Stocks to buy: HUL, Kotak Mahindra Bank, Tata Steel among 10 stocks that can jump 5-23% in the next 3-4 weeks

Equity benchmark Nifty 50 opened nearly 65 points higher at 22,403.50 on Monday, March 4, marking the fourth consecutive session of gains as sentiment remains upbeat on strong domestic macro numbers.

Experts, however, underscore the market's rich valuation and they expect the market to see some consolidation in the near term due to rich valuations.

"There is room for optimism but there is no case for unbridled bullishness. The SEBI advisory to mutual funds regarding the excessive valuations in the mid and small-cap schemes is likely to restrain the performance of the broader market. The irrational exuberance in the broader segment has no fundamental justification," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Brokerage firm Axis Securities expects Nifty to trade in the range of 22,800-22,000 with a positive bias for the week.

"If the Nifty 50 crosses and sustains above the 22,500 level, it would witness buying, leading the index towards 22,600-22,800 levels. However, if the index breaks below the 22,300 level, it would witness selling, taking the index towards 22,150-22,000," said Axis Securities.

The market may see volatility in the near term and considering this, experts RECommend buying technically and fundamentally sound stocks at the current juncture. Based on the recommendations of several experts, below are 10 stocks that one can consider buying for the next three to four weeks. Take a look:

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Axis Securities

Tata Steel | LTP: ₹155.25 | Buying range: ₹153-149 | Target price: ₹167-177 | Stop loss: ₹143 | Upside potential: 14%

On the weekly chart, Tata Steel has breached the multi-year resistance around ₹150 level, suggesting a continuation of the medium-term uptrend. 

The previous resistance level of ₹150 is anticipated to now serve as support, adhering to the principle of polarity, thereby establishing a supportive zone for the stock's price action. 

The stock is trending in an upward-sloping channel, recently finding support at the lower band and now heading towards the upper band.

The weekly Relative Strength Index (RSI) is in bullish mode, maintaining above an upward-sloping trendline, supporting the upward price action.

Also Read: Adani Ports share price hits record high as cargo volumes surge 33% in February

Jamna Auto Industries | LTP: ₹135.70 | Buying range: ₹133-129 | Target price: ₹151-163 | Stop loss: ₹122 | Upside potential: 20%

Jamna Auto exhibits a bullish breakout above the symmetrical triangular pattern at ₹125 on the weekly chart, indicating the potential continuation of a medium-term uptrend after two years of consolidation. 

Increased volume activity at the breakout suggests an influx of market participation. 

The stock's closing above the upper Bollinger Band on the weekly chart has generated a buy signal. 

The weekly strength indicator RSI is in a bullish mode and is holding above its reference line, indicating a positive bias.

Triveni Turbine | LTP: ₹514.15 | Buying range: ₹510-500 | Target price: ₹605-630 | Stop loss: ₹455 | Upside potential: 23%

Triveni Turbine demonstrates a bullish breakout above the pennant pattern at ₹474 on the weekly chart, signalling the potential continuation of a post-consolidation rally. 

The stock has broken out of a medium-term consolidation phase between ₹440-340, suggesting the initiation of an uptrend following the breakout from consolidation. 

The stock is holding above key averages of 20, 50, 100, and 200 days simple moving average (SMA), signalling a strong uptrend in the stock. 

The weekly strength indicator RSI is in a bullish mode and is holding above its reference line indicating a positive bias.

Also Read: Multibagger find: Ajay Devgn invests ₹2.7 crore in this midcap stock that has gained over 800% in 1 year

Havells India | LTP: ₹1,576.45 | Buying range: ₹1,555-1,525 | Target price: ₹1,685-1,765 | Stop loss: ₹1,470 | Upside potential: 12%

On the weekly chart, Havells India has breached a two-and-a-half-year consolidation' zone between ₹1,500-1,050, with a strong bullish candle indicating the initiation of an uptrend following the breakout from consolidation. 

Volume activity declined during the pattern formation; however, there was an increase in volume at the breakout, indicating heightened market participation. 

