Rajesh Palviya handpicks 4 stocks that could give 16-19% return in the next 1 month
Nifty started the week on a positive note but witnessed selling at higher levels to end the week on a weak note. The Nifty50 closed at 21622 on 19th January with a loss of 272 points on a weekly basis.
On the weekly chart, the index has formed a Bearish candle which engulfed its previous week's move, forming a «Bearish Engulfing» candlestick formation, indicating a bearish reversal.
For confirmation of this formation, a break and close below the previous week's low are necessary, which could signal a change in the trend to the downside.
The chart pattern suggests that if Nifty crosses and sustains above the 21700 level, it could witness buying, leading the index towards 21800-22000 levels.
We have picked up 4 stocks for the next 3-4 weeks. Returns have been calculated based on LTP of 19 January 2024:
The New India Assurance Company: Buy| LTP Rs 242| Target Rs 278-287| Upside 18%| Holding Period 3-4 weeks
On the weekly chart, NIACL breached the ‘Falling Channel’ at 230 level with a strong bullish candle, signaling the continuation of a medium-term uptrend.
The stock is maintaining its position above the 38% Fibonacci Retracement level of the rally from 123 to 262, establishing a medium-term support base of around 208.
Volume activity diminished during the pattern formation, and its resurgence at the breakout suggests an influx of participation.
The weekly strength indicator RSI given a crossover above its reference line generated a buy signal. The above analysis indicates an upside of 278-287.
Oil India Ltd: Buy| LTP Rs 412| Target Rs 474-490| Upside 18%| Holding Period 3-4 weeks
On the weekly chart, OIL broke above the «Bullish Pennants» formation at 382, indicating a continuation of the medium-term uptrend.
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