Experts expect the benchmarks to sustain gains. However, as the Lok Sabha election result day draws closer, there could be short-term volatility.
According to Ajit Mishra, SVP of research at Religare Broking, the market’s buoyancy over the last two weeks has countered the previously bearish sentiment. The Nifty is expected to move toward the 23,150-23,400 range soon.
“In the event of a dip, the 22,550-22,800 zone is expected to provide strong support. While all key sectors are contributing to the rally, banking and IT still have significant upside potential, and their participation could drive the index to much higher levels. We recommend continuing a stock-specific trading approach, favouring large and mid-cap stocks for short-term trades,” said Mishra.
Even as the market is at a record high level, experts say some stocks look attractive on the technical charts, and one can consider buying them for short-term gains. Based on analysts’ recommendations, the below nine stocks may give double-digit returns in the short term. Take a look:
Analyst: Riyank Arora, Technical Analyst at Mehta Equities
Tata Motors | LTP: ₹960.55 | Target price: ₹1,200 | Stop loss: ₹909 | Upside potential: 25%
Arora pointed out that the Tata Motors stock has taken strong support at the ₹920 mark and bounced strongly from those levels, indicating a potential double-bottom reversal pattern on its daily charts.
With the RSI (14) near 46 and witnessing a minor uptick from lower levels of 35, the stock is indicating good signs of momentum and strength and looks poised for price targets of ₹1,200 and above from a short-term perspective. However, a strict stop loss should be kept at ₹900 mark to manage risk well, said Arora.
Tata Consumer Products | LTP: ₹1,098.25 | Target price: ₹1,300 | Stop loss: ₹1,050 | Upside potential: 18%
The stock has given a strong breakout above its trendline resistance mark of ₹1,115 and successfully closed above the same, Arora observed.
“With the stock witnessing a minor uptick in its RSI (14), rising from 37 to 53, the overall momentum looks strong. The stock also seems to be forming a strong base at the ₹1,056 mark,” said Arora.
“A strict stop loss should be kept at ₹1,050 mark to manage risk well and we can chase potential targets of ₹1,300 and above on the upside for Tata Consumer,” Arora said.
Analyst: Mandar Bhojane, Equity Research Analyst, Choice Broking
Larsen & Toubro | LTP: ₹3,625.90 | Target price: ₹4,000 | Stop loss: ₹3,400 | Upside potential: 10%
Larsen & Toubro (L&T) is trading near ₹3,600, exhibiting a strong reversal from the bottom level.
The price action has formed a bullish engulfing pattern with substantial volume, signalling a bullish reversal following a correction from the top.
Bhojane said L&T could achieve a target price of ₹3,800 and ₹4,000 in the near term, making it advisable to consider purchasing on dips, particularly around ₹3,490.
Additionally, Bhojane pointed out that L&T is positioned above key exponential moving averages (EMAs), including the 100-day and 200-day EMAs. This alignment above these crucial EMAs enhances the bullish outlook, suggesting the possibility of a sustained upward price movement.
“To effectively manage risk, it is recommended that you implement a stop loss at ₹3,400. This precautionary measure is crucial to safeguarding your investment in an unexpected market reversal,” said Bhojane.
Analyst: Vijay Laxmi A Ambala, SEBI registered independent research analyst
PNB Housing Finance | LTP: ₹796.45 | Target price: ₹900 | Stop loss: ₹742 | Upside potential: 13%
The stock trades above its key moving averages – the 20, 50, and 200-day EMAs.
Housing demand is likely to increase in the upcoming year, and companies with good financial conditions will have better choices to capitalise on this trend.
This stock could benefit from increased demand in the housing finance sector, which could be driven by…
Read More: Stocks to buy: Tata Motors, L&T among 9 stocks that may give double-digit