Top 10 Stock Ideas Suggested by Experts Amid Nifty 50's Rangebound Trade

Experts recommend top 10 stock ideas amidst Nifty 50's stagnant trading. Their suggestions aim to navigate the market's range-bound movement effectively. These picks leverage market conditions to potentially yield profitable outcomes, offering investors insight into promising stocks amidst the current trading environment.

On the lower side, 22,350-22,300 is the immediate key support for Nifty and as long as this holds, the chances of consolidation with positive is seen.

The market couldn't maintain its record high due to selling pressure, leading to a sharp decline on May 3. Consequently, the Nifty 50 only saw a modest 0.25 percent gain for the week ending May 3. Since April, the index struggled to surpass 22,800, indicating a significant barrier ahead. Experts suggest that breaching and sustaining above this level is crucial to access the upper range of the rising channel, around 22,950-23,000. On the downside, immediate support lies at 22,350-22,300, with 22,200 being the next critical level if this support is breached. Additionally, escalating volatility, evident in the India VIX rising 43 percent over the last seven sessions to 14.62, hints at an uneasy situation for bullish investors.

Throughout the week, the Nifty 50 saw a modest increase of 56 points, closing at 22,476. On the weekly charts, it displayed a Doji candlestick pattern, indicating indecision, yet maintaining the trend of higher highs and higher lows for another week. However, the daily charts showed the formation of a Bearish Engulfing candlestick pattern, signaling a potential bearish reversal.

Osho Krishan, senior analyst at Angel One, suggested that currently, the immediate swing low within the range of 22,350-22,300 is expected to act as a strong support level against any potential intra-week downturn. Additionally, he highlighted the significance of the 50-day Exponential Moving Average (DEMA) at 22,230 and the bullish gap around the 22,200 zone as further support levels.

According to him, the record-high range of 22,750-22,800 presents a formidable challenge for bullish investors. He believes that until there's a clear and decisive breakthrough in the market, achieving the next phase of the rally towards the 23,000 mark will be quite demanding.

Ashish Kyal, the Founder and CEO of Waves Strategy Advisors, believes that it won't be a straightforward task for the bulls to drive Nifty beyond the 22,800 mark in the near term. He indicates that immediate support lies around 22,350, and any decline below this level would signify a bearish trend.

Moneycontrol compiled a selection of top 10 stock recommendations from experts, focusing on a 3-4 week timeframe, with May 3 closing prices used for return calculations.

Expert: Amol Athawale, VP-Technical Research at Kotak Securities

Container Corporation of India: Buy | LTP: Rs 1,059 | Stop-Loss: Rs 1,020 | Target: Rs 1,140 | Return: 8 percent

After a strong upward movement, the stock is now exhibiting sideways trading, forming a Flag chart pattern on the daily scale. This pattern suggests a bullish continuation in the stock's chart structure, implying that a new upward trend is expected to commence from the current levels in the near future.

Jubilant Foodworks: Buy | LTP: Rs 463 | Stop-Loss: Rs 444 | Target: Rs 490 | Return: 6 percent

Following a decline from its peak levels, the stock experienced a rebound from its demand zone, initiating a steady recovery from lower levels. Moreover, on the weekly charts, the stock has broken out from a sloping channel formation. These upward movements indicate the potential for a new bullish trend to emerge from the current levels.

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BHEL: Buy | LTP: Rs 305 | Stop-Loss: Rs 292 | Target: Rs 330 | Return: 8 percent

The stock is exhibiting a rising channel chart pattern on both daily and weekly charts, characterized by a series of higher highs and higher lows. Furthermore, the ADX (average directional index) technical indicator suggests a potential for further upward momentum from current levels, enhancing the bullish outlook in the near term.

As long as the stock maintains trading above Rs 292, the formation of the uptrend is expected to persist. If it surpasses this level, there's potential for the stock to advance towards Rs 330.

Expert: Riyank Arora, Technical Analyst at Mehta Equities

JSW Steel: Buy | LTP: Rs 874 | Stop-Loss Rs 860 | Target: Rs 925 and Rs 950 | Return: 9 percent

On April 25, 2024, the stock experienced a breakout from an ascending triangle pattern on its daily charts. Currently, it's undergoing a pullback and re-testing its trendline support level, presenting a favorable risk-reward ratio at current levels.

With the RSI (relative strength index) at approximately 53.35 and ADX near 21.25, there's anticipation for the stock to gain momentum in the upcoming trading sessions. A prudent approach would be to set a strict stop-loss near the Rs 860 mark, targeting potential upside levels at Rs 925 and Rs 950.

