Shares to buy: Axis Bank, Wipro, Jio Financial among 11 stocks that may rise 7-23% in the next 3-4 weeks, say analysts

Shares to buy: The Indian stock market benchmark, the Nifty 50, clocked an impressive 2 per cent gain last week amid positive global cues, supported by the expectations of a US Fed rate cut this week on September 18.

Experts observed that the above-normal monsoon and expectations of an increase in demand during the festive season underpin market sentiment.

This week's big event is the outcome of the US FOMC meeting. A 25 bps rate cut by the US Fed may not significantly boost market sentiment as it is already priced in. On the other hand, a 50 bps rate cut may highlight deep stress in the US economy.

Experts suggest investors should be cautious in stock selection and bet on only quality stocks at this juncture. They recommend buying these 11 stocks, expecting them to rise 7-23 per cent in the next three to four weeks. Take a look:

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers

IDFC First Bank | Previous close: ₹73.42 | Buying range: ₹72-74 | Target price: ₹90 | Stop loss: ₹64 | Upside potential: 23%

Over the past few months, IDFC First Bank has consistently maintained a strong support level between ₹70 and ₹ ₹71 despite several challenges from downward market trends.

This price range has been tested multiple times, showcasing its ability to hold firm against selling pressure.

A bullish divergence has recently emerged on the daily chart, a key technical indicator suggesting a potential upward stock price reversal.

The importance of this support level is further emphasised by the fact that it aligns with the 0.618 Fibonacci retracement level of its previous upward move.

This alignment strengthens the case for the stock being an attractive buy at current prices.

Allcargo Logistics | Previous close: ₹68.56 | Target price: ₹78 | Stop loss: ₹59 | Upside potential: 14%

Recently, Allcargo Logistics has formed a bullish bat pattern, a harmonic chart pattern known for indicating potential reversals.

This pattern emerged after the stock created a triple bottom structure near its historical low of 61, a strong sign of price support.

The triple bottom pattern typically signifies that the stock has tested a key support level multiple times, failing to break below it, which suggests that the downward momentum is weakening.

Additionally, a bullish divergence was observed just before the stock reversed from the ₹61 level, where the price made a lower low, but the momentum indicator (such as the RSI or MACD) showed a higher low.

This divergence is a classic signal that the downtrend might be losing steam, hinting at a potential upward reversal.

"Buy the stock on dips until it reaches the ₹65 level, with an upside target of ₹78. To manage risk, a stop loss is suggested at ₹59, based on a daily closing price, which would limit potential losses if the stock breaks below this key support level," said Patel.

Schaeffler India | Previous close: ₹ 3,968.95 | Buying range: ₹3,900-3,980 | Target price: ₹4,300 | Stop loss: ₹3,750 | Upside potential: 8%

Schaeffler India's share price has recently been consolidating around its 200-day exponential moving average (DEMA), often considered a critical support level.

This consolidation indicates that the stock may be forming a strong base, hinting at a potential shift in its trend.

Additionally, from a technical indicator standpoint, the daily Relative Strength Index (RSI) has bounced back from the 40 level, a significant support area for the RSI.

Furthermore, the daily Directional Movement Index (DMI) has shown a "bull cross," where the positive directional index crosses above the negative, signalling that buying pressure may be increasing.

This combination of the RSI rebound and the DMI bull cross suggests that bullish momentum might be gathering strength, potentially leading to an upward move in the stock price in the coming sessions.

Shiju Koothupalakkal, Technical Research Analyst, PL-CAPITAL - Prabhudas Lilladher

Wipro | Previous close: ₹550.60 | Buying range: ₹540 -554 | Target price: ₹620 | Stop loss: ₹518 | Upside potential: 13%

The stock has indicated a higher bottom formation pattern on the daily chart, taking support near the important 50EMA level of ₹515.

It has gained momentum with several bullish candle formations to improve the bias.

The breach of ₹542 has further strengthened the trend. The RSI is on the rise and is well positioned, indicating a positive trend reversal to signal a buy.

Welspun Living | Previous close: ₹183.83 | Buying range: ₹180-187 | Target price: ₹220 | Stop loss: ₹170 | Upside potential: 20%

The stock has been in a strong uptrend and recently has corrected significantly from the peak of ₹213 to show signs of bottoming out near the 50EMA level of ₹179.

It has indicated a positive candle formation on the daily chart to improve the bias.

It is currently well-positioned with the RSI cooling off from the overbought zone.

It indicates a positive trend reversal to signal a buy and has immense upside potential from the current rate.

