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Stocks to buy this week: Asian Paints, Titan, BoB among 12 technical picks


Nifty fell 0.3 per cent in the previous week and formed a ‘Doji’ candle formation on the weekly chart, indicating indecision among market participants.

According to Axis Securities, the chart pattern suggests that if Nifty crosses and sustains above the 22,000 level, it would witness buying, which would take the index towards 22,150-22,300 levels. However, if the index falls below the 21,600 level, selling would occur, taking the index towards 21,500-21,300.

“The weekly strength indicator RSI (Relative Strength Index) is moving down and trading below its reference line, indicating a negative bias. For the week, we expect Nifty to trade in the range of 22,200-21,500 with a mixed bias,” Axis Valores said.

The market may experience some volatility in the short term. Experts recommend buying technically and fundamentally sound stocks in the current situation. Based on the recommendations of several experts, below are 12 stocks that one can consider buying over the next three to four weeks. Have a look:

Axis values

Thermomax | Purchase range: $3,335-3,269 | Target price: $3,790-3,885 | Stop loss of: $3,055

On the weekly chart, Thermax broke the ‘Cup and Handle’ pattern on the $3,276, indicating a continuation of the bullish trend after four months of consolidation.

Volume activity decreased during pattern formation. However, there was an increase in volume on the breakout, indicating increased market participation.

The stock is showing a pattern of higher high and higher low formations on the weekly chart and remains above the medium-term ascending trend line, indicating a medium-term bullish trend.

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

Also Read: RBI may take a few more months to start reducing rate: Sanctum Wealth’s Roopali Prabhu

ICICI Lombard General Insurance Company | Purchase range: $1,600-1,568 | Target price: $1,752-1,830 | Stop loss of: $1,500

On the weekly chart, the stock has broken through the multiple resistance zone around $1,500 with a bullish candle, indicating the continuation of a medium-term bullish trend.

The increase in the volume of activity on the breakout suggests an influx of market participation, emphasizing the importance of the price movement.

The close above the upper Bollinger band on the weekly chart has generated a buy signal.

The weekly strength indicator RSI is in bullish mode and remains above its reference line, indicating a positive bias.

Bank of Baroda (BoB) | Purchase range: $266-261 | Target price: $296-306 | Stop loss of: $247

On the weekly chart, Bank of Baroda broke through the consolidation zone between $240-220 with bullish candle.

The previous resistance level of $240 is now expected to act as support due to the principle of polarity, providing a support zone for the stock price movement.

The stock remains above the key 20-, 50-, 100-, and 200-day averages, indicating a strong bullish trend in the stock.

The weekly strength indicator RSI is in bullish mode and remains above its reference line, indicating a positive bias.

Also Read: NBCC Shares Fall for 6th Consecutive Day, Locked in 10% Lower Circuit; this is why

Gaurav Bissa, Vice President of InCred Equities

CAC | Target price: $2,750 | Stop loss of: $2,540

ACC has been in a strong uptrend. It has been one of the most stable cement names in recent times.

It has witnessed a fresh breakout of a bullish flag pattern on the daily charts, which is a continuation pattern in nature.

The breakout occurred with strong volumes that can act as fuel for a rapid rise.

ADX is seen trading well above level 24, which is a sign that the trend is gaining strength.

SMS pharmaceuticals | Target price: $162 | Stop loss of: $136

SMS Pharma has been in the process of consolidation for a few months. It has now confirmed a breakout of the cup and handle pattern on the daily charts, which is a continuation pattern in nature.

The stock has witnessed one of the highest daily volumes which can push the prices to a new zone.

The RSI has witnessed a breakout on the daily charts along with a bullish MACD crossover which may result in the start of a strong uptrend.

Also Read: NHPC share price drops 10% ahead of Q3 results today. Should you buy, sell or hold the stock?

EKC has been in a strong uptrend since March 2023 with continuous formations of higher highs and higher lows.

