Stocks Tips for Short Term: The stock market is trading near its record high. Sensex is around 71500 while Nifty is trading around 21400. The market is at high valuation and some decline is possible from here. In such a situation, it would be wise for the investors to thoughtfully invest money only in stocks with strong fundamentals. In the recent rally of the market, there are many stocks which are now looking expensive in terms of valuation. At the same time, many shares are still undervalued or have managed to get out of the consolidation range after a long time. Brokerage house Axis Securities has also listed some such stocks (Stocks to Buy) In which breakout has been seen recently. These can give 10 to 14 percent returns in 3 to 4 weeks. These shares include SBI, Tata Steel, NOCIL and Asian Paints.
State Bank of India
CMP: Rs 648
Buy Range: Rs 645-633
Stop loss: Rs 618
Upside: 6%–10%
SBI has made a breakout of a strong multiple resistance zone around the level of 623. This breakout has happened with good volume, which is a sign of increasing participation. The stock has also successfully breakout of the Cup and Handle pattern, indicating an uptrend. Weekly strength indicator RSI is in bullish mode which is a positive sign. The share may show a level of Rs 680-700 in the next 3 to 4 weeks.
Tata Steel
CMP: Rs 136
Buy Range: Rs 135-132
Stop loss: Rs 129
Upside: 7% –12%
On the weekly chart, Tata Steel has made a breakout of the downward sloping trendline on the bullish candle at the level of 133. This breakout has happened with good volume, which is a sign of increasing participation. The stock is currently trending under an upward sloping channel formation and recently it (tata-steel) Support has been achieved at the lower band. And now it is moving towards the upper price band. Weekly strength indicator RSI is in bullish mode which is a positive sign. The share may show a level of Rs 143-150 in the next 3 to 4 weeks.
NOCIL
CMP: Rs 266
Buy Range: Rs 265-261
Stop loss: Rs 250
Upside: 10% –14%
NOCIL has made a breakout of the symmetrical triangle pattern around the level of 262. This breakout has happened with good volume, which is a sign of increasing participation. The stock has successfully closed above the upper weekly Bollinger band which is giving buying signals. The share is making higher high low on daily chart which is showing positive momentum in mid term. Weekly strength indicator RSI is in bullish mode which is a positive sign. The share may show a level of Rs 289-299 in the next 3 to 4 weeks.
Asian Paints
CMP: Rs 3313
Buy Range: Rs 3313-3247
Stop loss: Rs 3165
Upside: 7%–9%
On the daily chart, Asian Paints has made a breakout above the neckline of the inverted Head and Soldier pattern with a bullish candle around the level of 3297. This breakout has happened with good volume, which is a sign of increasing participation. The stock remains above its 20, 50, 100 and 200 day simple moving average, which is a positive sign. Weekly strength indicator RSI is in bullish mode which is a positive sign. The share may show a level of Rs 3500-3585 in the next 3 to 4 weeks.