Market Overview
The Nifty 50 index, a key benchmark of the Indian stock market, rose by 1.2% for the week ending Friday, August 23, marking its second consecutive week of gains. This positive trend is buoyed by favorable global economic signals. Recent U.S. macroeconomic data have alleviated recession concerns, and expectations for a rate cut by the U.S. Federal Reserve have strengthened. In his speech at the Fed’s annual conference in Jackson Hole, Wyoming, Fed Chair Jerome Powell indicated the central bank is prepared to adjust its monetary policy but did not specify the scale or timing of potential rate cuts.
Experts anticipate a 25 basis points rate cut in September, which is expected to benefit the market. While the Indian stock market shows potential for medium- to long-term gains due to robust economic growth and strong domestic demand, current high valuations may limit short-term upside.
For investors looking to capitalize on short-term opportunities, experts recommend focusing on stocks with favorable technical indicators. Here are 12 stocks identified as having the potential to rise by 6-25% over the next 2-3 weeks:
Stock Recommendations
Borosil Renewables
Previous Close: ₹513.55
Buying Range: ₹510-515
Target Price: ₹585
Stop Loss: ₹475
Upside Potential: 14%
Borosil Renewables has recently faced a notable decline from ₹573, dropping about 15%. The stock has found support in the ₹490-500 range, which coincides with its 200-day simple moving average (SMA), a critical technical support level. The Relative Strength Index (RSI) on the hourly chart shows a bullish divergence at this support, suggesting a potential reversal. This makes the current buying range of ₹510-515 attractive, with an upside target of ₹585 and a recommended stop loss at ₹475.
Laxmi Organic Industries
Previous Close: ₹280.10
Buying Range: ₹278-282
Target Price: ₹330
Stop Loss: ₹255
Upside Potential: 18%
Laxmi Organic has been consolidating within a range of ₹235-270 for the past seven to eight weeks. Recently, it broke out of this range and is now near ₹280, indicating a potential trend shift. This breakout has breached a long-standing bearish trendline, and increasing trading volume supports this move. The RSI has remained above 50, suggesting ongoing positive momentum. The stock is recommended for purchase within ₹278-282, with a target price of ₹330 and a stop loss at ₹255.
Birlasoft
Previous Close: ₹601.25
Buying Range: ₹600-610
Target Price: ₹666
Stop Loss: ₹575
Upside Potential: 11%
Birlasoft recently corrected from ₹640 to ₹590, which aligns with a previous breakout level and a bearish trendline. This ₹590 level acts as a crucial support zone. The RSI has reversed from the 40 level, signaling a potential bullish reversal. The stock is recommended for purchase between ₹600-610, with a target price of ₹666 and a stop loss at ₹575.
Conclusion
These recommendations are based on technical analysis and current market conditions. Investors are advised to consider these stocks for potential short-term gains while remaining aware of broader market trends and valuation concerns.
Related topics: