Experts invested in these ten companies because they may beat the market and provide strong profits

Experts invested in these ten companies because they may beat the market and provide strong profits

Analysts predict that 22,300 will be a significant barrier to any gains in the Nifty 50, as a close above it might push the index closer to 22,500.

The market saw a 1.65% correction in the week ending April 19, but a robust rebound in the last session of the week helped to minimize losses and restored some confidence to Dalal Street. On the daily charts, bullish piercing line and double bottom patterns formed, suggesting a favorable bias for the next sessions. However, volatility may occur since April derivative contracts expire this week.

Because of this, analysts indicated that 22,300 is likely to be a key barrier to additional upside in the Nifty 50, as a close above it may push the index towards 22,500. On the other hand, 22,000 is likely to be an instant support level for the index, as breaching it could lead to levels of 21,800–21,700 once again.

The Nifty 50 dropped 372 points to 22,147 in the week that concluded on April 19. On the weekly charts, this resulted in the formation of a bullish candlestick pattern with a lengthy lower shadow.

Although it would be premature to declare that we have totally emerged from the woods, prudence is necessary. In terms of levels, the 21,800–21,700 subzone has solid support, while the psychological mark of 22,000 withholds the intermediate support, according to Osho Krishan, senior analyst for technical and derivative research at Angel One.

On the plus side, he believes that the 20 DEMA (day exponential moving average), which is now around 22,300, together with the bearish gap between 22,430 and 22,500, will likely operate as a formidable challenge in the near future. Only a decisive victory would be able to regain the lost ground to the Dalal Street bulls.

The short-term trend is still poor, but given that it is close to the cluster support around the 22,000 level, senior technical research analyst at HDFC Securities Nagaraj Shetti says that a comeback to the upside from the lows is possible in the next sessions.

According to Osho, it is best to refrain from placing large overnight wagers and to wait patiently for the uncertainty to subside.

Moneycontrol compiled a list of the top 10 stock ideas from analysts who looked forward three to four weeks. The computation of the stock price return takes into account the closing price on April 19.

Expert: Senior technical/derivative analyst at HDFC Securities Subash Gangadharan

Shipbuilders Mazagon Dock: Purchase | LTP: Rs 2,189 | Stop-Loss: Rs 1,950 | Goal: Rs 2,500 | Return: 14%

It seems that the current decline has stopped. The stock has recovered from its low of Rs 1,795, which is near to both the 50-week SMA (simple moving average) and its prior intermediate lows. Over the last two weeks, the stock has been stabilizing above the 20- and 50-day SMAs.

We think it will eventually begin to go higher given the favorable technical setup. Investing might start at CMP (Rs 2189) and continue down to Rs 2,125, when prices decline. The upside objective for the next three to five weeks is Rs 2,500. Put down a Rs. 1,950 stop-loss order.

Titagarh Rail Systems: Invest in | Target: Rs 1,150 | Stop-Loss: Rs 850 | LTP: Rs 972 | Return: 18%

Titagarh has steadily recovered over the last several weeks after a recent steep decline in the stock that saw it hit a low of Rs 780 and close to the 50-week SMA. In the process, the stock has broken out from its previous swing high of Rs 980.

The 14-week relative strength index (RSI), which measures momentum, has also recovered significantly from oversold levels.

One may consider buying Titagarh at CMP (Rs 972), adding more on falls down to Rs 940, and waiting for the upside goal of Rs 1,150 in the next three to five weeks, given the positive intermediate technical setup. Set a Rs 850 stop-loss.

ITD Cementation: Purchase; Stop-Loss: Rs. 320; Target: Rs. 420; LTP: Rs. 362; 16 percent return

The stock formed a double bottom pattern at Rs 260 levels, and it is now in a strong short-term rally. Healthy volumes last week helped the stock break out of its current trading range, which is encouraging for the rise to continue.

Given that the stock is trading above the 20-day Simple Moving Average (SMA) and that momentum indicators, such as the 14-day RSI, are rising and have passed their prior highs, technical indicators are indicating that momentum is increasing.

Investing may start at CMP (Rs 362) and continue to buy more until prices decline below Rs 345. The upside objective for the next three to five weeks is Rs 420. Set a Rs 320 stop-loss.

Expert: Kotak Securities Vice President of Technical Research Amol Athawale

SAIL: Purchase | Stop-Loss: Rs 140 | Target: Rs 156 | LTP: Rs 146 | Return: 7%

Following the notable upward trend of the previous several weeks, the highest levels of the Steel Authority of India counter saw a brief pullback. On the other hand, closing above the significant daily scale retracement zone indicates bullish continuation chart formation.

As a result, it is anticipated that the counter will soon start moving upward from its present levels.

ICICI Bank: Purchase | Stop-Loss: Rs. 1,030 | Target: Rs. 1,150 | LTP: Rs. 1,067 | Return: 8%

The counter's latest selloff from higher levels has halted the negative trend. On the daily charts, the Bullish Piercing Line candlestick pattern and the counter have both found support and reversed their trend from their significant support zone. From the present levels, the formation points to continued bullish action.

Bharat Electronics: Purchase | Stop-Loss: Rs. 223 | Target: Rs. 250 | LTP: Rs. 233 | Return: 7%

The counter is in a rising channel chart formation with a higher high and higher low series pattern on the weekly charts. Technical indicators such as the average directional index (ADX) and relative strength index (RSI) are also suggesting an upward trend from present levels, which may strengthen the bullish momentum in the near future.