Stocks to buy: PVR INOX, Kalyan Jewellers among 10 stocks that may rise 8-17% in the next 3-4 weeks, say analysts

Stocks to buy: Indian stock market benchmark Nifty 50 dropped over half a per cent in morning trade on Monday, June 24, with select heavyweights, including Reliance Industries and HDFC Bank, among the top drags.

Indian stock market has been hitting record highs in the last few sessions, but it is still trading with capped gains due to the lack of fresh triggers. Market experts believe the market may remain in a range till the Union budget in July is announced. Moreover, the slow progress of monsoon rains, mixed global cues, and waning expectations of rate cuts this year have also weighed on market sentiment.

On the technical front, the Nifty 50 formed a "Doji" candlestick formation on the weekly chart, indicating indecisiveness about the market's direction.

According to brokerage firm Axis Securities, the chart pattern suggests that if the Nifty 50 crosses and sustains above 23,700 level, it would witness buying, leading the index towards 23,800-24,000 levels. However, if the index breaks below the 23,300 level, it will witness selling pressure, taking it to 23,200-23,000.

For this week, Axis Securities expects Nifty 50 to trade between 24,000 and 23,000 with a mixed bias.

"The weekly strength indicator RSI (Relative Strength Index) is moving upwards and is quoting above its reference line, indicating a positive bias. However, the daily RSI turns flat, indicating lacklustre momentum in the short term," Axis Securities said.

Experts suggest betting on fundamentally and technically sound stocks at the current juncture. Based on the recommendations of several experts, here are 10 stocks that can rise 8-17 per cent in the next 3-4 weeks. Take a look:

Axis Securities

Kalyan Jewellers India | Previous close: ₹453 | Buying range: ₹435-426 | Target price: ₹492-510 | Stop loss: ₹400 | Upside potential: 13%

Kalyan Jewellers India has exhibited a breakout above a nine-month consolidation range of ₹440-340 levels on the weekly chart, signalling a positive bias.

The stock is trending in a higher high-low pattern on the weekly chart, indicating a medium-term uptrend.

It found support at the 20-week SMA (simple moving average) and bounced back, which will serve as short-term support moving forward.

The weekly RSI strength indicator has crossed above its reference line and broken through the falling channel, generating a buy signal.

Railtel Corporation of India | Previous close: ₹476 | Buying range: ₹465-455 | Target price: ₹535-550 | Stop loss: ₹423 | Upside potential: 16%

Railtel Corporation of India has demonstrated a breakout above the ₹465-340 consolidation zone on the weekly chart, indicating the continuation of the medium-term uptrend.

During the pattern formation, volume activity tended to decline, while at the breakout, there was an increase in activity, indicating heightened market participation.

The stock took support at the 38 per cent Fibonacci retracement level of a rally from ₹96 to ₹496, positioned at ₹337, confirming a medium-term support base.

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

Ramkrishna Forgings | Previous close: ₹899.10 | Buying range: ₹850-833 | Target price: ₹965-1,000 | Stop loss: ₹780 | Upside potential: 11%

Ramkrishna Forgings has demonstrated a breakout above nine months of consolidation between ₹815-600 levels on the weekly chart, indicating the continuation of the medium-term uptrend.

The volume of activity increased at the breakout, indicating an influx of market participation at the breakout level.

The stock closed above the weekly upper Bollinger band, generating a medium-term buy signal.

The weekly strength indicator RSI has broken above a downward-sloping trendline, hence generating a buy signal.

Elgi Equipments | Previous close: ₹736.30 | Buying range: ₹720-705 | Target price: ₹788-820 | Stop loss: ₹675 | Upside potential: 11%

Elgi Equipments displays a bullish trend on the weekly chart, characterised by higher highs and higher lows, supported by an upward-rising channel.

It took support at the lower band recently and is now heading towards the upper band.

The stock has broken out above a brief consolidation range of ₹710-580 levels on the weekly chart, indicating the continuation of the medium-term uptrend.

It is positioned above key short and medium-term moving averages of 20, 50, 100, and 200 days, indicating a positive bias.

The weekly strength indicator RSI has given a crossover above its reference line, indicating an uptrend.

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

PVR INOX | Previous close; ₹1,436.85 | Buying range: ₹1,415-1,440 | Target price: ₹1,575 | Stop loss: ₹1,350 | Upside potential: 10%

PVR INOX has recently exhibited two significant technical analysis signals that indicate a potential bullish shift.

