Stocks to buy: IndiGo, Bajaj Finserv, Dixon Tech among 12 stocks that may rise 5-16% in next 2-3 weeks, say analysts

Stocks to buy: Nifty 50, the key index of the Indian stock market, witnessed a healthy gain of 1.2 per cent for the week ended Friday, August 23, extending the gains into the second consecutive week, supported by positive global cues.

Recent US macroeconomic data allayed recession fears while rate cut hopes have grown stronger. US Federal Reserve Chair Jerome Powell said in his keynote speech at the Fed's annual economic conference in Jackson Hole, Wyoming, that the central bank was ready to pivot on monetary policy. He, however, did not reveal the magnitude and timing of rate cuts.

According to experts, a 25 bps rate cut in September looks almost certain, and it will augur well for the market.

The Indian stock market may witness healthy gains in the medium and long term due to the prospects of solid economic growth and strong domestic buying. However, elevated valuation remains a concern that can cap the market's upside in the short term.

Experts advise investors to consider buying stocks with favourable technical indicators for the short term.

Based on the recommendations of several experts, here are 12 stocks that can rise 6-25 per cent in the next 2-3 weeks. Take a look:

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

Borosil Renewables | Previous close: ₹513.55 | Buying range: ₹510-515 | Target price: ₹585 | Stop loss: ₹475 | Upside potential: 14%

Borosil Renewables has recently experienced a significant price decline after reaching ₹573, losing around 15 per cent.

The stock has now found support in the ₹490-500 range, which is a historically strong level.

This support zone is critical as it also coincides with the 200-day simple moving average (SMA), a key technical indicator that often serves as a strong level of support.

The Relative Strength Index (RSI) on the hourly chart shows a bullish divergence at this support level, which signals that the stock may be poised for a reversal.

This makes the current price levels of ₹510-515 attractive for taking a long position.

"Given these technical indicators, the stock is recommended for buying within this price range, with an upside target of ₹585. To manage risk effectively, it is advisable to place a stop loss at ₹475 on a daily closing basis," said Patel.

Laxmi Organic Industries | Previous close: ₹280.10 | Buying range: ₹278-282 | Target price: ₹330 | Stop loss: ₹255 | Upside potential: 18%

Over the past seven to eight weeks, Laxmi Organic has been trading within a relatively narrow range of approximately ₹235-270, indicating a period of consolidation.

However, the stock recently broke out of this range and is now positioned near the ₹280 mark, signalling a potential shift in its trend.

This breakout is particularly noteworthy because it has violated a bearish trendline that has constrained the stock's movement for nearly three years, and volume is picking up.

The time it took for this breakout to occur makes it a significant event, suggesting a potential change in the stock's long-term trend.

Additionally, the RSI, a momentum indicator, has consistently remained above 50 throughout this period.

This sign of strength indicates that the stock has maintained positive momentum despite the consolidation.

Birlasoft | Previous close: ₹601.25 | Buying range: ₹600-610 | Target price: ₹666 | Stop loss: ₹575 | Upside potential: 11%

After recently hitting the ₹550 mark, Birlasoft has staged an impressive recovery, climbing up to the ₹640 level.

However, in the past four trading sessions, the stock has experienced a correction, pulling back to the ₹590 level, which is significant for several reasons.

Firstly, this level aligns with the stock's previous breakout top, serving as a crucial support zone.

The ₹590 mark also coincides with the breakout of a bearish trendline, as shown on the chart.

This convergence of support factors enhances the importance of the ₹590 level, suggesting it could act as a strong floor for the stock.

On the technical indicator front, the RSI on the hourly chart has reversed from the 40 level, a move that often signals a potential bullish reversal.

This reversal in RSI adds to Birlasoft's attractiveness as a buying opportunity at current levels.

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

Dixon Technologies (India) | Previous close: ₹13,270.55 | Buying price: ₹13,200 | Target price: ₹14,100 | Stop loss: ₹12,600 | Upside potential: 6%

The price has successfully breached a critical horizontal resistance level, which also appears as a double top on the daily chart.

A significant increase in trading volumes, surpassing the 21-day volume average, indicates heightened participation from new buyers.

The price structure remains robust, characterized by a consistent pattern of higher highs and higher lows.

A bullish crossover between the 10-day and 20-day EMAs (exponential moving averages), coupled with positive momentum in the MACD indicator, further supports the likelihood of continued bullish momentum.

JK Paper | Previous close: ₹475.20 | Buying price: ₹475 | Target price: ₹520 | Stop loss: ₹451 | Upside potential: 9%

Prices have undergone a healthy correction of nearly 25 per cent from their all-time high.

