Sensex, Nifty recover from days lows even as muted cues weigh on markets! These 4 stocks could give 5-9% return in next 3-4 weeks

Tracking weak global cues Indian market started on a weak note on Monday. Bears took control and pushed benchmark indices towards crucial support levels.

The S&P BSE Sensex fell more than 650 points in intraday trade to breach its crucial support placed at 58000 while the Nifty50 took support near 17000. However, the markets recovered from day's lows with sensex salvaging over 500 points while the 50-share Nifty50 index gaining close 150 points. At 11:15 am, Sensex was trading at 57,739.76, down 93 points or 0.16 per cent. Meanwhile, Nifty50 was trading at 17,230.55, down 0.26 per cent.

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Asian markets fell while crude oil prices surged amid warnings Russia was set to invade Ukraine, risking sanctions that could trigger a further spike in energy costs and stoke global inflation, said a Reuters report.

“There are strong headwinds for the market arising from Ukraine tensions and monetary tightening by the Fed expected from March onwards,” Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

“Adding to these headwinds there are concerns specific to India like sustained FII selling and rising crude. Brent crude at around $ 94 a barrel can aggravate inflation in India and depreciating rupee may further prompt FIIs to sell. Retail investor optimism and cash-rich DIIs are positives,” he said.

Foreign portfolio investors (FPIs) have withdrawn a net Rs 18,856 crore from the Indian markets in February so far amid geopolitical tensions and chances of a rate hike by the US Federal Reserve. This is the fifth consecutive month of foreign fund outflows, PTI reported.  

We have collated a list of 4 trading ideas by experts for the next 3-4 weeks:

Expert: Rajesh Palviya Jain, VP Research (Head Technical & Derivatives) at Axis Securities Ltd

HDFC Ltd: Buy| LTP: Rs 2440| Target Rs 2575| Stop Loss Rs 2330| Upside 5%

The stock has witnessed a strong rebound from its one-year “multiple support” zone of 2370 levels which remains a crucial support zone.

The weekly price action has formed a “hammer” candlestick pattern which is a short-term trend reversal pattern. Hence, any follow-up close above 2451 levels will confirm the pattern.

Rising volumes over the past couple of weeks signal increased participation. The daily strength indicator RSI is in bullish mode along with positive crossover which supports rising strength in the near term.

The above analysis indicates an upside of 2500-2575 levels. The holding period is 3 to 4 weeks.

Hero MotoCorp Limited: Buy| LTP Rs 2716| Target Rs 2960| Stop Loss Rs 2630| Upside 9%

In the past couple of months, the stock has witnessed strong buying momentum from lower levels. With the current close, the stock has formed an “inverse head and shoulder” pattern with a neckline of 2800 levels.

The past couple of weeks rising volumes implies increased participation. The stock is sustaining above its 20, 50, and 100 as well 200 Day SMA which reconfirms bullish sentiments ahead.

The daily, weekly and monthly strength indicator RSI is in bullish mode along with positive crossover which supports rising strength. The above analysis indicates an upside of 2880-2960 levels.

Brokerage Firm: SMC Global Securities Ltd

Bajaj Auto: Buy| LTP Rs 3635| Target Rs 3890| Stop Loss Rs 3420| Upside 7%

Bajaj Auto made a 52-week low at Rs 3027.05 on 20th December 2021 and a 52-week high of Rs. 4347.00 on 01st June 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 3556.42.

The stock has witnessed a healthy correction from a high of 4000 levels and tested 3100 levels in a single downswing within a short span of time. Then after, it consolidated in a narrow range for 3 weeks and gave the breakout of same and trading higher.

Apart from this, the stock has formed an “Inverse Head and Shoulder” pattern on daily charts, which is considered to be bullish.

Last week, the stock has given the pattern breakout along with high volumes and also closed near week high. So, follow-up buying may continue for the coming days.

Therefore, one can buy in the range of 3600-3610 levels for the upside target of 3850-3890 levels with a stop loss below 3420 levels.

Siemens: Buy| LTP RS 2457| Target Rs 2630| Stop Loss Rs 2330| Upside 7%

Siemens made a 52-week low of Rs 1717.80 on 12th April, 2021, and a 52-week high of Rs. 2576.85 on 13th December, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 2166.80

Short-term, medium-term, and long-term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts.

Apart from this, the stock is forming a “Continuation Triangle” pattern on weekly charts which is bullish in nature.

Past week, the stock tried to give the breakout of the pattern but could not hold the due to high volatility across the board, managed to close with positive bias along with high volumes so further buying is anticipated from the stock from current levels.

Therefore, one can buy in the range of 2420-2430 levels for the upside target of 2580-2630 levels with a stop loss below 2330 levels.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)