5 value buys that could return 11-16% return in 1-2 months

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26 Aug, 2025 12:21

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Ashish Chaturmohta

The markets got off to a positive start for the week following positive global cues. The Nifty closed at 10,853, up 0.74 percent on Monday. The index formed a ‘Hanging Man’ kind of candlestick pattern on the daily chart, which is a reversal pattern.

The index has managed to close above the falling resistance line connecting the high of 11,172 after previous failed attempts. The daily moving average convergence divergence (MACD) line has given a positive crossover, with its average suggesting that the consolidation phase is now over.

If it continues to hold above 10,790, the index can rally initially towards 10,929 and then possibly towards 11,100 levels.

On the downside, a break below 10,790 levels could see profit-booking towards 10,710 levels. In Nifty options, a significant amount of put writing was seen at 10,700 and 10,800 strikes, while call writing was seen at the 11,000 and 11,100 strikes suggesting that the range is shifting higher.

Decline in India VIX to 12.39 levels over the past 1 week has been supportive for the market.

Here is a list of top 5 stocks that could return 11-16 percent in the next 1-2 months:

Yes Bank Limited: Buy| CMP: Rs 363| Stop loss: Rs 348| Target: Rs 410| Return 13%

The stock has been range bound between the range of Rs 380 and Rs 285 odd levels in the last one year. The stock has formed a bullish inverted head and shoulders pattern on the weekly chart and trading below its breakout level.

The daily MACD line has moved above the neutral level of zero and on the weekly chart, it has given a positive crossover with its average above the neutral level of zero which suggests that the stock has started a fresh uptrend.

The price has given a breakout from the Bollinger band with the expansion of band and is now trading above the upper band indicating strength in the uptrend.

In the last three sessions, the stock has witnessed good volumes and the momentum suggests buying participation. The stock is likely to see a breakout on the upside from the pattern. Thus, it can be bought at current levels and on dips to Rs 360 with a stop loss below Rs 348 and a target of Rs 410 levels.

Exide Industries Limited: Buy| CMP: Rs 268| Stop Loss: Rs 253| Target: Rs 310| Return 15%

The stock has formed a rounding bottom pattern over a period of one year between the levels of Rs 250 and Rs 195 odd levels. At the start of the month of May, stock witnessed a breakout from the base on huge volumes and price momentum to touch an all-time high of Rs 270 levels.

Since then the price has been trading in a range between Rs 270 and Rs 250 odd levels and is consolidating above the breakout level for the past two months now.

On the daily chart, the price has given a breakout from the Bollinger band with the expansion of band and is trading above the upper band suggesting that the stock is likely to see a start of a fresh uptrend.

MACD line on the daily chart has moved above the neutral level of zero after two months indicating consolidation phase is over. Thus, the stock can be bought at current levels and on dips to Rs 263 with a stop loss below Rs 253 and a target of Rs 310 levels.

Maruti Suzuki India Limited: Buy| CMP: Rs 9,375| Stop Loss: Rs 9,050| Target: Rs 10,400| Return 11%

The stock is in a long-term uptrend forming higher tops and higher bottoms on the weekly as well as on the monthly chart. In December last year, it hit an all-time high of Rs 9,966 and since then the price was in a corrective decline phase for more than six months.

Now, the stock has crossed its falling resistance trend line with momentum indicated by a long bullish candle on the weekly chart.

The weekly MACD line has given a positive crossover with its average for the first time since January after testing the equilibrium level. The price has given a breakout from the Bollinger band with the expansion of band and closed above the upper band on daily as well as a weekly chart.

Thus, the stock can be bought at current levels and on dips to Rs 9,260 with a stop loss below Rs 9,050 and a target of Rs 10,400 levels.

KPIT Technologies Limited: Buy| CMP: Rs 280| Stop Loss: Rs 265| Target: Rs 320| Return 14%

The stock is in an uptrend forming higher tops and higher bottoms for the last one year. The stock hit an all-time high of Rs 290 last month, and since then the price has been consolidating at higher levels.

The stock has formed a symmetrical triangle pattern which are generally expected to give a breakout in the direction of the previous trend which in this case is on the upside.

The price has formed a long bullish candle with above average volumes and closed at the breakout. The relative strength index or the RSI on the daily chart has given a positive crossover with its average suggesting stock is likely to see a breakout on the upside.

Thus, the stock can be bought at current levels and on dips towards Rs 275 with a stop loss below Rs 265 and a target of Rs 320 levels.

Berger Paints (I) Limited: Buy| CMP: Rs 301| Stop Loss: Rs 285| Target: Rs 340-350| Return 16%

The stock has been consolidating at higher levels between Rs 280 and Rs 230 odd levels for the past one year. In May, the stock witnessed a breakout on the upside backed back by high volumes.

Since then the price has been trading above its previous highs and is now consolidating. In the last couple of session, the stock has witnessed high volumes with positive price action which indicates buying participation in the stock.

The price has given a breakout from the Bollinger band with the expansion of band and is trading above the upper band which suggests that the stock is likely to see a continuation of the trend on the upside.

The daily MACD has given a positive crossover with its average and moved above the neutral level of zero. Thus, the stock can be bought at current levels and on dips towards Rs 295 with a stop loss below Rs 285 for a target of Rs 340-350 levels.

Disclaimer: The author is Head Technical and Derivatives, Sanctum Wealth Management. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.