Stock to Buy: Top Stocks to Consider for High Returns in Short Term
Stock to Buy
Traders and investors are advised to adopt a buying approach in the current market conditions. The specified support level should be used as a stop loss, allowing for a potential upside move.
Notably, the Nifty index has recently reached an all-time high, indicating a bullish sentiment in the market.
A consolidation breakdown support has been identified on the daily chart, further affirming the presence of strong upward momentum.
Additionally, the Nifty index has successfully invalidated the dark cloud cover pattern on the weekly chart. It’s worth noting that when patterns fail, there is often a greater price movement compared to the initial pattern itself.
This suggests the potential for further upward movement in the short term.
As long as the Nifty index remains above the support level of 18,700, the overall trend is expected to remain positive. These support levels are crucial, as bearish put writers are actively engaged at these levels.
Therefore, it is unlikely that there will be a significant decline in the Nifty index in the near future.
The Nifty index is approaching a significant resistance level at 19,000. If this resistance level is decisively broken with strength, it could pave the way for a potential move towards 19,450.
Currently, there is a notable bullish sentiment in the Bank Nifty, with bulls establishing their control. The previous resistance level of 44,000 has now transformed into a strong support level, providing some reassurance to the bullish outlook.
However, it’s important to note that a bullish resistance is anticipated at 44,500, where put writers are actively engaged.
Once this resistance level is surpassed, the Bank Nifty is likely to advance towards 45,000. Traders and investors are advised to adopt a buying approach in light of these market conditions.
During this period, it is recommended to use the support level mentioned above as a stop-loss, ensuring risk management in trading and investment decisions.
Promising Stocks for Potential Returns: Kunal Shah, Senior Technical and Derivatives Analyst at LKP Securities Identifies the Following Stocks to Consider in the Coming Weeks:
Sun Pharmaceutical Industries: Buy | LTP: Rs 1,022 | Target: Rs 1,100-1,120 | Stoploss: Rs 998
Kunal Shah, Senior Technical and Derivatives Analyst at LKP Securities, suggests buying Sun Pharmaceutical Industries with a target price range of Rs 1,100-1,120, while setting a stoploss at Rs 998. He believes that this stock has the potential to deliver a 10 percent return over the next 3-4 weeks.
The daily chart analysis reveals a strong breakout in Sun Pharmaceutical Industries accompanied by increasing trading volume.
Furthermore, the stock has surpassed the previous two-week highs, indicating a bullish momentum in play. The momentum indicator RSI has confirmed a buy signal through a crawlover pattern.
Additionally, the stock is finding support at its 20-day moving average (20-DMA), which is expected to act as a protective barrier for the bulls.
Tata Motors: Buy | LTP: Rs 587 | Target: Rs 605-610 | Stoploss: Rs 574
Based on the analysis by Kunal Shah, Senior Technical and Derivatives Analyst at LKP Securities, it is recommended to buy Tata Motors with a target price range of Rs 605-610.
A stoploss is suggested at Rs 574. Shah believes that this stock has the potential to deliver a 4 percent return over the next 3-4 weeks.
Upon analyzing the daily chart, it is observed that Tata Motors has moved above the last contraction, indicating rising expectations and a potential upward move.
Additionally, the stock has formed above its near-term moving averages, suggesting a positive trend.
The Relative Strength Index (RSI) has shown a bullish crossover, further supporting the positive sentiment. In the short term, Tata Motors is expected to rise towards the target level of Rs 610.
NTPC: Buy | LTP: Rs 189 | Target: Rs 195-199 | Stoploss: Rs 184
According to Kunal Shah, Senior Technical and Derivatives Analyst at LKP Securities, it is recommended to buy NTPC with a target price range of Rs 195-199. A stoploss is suggested at Rs 184. Shah anticipates a potential 5 percent return for this stock over the next 3-4 weeks.
Upon analyzing the daily chart, a consolidation breakout is observed in NTPC accompanied by increasing trading volume.
This breakout indicates a potential upward move in the stock. The momentum indicator RSI has confirmed a buy signal through a crossover pattern, further supporting the positive outlook.
Additionally, NTPC has crossed its previous high on a closing basis, adding to the bullish undertone.
Investors should note that thorough research and individual risk assessment are crucial before making any investment decisions.
Consulting with a financial advisor or conducting independent analysis is advised to make well-informed choices.
Disclaimer: The opinions and investment advice provided on sharemarket.org.in are the personal views and recommendations of investment experts. It is advised that users consult with a certified expert before making any investment decision.