They are now trading near a crucial horizontal support level, previously a significant resistance during the last rally.

The potential for a reversal from this level is strong, as the 61.8 per cent Fibonacci retracement of the previous bull run has now been completed.

Currently, prices are holding above the 100-day EMA, and the MACD indicator is beginning to show signs of a bullish reversal.

InterGlobe Aviation (IndiGo) | Previous close: ₹4,710.45 | Buying price: ₹4,660 | Target price: ₹5,020 | Stop loss: ₹4,450 | Upside potential: 7%

The price movement has broken out from a tight horizontal range, accompanied by a significant increase in trading volumes.

The bullish crossover between the 10-day and 20-day EMAs and the RSI above 50 further solidifies the case for a sustained upward trend.

The MACD indicator also reflects bullish sentiment, with the MACD line crossing above the signal line and the histogram printing in green.

Mandar Bhojane, Equity Research Analyst, Choice Broking

Bajaj Finserv | Previous close: ₹1,639.90 | Buying price: ₹1,639.9 | Target price: ₹1,800, ₹1,900 | Stop loss: ₹1,500 | Upside potential: 16%

On the weekly chart, the stock shows signs of a potential breakout from a symmetrical triangle, accompanied by a significant increase in trading volume. This suggests strong bullish momentum.

"If the price closes above the ₹1,660 level, it could reach short-term targets of ₹1,800 and ₹1,900. To prudently manage risk, it is advisable to set a stop loss at ₹1,500 to protect your investment in case of an unexpected market reversal," said Bhojane.

Westlife Foodworld | Previous close: ₹878 | Buying price: ₹878 | Target price: ₹1,000, ₹1,100 | Stop loss: ₹780 | Upside potential: 25%

The stock shows signs of a potential breakout from a falling trend line, accompanied by a significant increase in trading volume. This suggests a possible bullish momentum.

"If the price closes above the ₹880 level, it could potentially reach short-term targets of ₹1,000 and ₹1,100. To prudently manage risk, it is advisable to set a stop loss at ₹780 to protect your investment in case of an unexpected market reversal," said Bhojane.

Radico Khaitan | Previous close: ₹1,844.45 | Buying price: ₹1,844.45 | Target price: ₹2,000, ₹2,110 | Stop loss: ₹1,700 | Upside potential: 14%

The stock shows signs of a potential breakout from its daily range, accompanied by a significant increase in trading volume. This suggests a possible bullish momentum.

"If the price closes above the ₹1,850 level, it could reach short-term targets of ₹2,000 and ₹2,110. To prudently manage risk, it is advisable to set a stop loss at ₹1,700 to protect your investment in case of an unexpected market reversal," said Bhojane.

Shiju Koothupalakkal, Technical Research Analyst, PL Capital

Carysil | Previous close: ₹892.20 | Buying range: ₹875 - 900 | Target price: ₹995 | Stop loss: ₹840 | Upside potential: 12%

The stock has been sliding down with a descending channel pattern on the daily chart.

It has indicated a positive bullish candle formation to give a breakout above the channel resistance zone at ₹855.

With bias improving, it is expected to rise further in the coming days.

It has just moved above the important 200-period MA (moving average) at ₹882 to strengthen the trend further, and we can expect further upward moves until the next targets of ₹960 and ₹995 levels, respectively.

The RSI rising from the oversold zone indicates strength and has much upside potential visible from the current rate.

Samvardhana Motherson International | Previous close: ₹197.72 | Buying range: ₹194-198 | Target price: ₹227 | Stop loss: ₹184 | Upside potential: 15%

The stock has witnessed a short period of correction. It has taken support near the ₹170 level, indicating a decent pullback. It has also taken support near the 50EMA and improved the bias, anticipating further rise.

The RSI indicates a gradual rise from the oversold zone, indicating strength, with much upside potential visible from the current rate.

Kalpataru Projects International | Previous close: ₹1,298.25 | Buying range: ₹1,280-1,310 | Target price: ₹1,470 | Stop loss: ₹1,230 | Upside potential: 13%

The stock has maintained a strong uptrend. After a short consolidation and taking support near the 100-period MA of ₹1,220, it has again picked up with a solid bullish candle formation on the daily chart, moving past the 50EMA level of ₹1,255 to improve the bias.

It is expected to rise further, with the chart well-poised for a further upward move. The RSI has indicated a positive trend reversal to signal a buy.

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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.