Stocks to buy this week: Wipro, YES Bank, Laurus Labs among 12 technical picks; do you own any?
However, on a monthly scale, Nifty 50 and Sensex are up almost 7 per cent in December so far. Experts remain positive about the market for the medium to long term but they expect some volatility in the short term due to the market’s rich valuation.
“High valuations continue to be a short-term concern. However, the global market construct continues to be favourable with the US inflation, bond yields and the dollar index trending down,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
On Tuesday, December 26, the Nifty 50 rose over half a per cent during the session. Around 12:40 pm, the index was 0.47 per cent up with 43 stocks in the green.
The overall sentiment of the market remains positive but 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:
(Exciting news! Mint is now on WhatsApp Channels. Subscribe today and stay updated with the latest financial insights! Click here!)
Axis Securities
Uno Minda | Buying range: ₹665-653 | Target price: ₹727-755 | Stop loss: ₹625
On the weekly chart, Uno Minda breached the multiple resistance around ₹640 in the last week of November 2023 with a robust bullish candle, signalling the continuation of a medium-term uptrend.
The stock underwent a retest of the breakout, rebounding and confirming the validity of the breakout.
The stock is establishing a higher high-low formation and maintaining a position above the medium-term upward-sloping trendline on the weekly chart, indicating positive momentum.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
Patanjali Foods | Buying range: ₹1,620-1,588 | Target price: ₹1,830-1,885 | Stop loss: ₹1,490
On the weekly chart, Patanjali Foods breached the multiple resistance zone around ₹1,500 in the first week of December 2023 with a strong bullish candle, signalling the continuation of a medium-term uptrend.
The stock underwent a retest of the breakout, rebounding and thereby confirming the validity of the breakout.
It also underwent a brief consolidation within the range of ₹1,500-1,200 before the breakout, signifying positive momentum.
The weekly strength indicator RSI is in a bullish mode and holding above its reference line indicating positive bias.
Laurus Labs | Buying range: ₹413-405 | Target price: ₹467-485 | Stop loss: ₹380
On the weekly chart, Laurus Labs broke above the downward-sloping trendline at ₹392 with a robust bullish candle, signalling the commencement of an uptrend.
Volume activity increases during the breakout indicating an influx of market participation.
The stock found support at the 38 per cent Fibonacci retracement level of the rally from ₹278 to ₹418, positioned at ₹366, establishing a short-term support base.
The stock’s daily close above the upper Bollinger band signals a buy, indicating potential bullish momentum.
The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.
Also Read: Market momentum may continue in 2024; FPI money will continue to pour into India, says Ajit Banerjee
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
For a week or so, this counter has gained momentum. From a retracement perspective, alternate wave retracement comes exactly near 0.618 and 1.628 of its previous up-move, thus making it a lucrative buy.
Time and price retracement are falling at the same length, which is a strong indication of bottoming out. (Time retracement is 100 per cent and price retracement is 0.618 per cent.)
On the indicator front, the weekly RSI has reversed from 50 levels, which further confirms our bullish stance on the counter.
“One can buy the stock in the zone of ₹295–305 for a target of ₹350 and a stop loss of ₹275 on a daily closing basis,” said Patel.
Clean Science and Technology had been consolidating between ₹1,330 and ₹1,430. Recently, it broke out from the said levels and sustained above them.
Also, the bear trendline on a weekly scale has been violated, along with RSI and DMI weekly being in bullish mode, which is looking lucrative.
“We advised traders to go long on the stock in the zone of ₹1,480-1,520 with a stop loss of ₹1,425 and an upside target of ₹1,650,” said Patel.
YES Bank | Target price: ₹26 | Stop loss: ₹19
Since the last month, YES Bank has gained some quick momentum and placed near the ₹21 mark. Recently, it took out its previous swing high with huge volume and successfully sustained above it.
The most important part is that the five-year bear trendline has been violated, which confirms our bullish stance in the YES Bank.
On the indicator front, daily DMI and RSI hint at a bullish bias in the counter.
“One can buy in the range of ₹21–22 for a target of ₹26 and a stop-loss of ₹19 on a daily close basis,” said Patel.
