Stocks to buy this week: RIL, DLF, Bajaj Finance, Titan among 12 technical picks; do you own any?

While the Israel-Palestine war is a fresh concern for the markets, a sharp jump in crude oil prices, persisting concerns over interest rates, global economic slowdown, selling by foreign institutional investors (FIIs) due to rising bond yields and dollar index and caution ahead of Q2 earnings are some other factors that are weighing on market sentiment.

Also Read: Nifty 50, Sensex decline on Israel-Hamas war: 5 factors that weigh on market sentiment

On Monday, Nifty 50 opened at 19,539.45 against the previous close of 19,653.50 and fell 0.90 per cent to the day’s low of 19,480.50 while the Sensex opened at 65,560.07 against the previous close of 65,995.63 and fell 0.85 per cent to the day’s low of 65,434.61 in Monday’s trade so far.

Last week, the Nifty formed a small bullish candle with a lower shadow on the weekly chart, indicating buying near the 20-weekly simple moving average.

“The chart pattern indicates that if Nifty crosses and sustains above the 19,750 level, it could witness buying, leading to the index towards 19,900-20,000 levels. However, if the index breaks below the 19,500 level, it could witness selling, taking it towards 19,350-19,200,” said brokerage firm Axis Securities.

The brokerage firm expects Nifty to trade in the range of 20,000-19,200 with a positive bias for the week.

Experts say investors should be cautious in the short term and follow a stock-specific approach. Based on the recommendations of experts and brokerage firms, below are 12 stocks that one may consider buying for the next three to four weeks as they look sound on technical parameters. Take a look:

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Axis Securities

Mahindra Holidays & Resorts India | Buying range: ₹432-424 | Target price: ₹480-495 | Stop loss: ₹402

On the weekly chart, Mahindra Holidays has successfully broken out above a consolidation zone, ranging from ₹420-390, accompanied by a sizable bullish candle, which signifies the continuation of the uptrend.

The stock, currently trading within a rising channel, found support at the lower band and is now trending towards the upper band, indicating a bullish momentum.

It has established a medium-term support level at ₹359, which corresponds to a 38 per cent Fibonacci retracement from the price range of ₹256-422.

The weekly strength indicator RSI is moving upwards and is above its reference line indicating positive bias.

“The above analysis indicates an upside of ₹480-495 levels,” said Axis Securities.

DLF | Buying range: 545-535 | Target price: ₹570-595 | Stop loss: ₹525

On the daily chart, DLF has successfully broken out above a consolidation zone, ranging from ₹543-514.

The stock broke above the horizontal resistance at ₹517 in the first week of September 2023, forming a base around this level. According to the principle of polarity, the previous resistance at ₹517 is expected to act as a support going forward.

The stock found short-term support at ₹514, corresponding to a 38 per cent Fibonacci retracement from the price range of ₹453-544.

The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal

“The above analysis indicates an upside of ₹570-595 levels,” Axis Securities said.

L&T Finance Holdings | Buying range: ₹137-134 | Target price: ₹153-160 | Stop loss: ₹127

On the daily chart, L&T Finance Holdings has successfully broken out above a consolidation zone, ranging from ₹136-117.

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 well-placed above key moving averages of 20, 50, 100, and 200 days, daily SMA (simple moving averages), indicating positive momentum in the stock.

The weekly strength indicator RSI is moving upwards and is above its reference line indicating positive bias.

“The above analysis indicates an upside of ₹153-160 levels,” said the brokerage firm.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers

Reliance Industries (RIL) | Buying range: ₹2,300-2,320 | Target price: ₹2,400 | Stop loss: ₹2,265

On July 20, 2023, the stock made a high of ₹2,621. Since then, it has been making lower tops and lower lows, which resulted in a 326-point, or about 12.4 per cent, cut in price.

At the current juncture, near the support of ₹2,300, selling pressure is gradually slowing down. On a daily scale, a bullish bat structure is spotted.