It has now witnessed a breakout of a rising wedge pattern on the weekly charts along with one of the highest weekly volumes which can give a strong boost to the prices.

The RSI has witnessed a breakout on the weekly charts along with a bullish MACD crossover which may result in the start of a new uptrend.

Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher

Titan Company | Target price: $3,870 | Stop loss of: $3,500

The stock, after a brief correction, consolidated, taking support near $3,500.

It has currently shown signs of improvement and the RSI has also flattened and indicates a trend change on the daily chart.

A decisive move beyond the significant 50EMA level of $3,620 will further reinforce the bias.

Asian paintings | Target price: $3,260 | Stop loss of: $2,880

The stock, after witnessing a decent correction, has once again reached the long-term trend line support in $2,900 where it has shown signs of bottoming out. On previous occasions, he kept the support bottoming twice and then witnessed a decent rally.

“Currently, with some consolidation around $2900 and a decline is observed, we anticipate a further increase in the coming days. With the RSI hovering near the high oversold zone, it has indicated a trend reversal to signal a buy,” Koothupalakkal said.

“Since the risk-reward ratio is favorable and the chart looks very attractive, we suggest a buy of the stock to achieve a bullish target of $3,260, keeping the stop loss at $2,880,” Koothupalakkal said.

Also Read: Star Cement share price rises 12% to all-time high; What should investors do?

The population has witnessed some erosion since the peak of $818, taking support near the important 100-period MA (moving average) $700, showing signs of bottoming out.

With a pullback, the bias has improved.

The RSI has cooled down from the overbought zone and currently, after reaching the oversold region, it has indicated a trend reversal to signal a buy.

Jigar S. Patel, Senior Director, Equity Research, Anand Rathi Share and Stock Brokers

Dr. Reddy’s Laboratories | Target price: $6,675 | Stop loss of: $5,850

The last few months have been good for pharma stocks since the Nifty Pharma index rose more than 20 percent from the bottom of $14,600.

Although most of the heavyweights of the pharmaceutical industry participated in this rally, Dr Reddy Laboratories has been going strong for many weeks.

The stock has now confirmed a breakout that resembles a bullish cup and handle pattern.

“Traders are advised to purchase Dr Reddy’s Laboratories in the range of $6,100-6,200 with a stop loss of $5,850 as a closing for a bullish objective of $6,675,” Patel said.

Ether Industries | Target price: $975 | Stop loss of: $810

For a month or so, this counter gained enormous momentum from the retracement levels of its previous upward move (0.786 percent), making it a lucrative buy.

Time and price retracement are falling at the same time, which is a strong indication that a bottom is being reached. (The temporary retracement is 0.382 percent and the price retracement is 0.786 percent.)

On the indicator front, the weekly RSI has formed an impulse structure near the 30 level, further confirming our bullish stance on the counter.

“You can buy shares in the area of $855-870 for a target of $975 and a stop loss of $810 at the daily close,” Patel said.

Rain industries | Target price: $220 | Stop loss of: $160

Over the last two months or so, this counter has been consolidating among $145 and $155.

Recently, there was a breakout of that range at the weekly close, which looks lucrative.

It has also formed a bullish Gartley pattern that is 1.38 years old, making it more reliable.

Additionally, it has violated a couple of trend lines. The best part of this bullish reversal is that each fund has bought with high volume bars, indicating a bullish bias in the counter.

On the indicator front, the weekly RSI has breached the trendline, further affirming our bullish stance on the counter.

“We advise traders and investors to go for long positions in the range of $175-185 with a bullish target of $220, and the stop loss should be placed at $160 at the daily close,” Patel said.

Note: The Gartley pattern is a harmonic chart pattern, based on Fibonacci numbers and ratios, that helps traders identify reaction highs and lows.

Read all market related news here

Disclaimer: The opinions and recommendations above are those of individual analysts, experts and brokerage firms, not those of Mint. We advise investors to consult certified experts before making any investment decisions.

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Posted: Feb 12, 2024, 12:46 pm IST



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