Tata Consumer Products: Buy | LTP: Rs 1,094 | Stop-Loss: Rs 1,070 | Target: Rs 1,180 | Return: 8 percent

The stock is displaying a solid consolidation phase, oscillating between its anchor VWAP (volume-weighted average price) resistance level of Rs 1,120 and support level of Rs 1,075. Currently, with the RSI near 40.66 and ADX around 22.95, which has seen a slight increase from lower levels of 15, there's an expectation for momentum to strengthen, potentially leading to a breakout above the Rs 1,120 threshold.

Anticipated targets stand at Rs 1,180 and Rs 1,200, with a recommended stop-loss set at Rs 1,070 to manage risks effectively.

GMR Airports Infrastructure: Buy | LTP: 85.60 | Stop-Loss: Rs 83 | Target: Rs 95 | Return: 11 percent

The stock has recently reached its anchor VWAP support level of Rs 85 on its daily timeframe charts. With the RSI near 53.51 and ADX at 20.20, indicating robust momentum, there's potential for the stock to advance towards a target of Rs 95 and beyond.

To mitigate risks effectively, it's advisable to set a stop-loss at Rs 83 for all long positions. The stock exhibits a strong technical setup, with tight volatility contraction observed between AVWAP (anchored volume weighted average price), making it a promising candidate for trading opportunities.

Expert: Om Mehra, Technical Analyst at Samco Securities

Torrent Pharma: Buy | LTP: Rs 2,735 | Stop-Loss: Rs 2,600 | Target: Rs 2,950 | Return: 8 percent

Torrent Pharma has recently undergone a period of robust consolidation, leading to a notable breakout above the critical resistance level of Rs 2,700. Importantly, the stock is trading above both its short-term (20-day) and medium-term (50-day) moving averages.

The significant increase in trading volumes alongside the price surge suggests a continuation of bullish momentum. Additionally, the RSI holding above the 60 level further supports the notion of sustained upward movement.

Based on this technical analysis, it seems opportune to initiate a long position at the current market price (CMP) of Rs 2,735, targeting a price objective of Rs 2,950. To manage risk effectively, a stop-loss can be placed at Rs 2,600.

Thermax: Buy | LTP: Rs 4,767 | | Stop-Loss: Rs 4,590 | Target: Rs 5,100 | Return: 7 percent

Thermax is exhibiting a pattern of higher highs and higher lows, signaling a sustained uptrend. Moreover, it's trading comfortably above both its short-term (20-day) and medium-term (50-day) moving averages. The RSI, currently at 66 and steadily rising, adds further support to the bullish sentiment.

The fact that the stock is holding above the Rs 4,700 level, which previously acted as minor resistance, suggests renewed buying interest among short-term traders.

Given this technical setup, it appears favorable to initiate a long position at the current market price (CMP) of Rs 4,767, targeting a price objective of Rs 5,100. To manage risk, a stop-loss can be placed at Rs 4,590.

Expert: Nagaraj Shetti, Senior Technical Analyst at HDFC Securities

Welspun Corp: Buy | LTP: Rs 601 | Stop-Loss: Rs 555 | Target: Rs 660 | Return: 10 percent

The stock has rebounded notably following a downward correction in the previous week. Presently, it's making efforts to surpass the broader range movement around the Rs 590-600 levels. A sustained breakthrough above the Rs 600-610 levels is anticipated to catalyze significant upward momentum for the stock.

There's observed expansion in volume during the upward breakout, coupled with positive indications from the weekly 14-period RSI, suggesting the likelihood of further reinforcement in the stock's upward momentum.

Considering this technical analysis, initiating buying positions in Welspun Corp at the current market price (CMP) of Rs 601 seems reasonable. Additional purchases can be made on pullbacks to Rs 575. The upside target is set at Rs 660 within the next 3-5 weeks, with a stop-loss placed at Rs 555 to manage risks effectively.

UPL: Sell | LTP: Rs 494 | Stop-Loss: Rs 525 | Target: Rs 455 | Return: 8 percent

The stock has been entrenched in an intermediate downtrend for several months, characterized by a pattern of lower highs and lower lows evident on the weekly timeframe chart.

Despite a recent upward bounce in the stock price, it appears to have reached a peak and is poised to resume its decline, particularly around the Rs 510 levels where lower highs have formed. Both the daily and weekly RSI indicators are signaling negative sentiment, further reinforcing the bearish outlook for the stock in the upcoming weeks.

Given this analysis, selling UPL at the current market price (CMP) of Rs 494 is advisable. Additional selling can be considered on rallies up to Rs 510. The downside target is set at Rs 455 within the next 3-5 weeks, with a stop-loss placed at Rs 525 to manage potential risks.

Absolutely, it's always prudent to consult certified experts and conduct thorough research before making any investment decisions. The views and investment tips provided by experts on platforms like Moneycontrol.com are valuable insights, but individual circumstances and risk tolerances vary, so it's essential to consider them alongside personal financial goals and consult with professionals when needed.

Source: moneycontrol