The stock is exhibiting a pattern of higher high-low formations on the weekly chart and holding above the upward-sloping trendline, signalling positive bias. 

The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal.

Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher

Hindustan Unilever (HUL) | LTP: ₹2,416.20 | Target price: ₹2,670 | Stop loss: ₹2,300 | Upside potential: 11%

The stock has witnessed a decent correction and having taken support near the long-term trendline zone of ₹2,350, it has indicated a pullback to improve the bias. 

The RSI is also improving to indicate a trend reversal with the potential to carry on with the positive move further ahead.

NMDC | LTP: ₹234.70 | Target price: ₹265 | Stop loss: ₹220 | Upside potential: 13%

The stock after the recent slide has bottomed out near the 50EMA (exponential moving average) level of ₹220. 

It has indicated a pullback to improve the bias. The stock has been in a strong uptrend and after a short correction at regular intervals, it has gathered strength to continue with the uptrend. 

The RSI is also improving and is on the rise to indicate a trend reversal.

Also Read: Japan's Nikkei breaches 40,000 level for first time led by tech stocks

REC | LTP: ₹462.25 | Target price: ₹515 | Stop loss: ₹422 | Upside potential: 11%

The stock after the recent slide showed signs of bottoming out near ₹424 and indicated a pullback with a positive candle formation on the daily chart almost moving past the 50EMA level of ₹444 to improve the bias. 

With the chart looking good and the RSI well placed, it has indicated a trend reversal to signal a buy expecting further upward move in the coming days.

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

Kotak Mahindra Bank | Last traded price (LTP): 1,723.70 | Target price: ₹1,820 | Stop loss: ₹1,665 | Upside potential: 6%

Following a peak close to the 1850 level, Kotak Mahindra Bank underwent a substantial decline of nearly 187 points, marking a significant decrease of around 10 per cent in its value. 

However, in the past month, it established a prolonged bottom around the 1.13 harmonic ratio. 

Interestingly, a bullish AB=CD pattern has also emerged near the aforementioned ratio, providing further bullish confirmation. 

Additionally, on the indicator front, there is a bullish divergence observed on the daily stochastic (please refer to the chart), indicating a positive outlook for the stock. 

"One may consider buying the stock in the range of ₹1,705-1,730 with an upside target of ₹1,820 and a stop loss set at ₹1,665," said Patel.

IndusInd Bank | LTP: ₹1,526 | Target price: ₹1,600 | Stop loss: ₹1,475 | Upside potential: 5%

After reaching a peak near the ₹1,695 mark, IndusInd Bank experienced a significant downturn of almost 267 points, representing a substantial drop of approximately 15.75 per cent in its price. 

However, over the last two months, it formed a triple bottom structure between the 100 and 200-day exponential moving averages (DEMA), presenting an enticing opportunity at its current position. 

Recent trading activity has seen IndusInd Bank breaking through the bear trendline while simultaneously showing bullish divergence on daily stochastics, indicating a favourable outlook for the stock. 

"Investors may consider initiating fresh long positions within the range of ₹1,505-1,530, with an upside target of ₹1,600. To manage risk, a stop loss order could be placed near ₹1,475 on a daily closing basis," said Patel.

Piramal Enterprises (PEL) | LTP: ₹934.85 | Target price: ₹1,055 | Stop loss: ₹865 | Upside potential: 13%

In September 2023, PEL reached its zenith, soaring to nearly ₹1,140. 

However, it subsequently endured a substantial downturn, plummeting by almost 300 points, registering a significant 26 per cent decline. 

Presently, the stock seems to have discovered a level of support within the bracket of ₹840-900, suggesting a potential stabilisation in its price movement. 

Notably, recent market observations have unveiled the formation of a double bottom pattern on the daily chart, accompanied by bullish divergence—a promising indication for traders. 

This confluence of technical signals presents an enticing opportunity for market participants. 

"In light of these developments, traders are advised to contemplate initiating long positions within the range of ₹920-940. The target for this bullish trade is at ₹1,055. To manage risks effectively, it is recommended to set a stop loss level at ₹865 on a daily closing price," said Patel.

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.