The strong comeback of bulls driven by super run in technology stocks after a long time helped the market hit a new high in the week ended January 12. In fact, the Nifty 50 comes closer to the much-awaited psychological 22,000 mark. Given the strong optimism, the bulls are likely to take the Nifty 50 to the 22,000-22,200 zone in near term with an immediate support at 21,800-21,700 levels, followed by crucial support at 21,500 mark, experts said, but they expect some consolidation post the achievement of said target zone.
During the last week, the Nifty 50 climbed 0.85 percent to end at new closing high of 21,894.55 and formed bullish candlestick pattern with long lower shadow on the daily charts, continuing higher highs for seventh consecutive week.
"At the current juncture, the milestone of 22,000 is just a step away and with the structural setup, 22,100-22,150 is the next potential target for the current week starting from January 15," Osho Krishan, senior analyst - technical & derivative research at Angel One said.
On the lower end, he feels 21,800-21,750 should now act as a cushion for any short-term blip, while strong support lies around the 21,600-21,500 zone.
Jigar Patel, senior manager - equity research at Anand Rathi looks more bullish than Osho, saying the rally above 22,000 could move towards 22,200-22,400 in the current week.
He feels the reading of long-short ratio of FII index futures suggests that Nifty still has some upside potential, but this could be the final stage of the rally, after which the market could see strong profit-taking in the market.
Meanwhile, the experts' stance remains bullish, but they advised that one needs to stay light on positions.
Moneycontrol collated a list of top 10 stock ideas for healthy return with the next 3-4 weeks perspective. The closing price of January 12 considered for the stock return calculation.
Expert: Omkar Patil, technical & derivatives analyst - institutional equity at Ashika Group
Godrej Properties: Buy | LTP: Rs 2,274 | Stop-Loss: Rs 2,185 | Target: Rs 2,500 | Return: 10 percent
The stock of Godrej Properties is exhibiting a distinct uptrend characterized by the formation of higher highs and higher lows. This upward movement is supported by increasing trading volumes, indicating a long build up.
Furthermore, the stock has consistently remained above its 12-day exponential moving average (EMA), providing further confirmation of the prevailing uptrend.
Going ahead, we expect the prices to move higher till the mark of Rs 2,500 where the stop-loss must be Rs 2,185 on a daily closing basis.
Mahanagar Gas: Buy | LTP: Rs 1,264 | Stop-Loss: Rs 1,210 | Target: Rs 1,375 | Return: 9 percent
MGL stock has successfully broken out of a significant consolidation phase within the range of Rs 1,000-1,150. The recent upward movement in its price was accompanied by a notable increase in trading volumes.
Additionally, the Relative Strength Index (RSI) on the daily timeframe has shown a hidden bullish divergence, reflecting presence of positive momentum.
Going ahead, we expect the prices to move higher till the mark of Rs 1,375 where the stop-loss must be Rs 1,210 on a daily closing basis.
Grasim Industries: Buy | LTP: Rs 2,111.55 | Stop-Loss: Rs 2,030 | Target: Rs 2,300 | Return: 9 percent
Grasim stock trend as accelerated as the steepness in the trend has started to rise. Notably, around Rs 2,050 level, the stock has undergone a change in polarity, emphasizing an overall positive sentiment in its trend.
Furthermore, the RSI reading above the 50 mark signals an increasing momentum in the ongoing trend.
Going ahead, we expect the prices to move higher till the mark of Rs 2,300, where the stop-loss must be Rs 2,030 on a daily closing basis.
Expert: Nandish Shah, research analyst (technical and derivative) at HDFC Securities
Power Mech Projects: Buy | LTP: Rs 4,734 | Stop-Loss: Rs 4,380 | Target: Rs 5,150-5,350 | Return: 13 percent
The stock price has broken out on the weekly line chart to see all-time closing high with higher volumes. Stock price has been forming bullish higher top higher bottom formation on the weekly chart. Momentum Indicators and oscillators are showing strength in the stock.