Daily RSI is making an impulsive structure near the oversold zone of the 30 level, which is making RIL a lucrative buy candidate.

Ramco Systems | Buying range: ₹308-314 | Target price: ₹380 | Stop loss: ₹276

On a weekly scale, Ramco Systems has taken out the Ichimoku cloud, preceded by the Tenkan Sen and Kijun Sen crossovers, which are looking lucrative.

The breakout seems genuine since it is supported by a huge volume bar. Moreover, on a monthly scale, MACD has given a bullish cross, thus hinting at further bullish bias in the counter.

Greenpanel Industries | Buying range: ₹370-378 | Target price: ₹435 | Stop loss: ₹344

Greenpanel has been consolidating between ₹310 and ₹350 for the last three months. Recently, it gave breakouts on a weekly scale.

On the daily chart, it is trading above all major daily exponential moving averages, which looks lucrative. Even the weekly RSI has rebounded from 50 levels, thus hinting at further bullish bias.

Gaurav Bissa, VP, InCred Equities

Bajaj Finance | Target price: ₹8,550 | Stop loss: ₹7,950

Bajaj Finance has picked up strong momentum recently. The stock has been one of the strongest large-cap names with consistent outperformance. The stock has witnessed a fresh breakout from a two-year consolidation which can now push it towards ₹8,500-8,700 in the near term. The RSI has witnessed a descending trendline breakout along with a bullish MACD crossover on the weekly charts which can result in the start of a fresh uptrend.

Indian Hotels Company | Target price: ₹445 | Stop loss: ₹405

Hotel space has witnessed increased buying interest in the last few days. Indian Hotel has been relatively stable during the violent winds seen in the market recently.

The stock has bounced from an ascending wedge pattern on the weekly which can now push it towards the breakout level of ₹440. A weekly close above this will trigger a fresh breakout which can catapult it towards ₹480 levels, thus making the stock a lucrative buy at the current levels.

Eris Lifesciences | Target price: ₹1,050 | Stop loss: ₹830

The stock has formed consistent strong candles on the monthly charts with incremental volumes implying increased buying interest by the market participants.

It has now witnessed a five-year ascending channel pattern on weekly Heikin Ashi charts which can result in a strong upside going forward. RSI is on the verge of a major breakout and a monthly close above 70 is expected to give a strong push to the stock price.

The stock had earlier witnessed a bullish MACD crossover on the monthly chart which can ensure the trend remains strong in the coming months.

Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher

Texmaco Rail & Engineering | Target price: ₹160 | Stop loss: ₹124

The stock, after the decent rally, has witnessed a short correction and has retraced almost 25 per cent of the rally. It has shown signs of bottoming out near the significant 50EMA (exponential moving average) level of ₹124, indicating some improvement in the bias with positive candle formation on the daily chart.

The RSI is well placed and it is currently cooling off from near the overbought zone, indicating a trend reversal to signal a buy.

MTAR Technologies | Target price: ₹2,940 | Stop loss: ₹2,520

The stock, after the strong run, has witnessed resistance near the ₹2,920 level and has slipped down on profit-booking, taking support near ₹2,400 which is the 50EMA level.

It has witnessed some recovery to improve the bias. Currently, the bias has improved with the stock making another higher bottom formation pattern on the daily chart and indicating positive candle formations. The RSI is strong and is well placed currently with upside potential visible.

Titan | Target price: ₹3,630 | Stop loss: ₹3,120

The stock has indicated a series of higher bottom formations on the daily chart with overall maintaining a strong ascending trend since the last five to six months.

Currently, it has retraced to take support near the significant 50EMA level of ₹3,120 and indicated a decent pullback with improvement in the bias.

The RSI also is well-placed and has indicated a trend reversal to signal a buy with much upside potential visible.

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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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Updated: 09 Oct 2023, 01:15 PM IST