Market benchmark Nifty 50 has been trading rangebound for the last few days due to a lack of triggers. Investors appear to be cautious ahead of state election outcomes and India's Q2 GDP numbers.
In morning trade on Tuesday, Nifty 50 rose about 0.3 per cent but soon pared most gains and traded 0.14 per cent up at 19,823 around 10:35 am.
Last week, Nifty formed a 'Doji' candlestick pattern on the weekly chart indicating indecisiveness among market participants.
According to Axis Securities, the chart pattern suggests that if the Nifty crosses and sustains above 19,900, it would witness buying which would lead the index towards 20,000-20,200 levels.
However, if the index breaks below the 19,650 level, it would witness selling, which would take the index towards 19,500-19,400, Axis Securities said.
The brokerage firm pointed out that the weekly strength indicator RSI continues to remain flat, indicating the absence of strength. However, the momentum oscillator Stochastic has turned positive from the oversold zone, indicating a possible up move in the near term.
For the week, Axis Securities expects Nifty to trade in the range of 20,200-19,400 with a mixed bias.
The market is expected to remain volatile in the short term due to prevailing uncertainty. 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:
Bharti Airtel | Buying range: ?963-943 | Target price: ?1,040-1,070 | Stop loss: ?910
On the weekly chart, Bharti Airtel has convincingly broken through the consolidation zone ranging from ?960 to ?902, propelled by a robust bullish candlestick pattern, affirming the continuation of the medium-term uptrend.
The stock is currently following a rising channel formation in the medium term finding support at the lower band of the channel recently and rebounding, indicating a potential move towards the upper band.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
Bharat Forge | Buying range: ?1,095-1,073 | Target price: ?1,172-1,200 | Stop loss: ?1,040
Bharat Forge has exhibited a robust breakout above ?1,100 from a falling channel pattern on the weekly chart, supported by a strong bullish candle, signalling a positive bias.
The stock holding above the 38 per cent Fibonacci retracement level of the rally from ?743-1,148, placed at ?994, indicates the formation of a medium-term support base.
The stock is exhibiting a pattern of higher highs and lows on the medium chart, indicating a strong uptrend.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
SJVN | Buying range: ?79-77 | Target price: ?87-91 | Stop loss: ?74
On the weekly chart, SJVN surged above the symmetrical triangular pattern at ?78 with a robust bullish candle, indicating the continuation of an uptrend following a short-term consolidation breakout.
Volume activity during the pattern formation period declined, but it surged at the breakout, reaffirming the positive bias in the stock trend.
The stock is holding above key averages of 20, 50, 100, and 200 days simple moving average (SMA), signalling a strong uptrend in the stock.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
Sun Pharma Advanced Research Company (SPARC) | Target price: ?290 | Stop loss: ?260
Many of the pharma names have done quite well lately with strong upsides seen in largecap and midcap stocks. SPARC witnessed a good upside which was followed by a consolidation on the weekly charts.
The stock has confirmed a weekly breakout with incremental volumes which can propel the stock towards ?300. The stock has triggered a buy signal in the Ichimoku system which can result in the start of a fresh uptrend.
DCX Systems | Target price: ?405 | Stop loss: ?350
DCX Systems has a small price history but it has been form
ing higher highs and higher lows on daily charts which shows an uptrend.
The stock has closed above its listing high price and witnessed a breakout on the weekly charts. It has witnessed one of the highest volumes implying the stock is all set to witness a robust upside.
The stock has witnessed a bullish MACD crossover on weekly charts which is likely to keep the trend strong in the immediate term.
DCM Shriram Industries | Target price: ?185 | Stop loss: ?152
DCM Shriram Industries witnessed a strong upside which was followed by a consolidation. The stock has confirmed a weekly breakout from a bullish flag pattern which is a continuation pattern in nature and is expected to witness a move towards ?200 level.
