Stocks to buy this week- The Nifty 50 has been in the red in the last five trading sessions, falling nearly three percent. This decline is due to concerns that the Fed’s interest rate hike is not over and that interest rates will remain high longer than expected. This situation is expected not only to have a significant negative impact on the US economy but also to have global implications.
Foreign Institutional Investors (FIIs) have sold valuable fundamentals in the money market and this trend may continue for some time, putting pressure on Indian stocks.
Continued FII selling has held back the market in recent days. In the money market, FII sales have been ₹ 18,260,000 so far this month. With valuations remaining high after the recent pullback and US bond yields attractive (US 10-year bond yield around 4.46 percent), Finnish investments are likely to come under selling pressure as this trend continues,” said investment strategist VK Vijayakumar. At Geoit Financial Services.
“It would be unreasonable to expect foreign investors to buy aggressively when the US 10-year bond yield is around 4.46 percent and the dollar index is above 105. Even after the recent correction, the Nifty is trading around 20 times FY24 earnings, making. India is the most expensive market in the world,” said Vijayakumar.
Experts expect fluctuations in the market soon. They recommend following the inventory in the current situation. Based on the recommendations of experts and brokers, below are eight stocks for the next three to four weeks as they look good on technical parameters. See:
Union Bank of India | Ostumpanikt: ₹ 102–98 | Sihthind: ₹110-115 | Stop loss: ₹95
Union Bank of India’s weekly chart shows a break above the ₹97 level, forming a ‘cup and handle’ pattern with a bullish candle confirming the stock’s positive bias.
During pattern development, there was a significant decrease in volumetric activity, followed by a significant increase in volume at the discharge level.
The short-term support level for the stock is ₹83, which corresponds to a 38% Fibonacci retracement of the ₹60-97 price range. The weekly strength indicator RSI, given a cross above the reference line, generated a buy signal.
Coal India | Buying Range: ₹ 277-₹ 273 | Target Price: ₹ 299-₹ 313 | Stop loss: ₹263
On the weekly chart, Coal India convincingly broke the medium-term round bottom pattern at ₹ 264
In the first week of September 2023, supported by a large bullish candle that strongly suggests a major improvement.
The stock is currently maintaining its position above the breakout zone and is expected to continue rising.
The stock is well positioned above the 20, 50, 100, and 200-day moving averages, and daily SMA (Simple Moving Average), which indicates a positive trend in the stock.
The weekly strength indicator RSI is moving up and is above the reference line, indicating a positive change.
KSB | Price Range: ₹2960–2900 | Price: Rs 3130–3285 | Stop loss: ₹2830
On the weekly chart, KSB successfully broke above the “consolidation zone” between ₹ 2,890 and ₹ 2,550, accompanied by a large bullish candle, strongly suggesting a continuation of the medium-term uptrend.
The closing was accompanied by a significant increase in trading volumes, indicating increased market share and interest in the stock.
The stock is taking a rising high-low pattern on the weekly chart, forming an uptrend line that indicates a favorable trend. The weekly strength indicator RSI generated a buy signal when there was a breakdown above its reference line.
Aarti Industries | Ostuvantik: 500–505 ₹ | Sihthind: ₹ 580 | Pardon: ₹ 460
In the last two months, this counter was in the range of ₹ 450-475. At the beginning of September, it made a clean break from the aforementioned zone and remained comfortably above it.
Additionally, there is huge support in the form of a pivot point around ₹ 475. On the indicators front, the weekly MACD produced a bullish cross, indicating a further bullish counter.
Maruti Suzuki India | Buying Range: ₹ 10,350-₹ 10,550 | Target Price: ₹ 12,000 | Stop loss: ₹ 9500
managed to break through the psychological barrier of ₹ 10,000. The success came with huge volumes and thus looked genuine.
The theoretical long-term target for a breakout appears to be above ₹14,000. “Traders are advised to buy the stock in the range of ₹ 10,350-10,550 with a stop loss of ₹ 9,500 during the trading day to achieve an additional target of ₹ 12,000,” Patel said
Sterlite Technologies | Buy Range: ₹ 158-162 | Target Price: ₹ 195 | Cesu perdon: ₹145
In the last three months, this counter has consolidated between ₹ 145-155. Recently, it has clearly broken out of the said range and is currently at ₹171.
It also retraced its downtrend line quite nicely. The best thing about this reversal is that it bounced back from its monthly pivot area, which acted as a huge support.
Petronet LNG | Sihthind: ₹ 265 | Stop loss: ₹230
The stock maintained an uptrend and strengthened after a decent bounce to form a pennant with support near ₹ 230. The RSI is also in a good position to cool off from a highly oversold area. Further upside is expected from the current level, where huge upside potential is seen.
Union Bank of India | Ostumpanikt: ₹ 102–98 | Sihthind: ₹110-115 | Stop loss: ₹95
The stock has maintained a good base near the 95 level and is currently showing an impulsive recovery with a positive slope. Additionally, it formed an inverted head and shoulders pattern on the weekly chart, where the relative strength index indicates a trend reversal.
“The chart has turned attractive and we recommend this stock to buy and move up to the target of 120, keeping the stop loss at ₹ 95,” Parekh said.
Bandhan Bank | Tavoitehinta: ₹ 280 | Stop loss: ₹238
The stock made a higher-lower formation pattern on the daily chart and fell in the positive zone of the bear market, indicating strength and high potential to bounce back more in the coming days.
“RSI has also shown a reversal to correct the bias and we expect an upward move from here and in the range of ₹ 265-280. We recommend buying this stock with an upside target of ₹ 265 to hold at ₹ 238 to stop loss,” Parekh said.