Suprajit Engineering: Buy | LTP: Rs 406 | Stop-Loss: Rs 380 | Target: Rs 435-455 | Return: 12 percent
The stock price has broken out from the downward sloping trendline on the weekly chart, adjoining the highs of week ending July 28, 2023 and September 8, 2023. Primary trend of the stock is positive as stock price is trading above important medium and long term moving averages.
Momentum indicators and oscillators like RSI and MFI (money flow index) are in rising mode and placed above 60 on the weekly chart. After breaking out from the downward sloping trendline, stock price has been consolidating for past two weeks which we believe is a buying opportunity.
Shipping Corporation of India: Buy | LTP: Rs 172.5 | Stop-Loss: Rs 160 | Target: Rs 186-198 | Return: 15 percent
The stock price has broken out on the weekly chart by surpassing the multiple top resistance of Rs 164 odd levels. Stock price has been forming bullish higher top higher bottom formation on the monthly chart. Primary trend of the stock is positive as stock price is trading above its important long-term moving averages.
Expert: Shrikant Chouhan, head – equity research at Kotak Securities
Punjab National Bank: Buy | LTP: Rs 97.72 | Stop-Loss: Rs 94 | Target: Rs 105 | Return: 7.4 percent
Post decline from the higher levels, the counter rebounded from its demand zone and witnessed a steady recovery from the lower levels. Additionally, on the daily charts, the counter has given a breakout from its sloping channel formation.
The upmoves in the counter suggest a new leg of bullish trend from the current levels.
L&T Finance Holdings: Buy | LTP: Rs 167.55 | Stop-Loss: Rs 160 | Target: Rs 180 | Return: 7.4 percent
After the remarkable up move, the stock is having a breather from last few sessions. The consolidation in the rangebound structure suggest bullish continuation chart formation.
Moreover, the stock comfortably closed above its short term moving average. Therefore, the stock is likely to resume its uptrend from the current levels.
Hindalco Industries: Buy | LTP: Rs 582 | Stop-Loss: Rs 560 | Target: Rs 625 | Return: 7.4 percent
After the recent selloff in the counter from the higher levels, the downward momentum had stopped. On daily charts, the counter has found support and reversed its trend from its important support zone along with decent volume activity.
The formation suggests at further bullish movement from the current levels.
Expert: Ashwin Ramani, derivatives analyst at SAMCO Securities
Infosys: Buy | LTP: Rs 1,613 | Stop-Loss: Rs 1,550 | Target: Rs 1,750 | Return: 8.5 percent
The IT major has been moving in a higher high higher low formation since making a low of Rs 1,185 on April 17, 2023. The stock with a current market price (CMP) of Rs 1,613, had multiple resistance around Rs 1,600 levels, having failed to sustain above the same since April 2022. The maximum Call open interest, which is the resistance for the stock, is placed at 1,600 strike.
The Future open interest (OI) indicated buildup of fresh long positions in Index futures supported by a spike in volumes. Short covering coupled with strong Put writing at 1,600 strike can fuel the fresh leg of rally in this stock.
A follow up buying from the current levels can lead to the price moving higher until Rs 1,750 levels in the next one month. The level of Rs 1,550 on the downside is expected to act as a support for the stock. It is advisable to buy at the current level with a stop-loss of Rs 1,550 and a target of Rs 1,750.
Just Dial: Buy | LTP: Rs 873 | Stop-Loss: Rs 840 | Target: Rs 1,050 | Return: 20 percent
Just Dial hit a 52-week high of Rs 944 on the daily chart on January 11, 2024 supported by a huge surge in volumes. With this, it also moved past and closed above its previous swing high of Rs 879 made on July 17, 2023. A Cup and Handle pattern is visible on the daily chart with multiple resistance around Rs 950 levels.
The price has been moving in a higher high higher low formation, indicating uptrend, since taking Fibonacci retracement support of 70.7 percent around Rs 513 levels on July 20, 2022, drawn from the low of Rs 250 made on March 23, 2020 to the high of Rs 1,138 made on July 14, 2021.
It is advisable to buy at the current level with a stop-loss of Rs 840 for an immediate upside target until the previous swing high of Rs 1,050 levels.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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