Firstly, there is a bullish divergence on the weekly RSI near the 30 level.

This divergence suggests that while the stock's price was declining, the RSI was starting to increase, indicating a possible reversal in momentum.

Secondly, the stock has broken through a bearish trendline of weekly RSI that had been in place for approximately seven months.

This trend line breach is a critical signal, suggesting that the long-term bearish trend may be reversing to a bullish trend.

“Based on these technical indicators, investors and traders are advised to go long on PVRINOX, purchasing shares within the ₹1,415-1,440 price range,” Patel said.

"The stock is projected to have an upside target of ₹1,575 per share, highlighting a significant profit potential. To mitigate risk, it is recommended to place a stop loss near ₹1,350 per share on a daily closing basis, ensuring protection against potential adverse movements," said Patel.

Clean Science and Technology | Previous close: ₹1,452.60 | Buying range: ₹1,430 - 1,460 | Target price: ₹1,575 | Stop loss: ₹1,225 | Upside potential: 8%

Since March 2023, Clean Science has demonstrated remarkable stability by consistently maintaining its price range between ₹1,230 and ₹1,250.

Over this period, the stock has formed approximately five to six bottoms within this level, indicating strong support and resilience at these prices.

A significant technical signal appeared in the last trading week: a classic hammer candlestick pattern near the established support zone.

This pattern is often seen as a bullish reversal signal, suggesting potential upward movement.

Technical indicators support this bullish outlook.

Weekly RSI has begun to chart higher and lower highs, a pattern indicative of strengthening bullish sentiment.

Balaji Amines | Previous close: ₹2,398.60 | Buying range: ₹2,375-2,400 | Target price: ₹2,760 | Stop loss: ₹2,200 | Upside potential: 15%

Balaji Amines has recently exhibited two significant technical analysis signals that indicate a potential bullish shift.

Firstly, there is a bullish divergence on the weekly RSI near the 40 level.

This divergence suggests that while the stock's price was declining, the RSI was starting to increase, indicating a possible reversal in momentum.

Secondly, the stock has broken through a bearish trend line that had been in place for approximately 2.75 years.

This trendline breach is a critical signal, suggesting that the long-term bearish trend may be reversing to a bullish trend.

"Based on these technical indicators, investors and traders are advised to go long on Balaji Amines, purchasing shares within the price range of ₹2,375-2,400," said Patel.

"The stock is projected to have an upside target of ₹2,760 per share, highlighting a significant profit potential. To mitigate risk, it is recommended to place a stop loss near ₹2,200 per share on a daily closing basis, ensuring protection against potential adverse movements," Patel said.

Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher

Himatsingka Seide | Previous close: ₹140.08 | Target price: ₹164 | Stop loss: ₹127 | Upside potential: 17%

The stock has witnessed a decent erosion in the last five to six months and recently has maintained support near the ₹116 level, forming a double bottom pattern on the daily chart.

It has witnessed a pullback, currently indicating a bullish candle moving past the important 50EMA (exponential moving average) level at ₹134, and has improved the bias.

"With the RSI indicating a trend reversal to signal a buy, the chart looks appealing with much upside potential visible from the current rate. We suggest buying the stock for an upside target of ₹164, keeping the stop loss of ₹127," said Koothupalakkal.

Chalet Hotels | Previous close: ₹835.35 | Target price: ₹920 | Stop loss: ₹780 | Upside potential: 10%

The stock has indicated a higher bottom formation pattern on the daily chart, taking support near ₹796.

A positive candle pullback was witnessed moving after the 50EMA and 100-period moving averages at ₹810 and ₹816 levels, respectively, improving the bias.

'We can expect further upward movement in the coming days. The RSI has shown a trend reversal to signal a buy and is well placed with much upside potential visible. With the chart looking good, we suggest buying the stock for an upside target of ₹920, keeping the stop loss of ₹780," said Koothupalakkal.

Gujarat Mineral Development Corporation (GMDC) | Previous close: ₹399.20 | Target: ₹460 | Stop loss: ₹385 | Upside potential: 15%

The stock has witnessed a decent recovery from the bottom, making nearly ₹324.

It has moved past the 200-period moving average at ₹382 levels and the 50EMA level at the ₹397 zone, improving the bias.

Currently, with decent volume participation, it has indicated strength to continue the positive move further ahead.

"With the RSI on the rise and having much upside potential from the current rate, we anticipate further upward movement in the stock and suggest buying for an upside target of ₹460, keeping the stop loss of ₹385," Koothupalakkal said.

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