Also Read: IPOs this week: 6 new public issues to hit Dalal Street, 10 stocks to debut
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher
BEL | Target price: ₹207 | Stop loss: ₹163
The stock has witnessed a decent rally in the last seven to eight months, maintaining a strong uptrend, with recently finding resistance near ₹175.
With some consolidation happening, the support has been maintained near ₹163 and indicated a pullback.
“One can anticipate further fresh upward move. On the closing basis, a decisive breakout has been confirmed above ₹173. With strength sustaining one can expect further rise till ₹187 and thereafter ₹207 in the short term,” said Koothupalakkal.
CDSL | Target price: ₹2,050 | Stop loss: ₹1,720
The stock, after the significant rally witnessed in the previous two months, has been hovering within a range with near-term support visible near ₹1,700 and upside capped near ₹1,990.
The overall bias is positive and currently with a bullish candle formation, the stock is expected to rise further in the coming days.
The RSI is also cooling off from the overbought zone and is currently well-placed. It has scope for further upside movement in the coming days.
The stock, after witnessing a decent correction from the peak level of ₹1,375, has shown signs of bottoming out, taking support near ₹1092 and indicating a positive candle pattern on the daily chart.
The stock is on the verge of moving past the significant 50EMA (exponential moving average) level of ₹1,150 to signal further strength. With the long-term trendline support maintained, a further upside move is expected.
The RSI also flattened out after the slide, indicating a trend reversal to signal a buy.
“With much upside potential visible and the chart looking good, we suggest buying and accumulating the stock for an upside target of ₹1,300, keeping the stop loss of ₹1,080,” said Koothupalakkal.
Also Read: IRCTC share price retraces from 52-week high. Opportunity to buy?
Gaurav Bissa, VP, InCred Equities
Wipro | Target price: ₹510 | Stop loss: ₹430
Nifty IT has been very strong in recent times. It witnessed a rising channel pattern breakout on the weekly charts. It remains strong with a possibility of another 3-5 per cent upside in the coming weeks.
Wipro has witnessed a similar breakout on the weekly charts and looks poised for a strong upside. It has been underperforming its larger peers for a while now but is now expected to catch up in the days to come.
RSI has witnessed an inverse head and shoulder pattern breakout on the weekly charts which can give a strong thrust to the stock price.
“Wipro is now trading above the weekly Kumo in the Ichimoku system, suggesting a fresh uptrend can be seen which can take it towards ₹500-550 levels,” said Bissa.
MSTC | Target price: ₹630 | Stop loss: ₹525
MSTC witnessed a double-bottom breakout on weekly charts which pushed the prices from ₹350 to ₹550 levels. It has now witnessed a fresh consolidation breakout and closed at life-high levels which can push the stock towards ₹650 levels.
It has witnessed significant volume for the last two weeks along with the possibility of three white soldiers pattern formation in the next week which can result in a sharp upside.
RSI has closed above 70 levels, which will ensure the trend remains strong and a bullish MACD crossover on the weekly charts will add more momentum going forward.
Jubilant Pharmova | Target price: ₹600 | Stop loss: ₹490
Nifty Pharma has been one of the best-performing major indices in recent times with major breakouts seen on the monthly charts, which is expected to keep the prices strong for the next few quarters.
Jubilant Pharma looks poised to make the best use of this strong upside in the pharma space. It has confirmed trend reversal after forming higher highs and higher lows on the weekly charts implying a slow and gradual move towards ₹750-900.
In the short term, it has witnessed a fresh breakout from an inverse head and shoulder pattern on the weekly charts which is a reversal pattern in nature and can push the prices towards ₹600-650 levels.
The volumes have been above 20EMA on the weekly charts, implying strong accumulation and a fresh bullish MACD crossover can result in the start of a fresh uptrend.
Read all market-related news here
Disclaimer: The promoters of HT Media Ltd, which publishes Mint, and Jubilant Pharmova are closely related. There are, however, no promoter cross-holdings.
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.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
Published: 26 Dec 2023, 12:57 PM IST
