This week marks the beginning of a new calendar year.
Participants will be eyeing auto sales number which starts pouring in from the beginning of the month. Besides, macroeconomic data such as core sector data and IHS Markit India Manufacturing PMI are scheduled on December 31 and January 2, respectively.
We expect the prevailing consolidation to extend further and Nifty to hover within 12,100-12,400 zone.
However, there will be no shortage of trading opportunities as movement on the stock-specific front would continue on both sides. Traders should focus more on stock selection.
Here are three buy stocks for the next 3-4 weeks:
Bharat Petroleum Corporation | Buy | LTP: Rs 493.05 | Target : Rs 520 | Stop loss: Rs 475 | Upside: 5 %
After a strong surge to its record high, BPCL has witnessed decent profit-taking in the last two months and reached closer to the support zone around Rs 470.
Technically, it has formed a flag pattern on the weekly chart during that corrective phase and looks all set for a rebound now.
Federal Bank | Buy | LTP: Rs 87.55 | Target: Rs 91 | Stop loss: Rs 85 | Upside: 4%
Federal Bank is trading on the verge of a fresh breakout after spending nearly four months in a consolidation range.
The chart pattern combined with the indication from the oscillators is also pointing towards a steady rise from hereon.
Vedanta | Buy | LTP: Rs 154.50 | Target: Rs 162 | Stop loss: Rs 150 | Upside: 5%
Vedanta is showing signs of trend reversal after spending nearly one and a half years in a corrective phase. The recent recovery in the metal space is further adding to the positivity.
We suggest initiating fresh longs positions as per the given levels of Rs 153-155.
(The author is VP- Research at Religare Broking)Disclaimer: The views and investment tips expressed by investment experts 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.