. The best part about this reversal is has bounced back from its monthly central pivot range which has acted as massive support.
Greenpanel Industries | Buying range: ₹365-375 | Target price: ₹420 | Stop loss: ₹345
Greenpanel has been trading in a range between ₹310 and ₹350 for the past three months. It recently broke out on a weekly basis. On the daily chart, it is currently trading above all significant daily exponential moving averages, which appears to be an attractive opportunity. Additionally, the weekly RSI has bounced back from the 50 level, indicating a further bullish sentiment.
Cigniti Technologies | Target price: ₹1,100 | Stop loss: ₹940
Cigniti Tech has performed exceptionally well in recent weeks, exhibiting a rapid 25 percent increase. The stock experienced a notable rebound after retesting the multi-year trendline breakout on the monthly charts. Furthermore, it has recently achieved fresh swing breakouts on the weekly charts, supported by robust volumes, suggesting the potential for further upward movement.
The stock is currently trading above short-term moving averages, indicating a sustained strong trend. Additionally, a bullish MACD crossover on the weekly charts is expected to provide further momentum in the days ahead.
Dhunseri Ventures | Target price: ₹350 | Stop loss: ₹280
Dhunseri Ventures recently experienced a bullish breakout from a symmetrical triangle a few months ago, but subsequently went through a period of increased consolidation.
Recently, the stock has broken out of its consolidation phase, potentially signaling the end of its stagnant period. Notably, it has observed the highest weekly trading volumes in the last two years, which could drive the stock towards new all-time highs.
Momentum is anticipated to surge when the Relative Strength Index (RSI) climbs above the 71 level on the weekly charts. Additionally, the stock has seen a bullish crossover in the Moving Average Convergence Divergence (MACD) indicator, and the modified Supertrend indicator has generated a buy signal on the weekly charts. These developments may initiate a fresh uptrend in the stock.
Khadim India | Target price: ₹400 | Stop loss: ₹350
Khadim has formed a very interesting pattern on the weekly charts post the Covid period. It trades in a consolidation which is followed by a breakout. After a swift upside, the stock witnesses another consolidation which cools off the momentum indicators and paves the way for a fresh breakout.
The stock has repeated this phenomenon with a fresh consolidation breakout witnessed on the weekly charts with incremental volumes. The stock has witnessed a bullish signal in the Ichimoku system which can result in the start of a fresh uptrend.
Berger Paints | Target price: ₹640 | Stop loss: ₹560
The stock, after a notable decline from its peak at ₹680, has hit a low point around ₹550 and is now showing signs of a rebound, which is improving the overall outlook.
It is currently trading above the important 50EMA (exponential moving average) level of ₹580, which indicates a stronger trend and suggests that there could be further gains in the near future. The RSI (Relative Strength Index) has also signaled a potential reversal in the trend and has plenty of room for upward movement from its current levels.
Apollo Tyres | Target price: ₹440 | Stop loss: ₹368
The stock, following a gradual correction, has stabilized around ₹365. Over the past two weeks, it has shown signs of improvement, approaching the important 50-day Exponential Moving Average (EMA) at ₹385.
If the price decisively surpasses ₹390, it will likely reinforce the current trend, and we can anticipate further gains in the near future. The Relative Strength Index (RSI) has gradually risen from the oversold territory and is currently in a favorable position, indicating strength in the stock.
Titan Company | Target price: ₹3,630 | Stop loss: ₹3,120
The stock has been forming higher bottom patterns on the daily chart, maintaining a strong upward trend for the past five to six months.
It has recently retraced to find support around the important 50EMA level at ₹3,120 and shown a decent bounce, signaling improved sentiment.
The RSI is also in a favorable position, suggesting a trend reversal and indicating a buying opportunity with significant upside potential.
“Exciting news! Nyreadtime is now on twitter Channels 🚀 Subscribe today by clicking the link and stay updated with the latest news insights!” Click here!