Jio Financial Services | Previous close: ₹351.90 | Buying range: ₹344-355 | Target price: ₹407 | Stop loss: ₹333 | Upside potential: 16%

The stock has gradually declined from the peak of ₹395 for the last four months. It has indicated a significant spurt to move past the important 50EMA at ₹336 to improve the bias, and currently maintaining above the 100-period moving average at ₹347 has further indicated conviction.

"With the RSI on the rise, we anticipate further rise, with immense upside potential visible from the current rate. With the chart technically well placed, we suggest buying the stock for an upside target of ₹407, keeping the stop loss of ₹333 level," said Koothupalakkal.

Mandar Bhojane, Equity Research Analyst, Choice Broking

Schaeffler India | Previous close: ₹3,968.95 | Buying price: ₹3,968.95 | Target price: ₹4400-4,500 | Stop loss: ₹3,760 | Upside potential: 13%

Schaeffler India stock has recently broken out of a descending triangle pattern with a significant increase in trading volume, indicating a potential bullish breakout.

"If the price closes above the ₹4,000 level, it may potentially reach short-term targets of ₹4,400 and ₹4,500. On the downside, immediate support is located at ₹3,810, which can be considered an opportunity to buy on dips. To prudently manage risk, it is advisable to set a stop loss at ₹3,760," said Bhojane.

Tube Investments of India | Previous close: ₹4,097.85 | Buying range: ₹4,097.8 | Target price: ₹4,400-4,600 | Stop loss: ₹3,900 | Upside potential: 12%

The stock has recently broken out of a descending triangle pattern with a significant increase in trading volume, indicating a potential bullish breakout.

"If the stock closes above the ₹4,100 level, it may reach short-term targets of ₹4,400 and ₹4,600. On the downside, immediate support levels are located at ₹3,970, which can be considered an opportunity to buy on dips," said Bhojane.

Sun TV Network | Previous close: ₹825.25 | Buying range: ₹825.25 | Target price: ₹900-925 | Stop loss: ₹784 | Upside potential: 12%

The stock has recently shown a potential breakout on the daily chart with a significant increase in trading volume, indicating a possible breakout and retest.

"If the stock closes above the ₹830 level, it may reach short-term targets of ₹900 and ₹925. On the downside, immediate support levels are located at ₹790, which can be considered an opportunity to buy on dips," said Bhojane.

Vishnu Kant Upadhyay, AVP of Research and Advisory at Master Capital Services

Axis Bank | Previous close: ₹1,217.45 | Buying range: ₹1,210-1,215 | Target price: ₹1,290-1,300 | Stop loss: ₹1,145 | Upside potential: 7%

Axis Bank's stock price has rebounded decisively from the 61.8 per cent retracement level of its previous upward movement, signalling a potential continuation of its upward trajectory towards the ₹1,290-1,300 range.

Last week, the stock broke out of a narrow consolidation zone between ₹1,130 and ₹1,195, supported by a notable increase in trading volume, indicating growing interest from new buyers.

The long-term trend remains robust, as evidenced by the formation of higher highs and higher lows on the weekly chart.

Additionally, the bullish divergence in the MACD, the RSI crossing above the 50-level, and the bullish crossover of the 10- and 21-day EMAs further strengthen the outlook for continued upward momentum.

Bharat Forge | Previous close: ₹1,616.25 | Buying range: ₹1,600-1,605 | Target price: ₹1,735-1,750 | Stop loss: ₹1,500 | Upside potential: 8%

Bharat Forge's share price has formed a bullish-engulfing candlestick pattern on the weekly chart, signalling a potential resumption of its upward trend from the current levels.

The stock continues to find strong support near the 21-week EMA, with the latest rebound from the ₹1,500-1,520 range reinforcing this level.

"As long as the stock remains above the 21-week EMA, we expect further upward movement towards the ₹1,740-1,750 zone. The 14-week RSI is shaping an ascending triangle pattern, and the MACD indicator shows signs of a reversal as the MACD histogram's decline has moderated, supporting a bullish outlook," said Upadhyay.

Campus Activewear | Previous close: ₹323.80 | Buying range: ₹315-320 | Target price: ₹368-380 | Stop loss: ₹292 | Upside potential: 17%

Campus Activewear is currently forming a rounding bottom pattern. It has recently broken through a key horizontal resistance level, accompanied by a significant increase in trading volumes, signalling strong buyer interest.

"The stock has consistently respected its 21-week EMA, and we have observed a sharp rebound from this level in recent sessions. Additional technical indicators, such as the MACD and RSI, have also turned bullish, reinforcing the outlook for further upside. The stock is now in a 'buy-on-dips' phase, where any price decline will likely attract renewed buying interest," Upadhyay said.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.