Stocks to buy: SBI Card, CDSL, Jindal Saw among 8 stocks that can rise 5-31% in next 3-4 weeks, say analysts

Stocks to buy: Indian stock market benchmarks the Nifty 50 and the Sensex cracked over 1 per cent each in intraday trade on Monday, April 15, as concerns over escalating Israel-Iran tensions spooked investors.

According to Anand James, Chief Market Strategist at Geojit Financial Services, Nifty's weakness may be arrested before 22,360 is breached, followed by an upswing attempt, which however, may not see past 22,600.

"This scenario sees declines dominating, aiming at 22,110, but with hopes alive for a return to uptrend. However, the inability to close above 22,200 after volatility or a direct fall below 21,800 could confirm a break of the bullish structure that had 23,200 on the horizon, and line up 20,300 instead, as the first objective for the bear move," said James.

Also Read: 5 biggest concerns around Iran-Israel tensions that could impact Indian stock market

Experts are of the view that the market may remain volatile in the short term and one should focus on buying only quality stocks at this juncture

Based on the recommendations of several experts, below are eight stocks that one can consider buying for the next three to four weeks. Take a look:

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

Navin Fluorine International | Previous close: ₹3,296.65 | Target price: ₹3,600 | Stop loss: ₹3,075 | Upside potential: 9%

Following its double top formation near the ₹4,900-4,800 zone, Navin Fluorine International has experienced a significant downturn, shedding nearly 2,000 points, equivalent to a substantial 41 per cent decrease in price. 

However, in the last five to six trading sessions, it has found support near the ₹3,000 mark. Concurrently, a bullish crab pattern has materialized on the stock's daily chart, signalling a potential reversal in trend. 

Moreover, "regular bull divergence" has been identified on the Relative Strength Index (RSI) daily scale, indicating strengthening bullish momentum. 

"Based on these technical indicators, investors may consider initiating long positions within the range of ₹3,200-3,300. The upside target for this trade is set at ₹3,600. To manage risk, a stop loss order should be placed near ₹3,075 to limit potential losses in case the trade doesn't perform as expected," said Patel.

Also Read: Stocks to buy: V-Guard, eClerx Services, Dhanuka Agritech, among five fundamental stock picks by HDFC Securities

AU Small Finance Bank | Previous close: ₹638.75 | Target price: ₹725 | Stop loss: ₹585 | Upside potential: 14%

AU Small Finance Bank reached around ₹813 on January 08, 2024, but then experienced a decline of approximately 259 points (about 32 per cent). 

However, in the past two weeks, the stock has shown a significant recovery and is currently trading near the ₹620 mark, indicating a bullish sentiment. 

On the indicator side, the weekly scale RSI indicator has identified a “hidden bull divergence” close to its previous low point recorded on March 20, 2023. This divergence suggests the possibility of upward momentum and indicates a potential bullish sentiment. 

"Investors may consider adding long positions in the range of ₹620-640, with an upside target set at ₹725. It's recommended to set a stop loss near ₹585 on a daily closing basis to manage risk," Patel said.

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SBI Cards and Payment Services | Previous close: ₹737.65 | Target price: ₹840 | Stop loss: ₹665 | Upside potential: 14%

Following a peak near the ₹933 level, the SBI Card underwent a significant downturn, experiencing a sharp decline of nearly 260 points, which translated to a substantial decrease of approximately 27 per cent in its overall value. 

However, over the week, it managed to stabilise around the ₹675 level, forming a sustained support base. 

Notably, during this period, a bullish alternate pattern has emerged near the ₹680-710 level, providing further confirmation of positive market sentiment. 

Additionally, analysis of the daily RSI indicator reveals a bear trend-line violation, indicating a favourable outlook for the stock. 

"Considering these factors alongside chart patterns, investors may find it prudent to consider initiating buy positions within the range of ₹710-740, with an upside objective targeted at ₹840. To manage risk, a stop loss order should be set at ₹665 on a daily closing basis, protecting potential downside movements," said Patel.

Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher

Meghmani Organics | Previous close: ₹88.85 | Target price: ₹100 | Stop loss: ₹83 | Upside potential: 13%

The stock after taking support near the long-term rising trendline zone of ₹78.50 witnessed a decent pullback to move past the confluence of the 200-period MA (moving average) and 100-period MA at ₹83, improving the bias. 

A further breach above the significant 50EMA (exponential moving average) level of ₹85 has further strengthened the trend to indicate for further rise in the coming days. 

"With the RSI well-placed and on the rise to show strength and has the potential to carry on with the positive move further ahead. With the chart looking good, we suggest buying and accumulating the stock for an upside target of ₹100 keeping the stop loss at ₹83," said Koothupalakkal.

CDSL | LTP: ₹2,008.10 | Target price: ₹2,220 | Stop loss: ₹1,870 | Upside potential: 11%

The stock has witnessed a decent pullback from the bottom near ₹1,625 and has improved the bias moving past the confluence of moving averages of 50EMA and 100-period levels at ₹1,826 and ₹1,842 respectively with a decent breakout above the consolidation zone at ₹1,930 level to indicate a further rise. 

The RSI is on the rise and has gained strength with much upside potential visible with the positive move expected further ahead.

Jindal Saw | Previous close: ₹512.55 | Target price: ₹575 | Stop loss: ₹484 | Upside potential: 12%

The stock has recovered strongly from the bottom near the important 200 period MA of ₹395 level. It witnessed a decent pullback moving past the 50EMA and 100 period MA at ₹470 level improving the bias. 

Currently, a short consolidation has produced a bullish candle formation on the daily chart to trigger a buy signal with the RSI also supporting our view which is well placed and is on the rise.

Also Read: Vijay Kedia portfolio: Multibagger stock Global Vectra hits lifetime high despite stock market crash today

Riyank Arora, Technical Analyst, Mehta Equities

Protean eGov Technologies | Previous close: ₹1,260.25 | Target price: ₹1,650 | Stop loss: ₹1115 | Upside potential: 31%

The stock has given a good breakout above its Anchor VWAP resistance mark of ₹1,195 and successfully managed to close above the same. With the RSI (14) on daily charts at 68.16, the overall momentum looks strong, and the stock is poised for an upside towards ₹1,650 and above. A strict stop loss should be kept at the ₹1,115 mark to manage risk well.

IRCTC | Previous close: ₹1,057.65 | Target price: ₹1,115 | Stop loss: ₹1,025 | Upside potential: 5%

The stock has given a strong breakout above its resistance mark of ₹1,049 on its daily charts. With the RSI (14) on daily charts near 73.50, the overall momentum looks strong. Volumes in Friday's session were nearly five times its average (30) days traded volume.

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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.