Stocks to buy in a rising market: Reliance, SBI, Tata Motors, Infosys, BDL, HAL— experts suggest 9 stock picks

Stocks to buy: After two consecutive days of losses, Indian stock market witnessed healthy gains in intraday trade on Monday, April 28. The Sensex and the Nifty 50 rose over a per cent on easing trade war concerns, healthy foreign capital inflow and largely in-line Q4 earnings.

However, tensions between India and Pakistan after the Pahalgam terror attack remain a key variable for the domestic market. India has so far dealt with the situation diplomatically and strategically, avoiding a hyper-aggressive, retaliatory, war-like response.

On the technical front, the Nifty 50 is exhibiting bullish momentum.

According to Prashanth Tapse, Senior VP (Research), Mehta Equities, the Nifty 50 is currently showing a positive trend with key support at 24,150 and resistance at 24,350. The index has been forming higher highs and higher lows, suggesting bullish momentum.

Tapse said a breakout above the 24,350 resistance could push the index towards the 24,500-24,600 range in the short term.

"With strong buying interest, the overall outlook remains positive, and the uptrend is expected to continue unless the support at 24,150 is breached," said Tapse.

Rising markets may lure investors to bet on stocks aggressively. However, experts say, one must be prudent about selecting stocks at this juncture because the chances of volatility are high.

Prashanth Tapse of Mehta Equities and Kunal Kamble of Bonanza Group recommend the following nine stocks to buy for the medium term. Do you own any?

Stock picks for the medium term

Expert: Prashanth Tapse, Senior VP (Research), Mehta Equities

State Bank of India (SBI)

SBI has support near ₹810 and resistance around ₹860. The stock shows a bullish trend, confirmed by a breakout above key levels, indicating potential upside continuation towards ₹860-880.

"SBI has underperformed the Nifty Bank index over the last month, and this gives a lot of opportunity for SBI to lead the sector in the short term. Buy the stock at ₹820," said Tapse.

Voltas

The summer sale theme is intact, which can deliver better earnings in the coming quarter.

"Buy Voltas stock at ₹1,241, with support at ₹1,210 and resistance at ₹1,280. The stock has broken above its key trendline resistance, suggesting a strong upward movement towards ₹1,300-1,320, with strong momentum," said Tapse.

Infosys

Infosys is forming a higher-high pattern and has successfully broken above a resistance zone, confirming a bullish trend towards ₹1,550-1,600.

"The IT index may outperform. Buy the stock at ₹1,479, with support at ₹1,440 and resistance near ₹1,520," Tapse said.

SBI Cards and Payment Services

After the Q4 results, SBI Cards presented a great opportunity, which matched the consumption theme in the coming quarters.

"Buy the stock at ₹865, with support at ₹840 and resistance around ₹900-920. The stock is testing resistance after a strong upward move, and a breakout above ₹880-890 could trigger further gains to ₹900-920," said Tapse.

Tata Motors

The worst is behind for the stock concerning global uncertainty.

"Buy Tata Motors at ₹668, with support at ₹660 and resistance at ₹700. The stock has recently broken out of a consolidating range, indicating a positive trend with potential targets near ₹700-720 if the breakout sustains," said Tapse.

Expert: Kunal Kamble, Senior Technical Research Analyst at Bonanza Group

Bharat Dynamics (BDL)

BDL has given a breakout of a double bottom pattern with increasing volume, indicating a bullish trend. 

The price has traded above the 21 and 50 exponential moving averages (EMAS), indicating bullishness. It also broke out of the recent consolidation zone, suggesting bull dominance. The RSI trades in a higher zone, further supporting the bullish outlook.

"A long position can be initiated in BDL with a strict stop loss of ₹1,300 for an upside move towards ₹1,810," said Kamble.

Reliance Industries

Reliance has witnessed a breakout above its key resistance level, highlighting bullish dominance in the stock. 

After a five-month consolidation period, the stock has successfully breached its resistance with decent volume, indicating strong buying interest at current levels. 

Additionally, the price action shows a close above the 21-day and 50-day EMAS, which further supports the bullish sentiment. The momentum indicator, MACD, also trades above its signal line and is positioned above the zero line, signalling a continuation of the uptrend.

"Given the current technical structure, Reliance appears poised for further upside. The next resistance is placed at ₹1,450, and as long as the stock holds above the support level of ₹1,280, the bullish outlook is expected to remain intact," said Kamble.

Hindustan Aeronautics (HAL)

HAL has broken above its falling trendline resistance, indicating a potential change in trend. The increase in volume during today’s session further highlights buyers' willingness to accumulate the stock at current levels. 

The stock has also received support at the 21-day EMA, which is likely to act as strong support in the coming sessions. 

The price trading above the fast 21 EMA and the slow 50 EMA further reinforces the bullish sentiment. 

Additionally, the RSI, after a brief cooldown, has resumed its upward movement, lending further support to the positive price action.

"Based on the current technical setup, HAL is expected to trade higher as long as it holds above the ₹4,050 level. A move towards the ₹5,050 mark can be anticipated if this support sustains," said Kamble.

SBI

A throwback is observed in SBI following the breakout of an Inverse Head and Shoulders pattern, providing an opportunity to enter at lower levels. 

A divergence between the price and RSI led to a throwback towards the neckline, offering a healthy retest of the breakout zone. Despite the pullback, the price trades above the 21-day and 50-day EMAS, indicating that the uptrend remains intact. 

The MACD line also trades above the Signal Line, further confirming the bullish trajectory of the stock. The breakout of the Inverse Head and Shoulders pattern, price positioning above key EMAS, and supportive momentum indicators all point towards continued bullishness.

"A dip towards the neckline should be viewed as a buying opportunity, as long as the stock holds above the ₹765 level," said Kamble.

Delhivery

Delhivery has given a breakout from a nine-week consolidation phase, indicating strong buyer dominance. The price trades above the 21-day and 50-day EMAS, reinforcing the bullish trend. 

An increase in volume on the breakout day further highlights buyers' willingness to accumulate the stock at current levels. The momentum indicator RSI is moving in the northern direction, confirming the positive price action.

"Based on the above technical setup, a long position can be considered in Delhivery between ₹290 and ₹310, with a strict stop loss placed at ₹240. On the upside, the stock is expected to move towards the ₹400 level," Kamble said.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.