Stocks to buy this week: Experts suggest these 10 technical picks; do you own any?

Last week, Nifty slipped 0.66 per cent to end at 19,517. Experts now see the level of 19,650 as a crucial one above which, the index could resume a fresh uptrend.

“The chart pattern suggests that if Nifty crosses and sustains above 19,650 level it would witness buying which would lead the index towards 19,700-19,800 levels. However, if the index breaks below the 19,400 level it would witness selling which would take the index towards 19,300-19,200,” said Axis Securities.

For this week, Axis Securities expects Nifty to trade in the range of 19,800-19,200 with mixed bias.

“The weekly strength indicator RSI is on the verge of crossover below its reference line. However momentum oscillator Stochastic has turned negative from the overbought zone indicating a possible consolidation or a profit booking in the near term,” the brokerage firm added.

As the market outlook is hazy for the short term, analysts recommend betting on quality stocks with sound technical indicators at this juncture. Here are 10 technical calls that one can buy for the next 3-4 weeks. Take a look:

Axis Securities

Graphite India | Target price: ₹497-521 | Stop loss: ₹413

On the weekly chart, Graphite India has decisively broken out above the significant “multiple resistance zone”, surpassing the ₹428 level. This breakout is supported by an increase in volume, suggesting active participation at the breakout level.

The stock was moving in a medium-term falling channel from ₹816 level. During mid of June 2023, it broke above the upper band of the channel and bounced back sharply, indicating positive momentum. The daily “Bollinger Band” generated a buy signal as the stock closed above the upper Bollinger Band.

The weekly strength indicator RSI is holding above its reference line which indicates positive momentum.

“The above analysis indicates an upside of ₹497-521 levels,” the brokerage firm said.

Ramco Systems | Target price: ₹327-346 | Stop loss: ₹272

On the daily chart, Ramco Systems has convincingly broken out above the notable inverted head and shoulder (IHS) pattern, surpassing the neckline level of ₹274, indicating a positive bias.

During the pattern formation, the volume dried up, but at the breakout, there was a noticeable influx of participation.

The stock has strongly surpassed the significant daily moving averages of 20, 50, 100, and 200, indicating a bullish bias. The weekly strength indicator RSI is holding above its reference line which indicates positive momentum.

“The above analysis indicates an upside of ₹327-346 levels,” said the brokerage firm.

Cyient | Target price: ₹1,735-1,770 | Stop loss: ₹1,450

On the weekly chart, the stock is exhibiting a robust uptrend, forming a medium-term rising channel since the beginning of 2023.

Since the start of June 2023, the stock has been consolidating, and it recently broke above the consolidation zone above ₹1,533, suggesting a continuation of the uptrend.

During the consolidation phase, the stock experienced a decrease in volume, but at the breakout, there was a notable surge in volume.

The weekly strength indicator RSI has given a crossover above its reference line and generated a buy signal.

“The above analysis indicates an upside of ₹1,735-1,770 levels,” said Axis Securities.

Castrol India | Target price: ₹165-172 | Stop loss: ₹138

Castrol India, on the weekly chart, has successfully breached the prominent symmetrical triangular pattern, surpassing the key level of ₹140, indicating a favourable bias.

During the consolidation phase, the stock experienced a decrease in volume, but at the breakout, there was a notable surge in volume.

The stock is exhibiting a higher high-low formation on the daily chart, which suggests the presence of positive momentum in the short term also.

The weekly strength indicator RSI is holding above its reference line which indicates positive momentum.

“The above analysis indicates an upside of ₹165-172 levels,” said the brokerage firm.

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

PVR INOX | Target price: ₹1,740 | Stop loss: ₹1,510

Recently, this counter formed a bullish bat pattern on a weekly scale with ₹1,450-1,550 as the potential reversal zone and the current market price is well above it.

Additionally, on a daily scale, PVR is sustaining above its all-major exponential moving averages. Also, PVR has reversed from its above-mentioned PRZ (potential reversal zone) along with RSI rebounding from 35-40 levels thus hinting towards bullish bias.

“One can buy the stock in the range of ₹1,600-1,620 with an upside target of 1,740 and the stop loss should be ₹1,510 on a daily close basis,” said Patel.

For the last two months, this counter has been making a base near its crucial support of ₹70-72 which was also its monthly central pivot range.

From the indicator perspective, the daily MACD has given a bullish crossover above the zero-line which hints further upside in the counter.

“One can buy this stock in a small tranche in the range of ₹77-80 and another in the range of ₹74-75 with an upside target of ₹95 and a stop loss should be ₹67 on a closing basis,” said Patel.

Asahi India Glass | Target price: ₹600 | Stop loss: ₹495

After making a solid base near ₹460-500 levels, which is also a potential reversal zone of the bullish bat pattern, the stock has been trading above all critical daily exponential moving averages.

Additionally, this counter has made a bullish divergence near the above-mentioned potential reversal zone, which is making it lucrative at current levels.

“One can buy this stock between ₹530-535 with an upside target of ₹600 and the stop loss should be around ₹495 on a closing basis,” Patel said.

Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher

TV18 Broadcast | Target price: ₹47 | Stop loss: ₹35

The stock has witnessed some consolidation and is near the important 50EMA (exponential moving average) level of ₹38.20 which is maintained as the support zone.

A decisive move past ₹41.50 may further strengthen the bias and one can anticipate a further rise in the coming days.

“With the RSI also flattening out and well placed, we can expect some revival in the stock. One can buy and accumulate the stock for an upside initial target of ₹47 and thereafter ₹52, with a stop loss maintained near ₹35,” said Parekh.

SRF | Target price: ₹2,550 | Stop loss: ₹2,120

The stock has witnessed a decent correction from the ₹2,600 level and has bottomed out at around ₹2,100 level near the previous low made.

With a decent pullback, it has currently made a bullish positive candle on the daily chart.

The bias is turning positive and the RSI is also well placed, which is on the rise, indicating a trend reversal to signal a buy.

“We expect a further rise with much upside potential and suggest buying this stock for an upside target of ₹2,550, keeping the stop loss near ₹2,120 level,” said the analyst.

Avenue Supermarts (DMart) | Target price: ₹4,200 | Stop loss: ₹3,500

The stock has witnessed a short correction from ₹4,137 and has consolidated taking support near ₹3,600 level, indicating a higher bottom formation pattern on the daily chart.

“There are signs of improvement in the bias with the RSI also showing a trend reversal and signalling a buy. We suggest buying and accumulating this stock for an upside target of ₹4,200, keeping the stop loss of ₹3,500,” said the analyst.

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Disclaimer: The views and recommendations above are those of individual analysts and broking companies, not of Mint. We advise investors to check with certified experts before taking any investment decisions.

Updated: 07 Aug 2023, 01:42 PM IST