Stocks to buy for long term: Hindalco, Tata Steel… THESE 5 stocks may jump up to 52% in 1 year, says Bonanza analyst

Stocks to buy for the long term: The Indian stock market benchmark Nifty 50 slipped about 0.70 per cent for the trading week ending Thursday, March 13. It ended 73 points, or 0.33 per cent, down at 22,397.20.

Friday, 14 March, was a holiday on account of Holi.

The index has declined 15 per cent from its peak of 26,277.35 on September 27, driven by sustained foreign capital outflows, weak corporate earnings, slowing economic growth, and escalating fears of a major trade war triggered by US President Donald Trump’s tariff policies.

Technical patterns are giving mixed signals for the index at this juncture.

According to Kunal Kamble, Senior Technical Research Analyst at Bonanza Group, the Nifty 50 historically tends to correct around 18 per cent. This places the index in a crucial accumulation zone, where any further dip presents an investment opportunity.

“Strong support is placed at 21,300, the election-period low, making it a key buyer level. On the daily timeframe, a morning star pattern was formed, while a Harami pattern on the weekly chart signals a potential short-term bullish reversal,” said Kamble.

“The bounce from 22,000 faces resistance at 22,700, where fresh short positions were built in the March series. A breakout above this level could trigger short covering toward 23,000, with further upside potential to 23,200 levels. With key supports nearby and a breakout of resistance likely to unlock further gains, investing in large-cap stocks could be beneficial at current levels,” said Kamble.

Kamble recommends buying the following five stocks for the long term, expecting them to rise 21-52 per cent. Do you won any?

Shares to buy for long-term

Tata Steel | Previous close: ₹150.88 | Target price: ₹200 and ₹230 | Stop loss: ₹120 | Upside potential: 52%

Tata Steel retraced to its 50EMA on the monthly timeframe before resuming its uptrend with a Hammer candlestick, signalling strong buying interest. In the current month, bulls have continued accumulating the stock.

The price trades above the 21EMA and 50EMA, confirming sustained strength. The RSI is moving upward after a cool-off, supporting the positive price action.

Additionally, DI+ has crossed above DI-, shifting towards an uptrend. “With momentum picking up, the stock remains well-positioned for further upside, with a stop loss of ₹120 for an upside target of ₹200-230,” Kamble said.

Kotak Mahindra Bank | Previous close: ₹1,985.10 | Target price: ₹2,620 and ₹2,800 | Stop loss: ₹1,660 | Upside potential: 41%

Kotak Mahindra Bank witnessed seller exhaustion in November 2024, followed by accumulation from December 2024, leading to a breakout as the price trades above its one-year close.

The stock has respected the 50EMA as strong support, confirming its importance. Trading above the EMA also suggests an uptrend continuation.

The RSI has broken out of a Symmetrical Triangle, supporting bullish momentum. Additionally, with a widening deviation, DI+ trading above DI-signals is a directional move in the near term.

The higher ADX trend indicates increasing strength in the uptrend, making the setup favourable for further upside.

“Overall, the technical setup favours a sustained uptrend, with a stop loss of ₹1,660 for an upward move towards ₹2,620 to ₹2,800,” said Kamble.

Hindalco Industries | Previous close: ₹677.35 | Target price: ₹850 to ₹950 | Stop loss: ₹570 | Upside potential: 40%

Hindalco retraced to its 21EMA on the monthly timeframe before resuming its uptrend with a bullish engulfing pattern, indicating strong buying interest.

In the current month, bulls have continued accumulating the stock. The price trades above the 21EMA and 50EMA, confirming the ongoing strength.

The RSI is moving upward after a cool-off, supporting the price action. Additionally, the widening deviation between DI+ and DI- suggests continuing the trend.

“With momentum building, the stock remains in a strong uptrend, with a stop loss of ₹570 for an upside target of ₹850 to ₹950,” said Kamble.

SBI Cards and Payment Services | Previous close: ₹829.85 | Target price: ₹1,020 and ₹1,150 | Stop loss: ₹710 | Upside potential: 39%

SBI Card has given a breakout from a descending triangle on the monthly timeframe, signalling a trend reversal.

The price surge during the breakout and a spike in volume confirm strong buyer interest and accumulation.

The stock has closed above the 21EMA (exponential moving average), indicating bullish momentum. Additionally, the RSI is trending upward, supporting price action.

The DI+ crossing above DI- signals a shift towards an uptrend, while the ADX moving higher suggests increasing strength in the move.

“Overall, the technical setup favours a sustained uptrend, with a stop loss of ₹710 for an upward move towards ₹1,020 to ₹1,150,” said Kamble.

Bajaj Finance | Previous close: ₹8,420.45 | Target price: ₹9,590 and ₹10,200 | Stop loss: ₹7,900 | Upside potential: 21%

Bajaj Finance broke its all-time high the previous month, signalling strong bullish momentum. The stock took support at the 50EMA and moved higher, confirming an uptrend continuation.

The RSI has broken past its resistance, further supporting positive price action.

Additionally, DI+ trading above DI- indicates a strengthening uptrend, while the ADX moving upward suggests increasing momentum in the rally.

“The technical setup points to a sustained upward towards ₹9,590 to ₹10,200 with a stop loss of ₹7,900,” said Kamble.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of the individual analyst or broking company, not Mint. We advise investors to check with certified experts before making any investment decisions.