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With market volatility on the rise, financial experts recommend a selection of eight stocks, including Maruti Suzuki India, Tata Power Company, and Power Grid Corporation of India, poised for technical breakouts and offering promising returns in the coming weeks.
As concerns mount over inflation, sustained high-interest rates, and a sluggish global economy, Indian stock market benchmarks Sensex and Nifty experienced a downturn of approximately 2.5% in August. Market experts are now suggesting a cautious approach, focusing on fundamentally sound stocks with strong technical indicators.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted the inflated valuations in the smallcap segment, particularly microcaps, driven by market momentum. He cautioned against chasing quick gains in stocks lacking solid fundamentals, advising long-term investors to prioritize the stability of high-quality large-cap companies.
In light of the current market uncertainty, analysts have identified eight stocks exhibiting promising technical setups for potential gains over the next three to four weeks. These recommendations are based on technical and fundamental analysis by various experts:
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers:
- Maruti Suzuki India: Target price ₹12,000, Stop loss ₹9,000. After a five-year consolidation, Maruti Suzuki broke through the ₹10,000 resistance with significant volume. Patel suggests buying in the ₹10,000-10,300 range, with a stop loss at ₹9,000, targeting ₹12,000. Long-term target is over ₹14,000.
- Sterlite Technologies: Target price ₹185, Stop loss ₹155. Consolidating for three months, the stock recently broke out of the ₹145-155 range and cleared a downward trendline. Patel advises buying in the ₹165-168 zone, targeting ₹185, with a stop loss at ₹155.
- Greenpanel Industries: Target price ₹441, Stop loss ₹349. After consolidating between ₹310 and ₹350, the stock broke out on a weekly scale and trades above major daily exponential moving averages. Patel recommends buying in the ₹380-382 range, with a stop loss at ₹349, targeting ₹441.
Gaurav Bissa, VP, InCred Equities:
- Tata Power Company: Target price ₹300, Stop loss ₹245. After two years of consolidation, Tata Power has shown a fresh breakout on weekly charts, with a bullish ABC follow-through breakout on the daily timeframe. The stock is trading above the Williams Alligator indicator, suggesting a strong uptrend potential.
- Maruti Suzuki India: Target price ₹11,200, Stop loss ₹9,700. Maruti Suzuki has been in a 17-year ascending channel pattern and is on the verge of a five-year breakout. Bissa suggests a target of ₹11,200 based on a five-year falling trendline pattern breakout.
- Orient Cement: Target price ₹230, Stop loss ₹185. Orient Cement has been in a consistent uptrend, retesting a breakout area after some profit booking. Bissa notes a multi-swing and bullish flag breakout with solid volumes, indicating potential for fresh life highs.
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher Pvt. Ltd:
- Power Grid Corporation of India: Target price ₹275, Stop loss ₹240. After a short correction, the stock has consolidated near the lower base of a channel pattern and shows signs of improvement. Parekh sees immense upside potential.
- Mahindra & Mahindra Financial Services: Target price ₹335, Stop loss ₹288. Recovering significantly after a correction, the stock has moved past the 50EMA level, indicating improvement in bias. Parekh suggests a further rise is likely.
- CIE Automotive India: Target price ₹577, Stop loss ₹496. Witnessing a pullback after a short correction, the stock has moved past the 50EMA level. Parekh recommends buying and accumulating the stock, targeting ₹577.
Disclaimer: The views and recommendations provided are those of individual analysts and broking companies and do not constitute financial advice. Investors are advised to consult with certified experts before making any investment decisions.
