7 stocks to buy for up to 39% returns in the next few weeks

The weekly timeframe chart indicates that Nesco Ltd has witnessed a sharp upside bounce in the last two weeks. We observed an upside breakout of a triangle type pattern at Rs 580 in the last week and the stock is now trading higher. This could be considered as an important upside breakout of the crucial pattern and one may expect further expansion of upside momentum in the near term. Weekly 14-period RSI and volumes are supporting a further upside in the stock going ahead. Buying can be initiated in Nesco at CMP (Rs 610.90), add more on dips down to Rs 587, wait for the target of Rs 675 in the next 3-4 weeks. Place a stop loss at Rs 572.

(Analyst: Nagaraj Shetti, Technical and Derivative Analyst, HDFC Securities)

After showing a range bound action with a positive bias in the last few sessions, the stock witnessed a sharp upside breakout on Monday and is now showing intraday consolidation at the highs in the daily timeframe chart. The recent up move in Kaveri Seed could be considered as an upside breakout of the larger consolidation pattern as per the weekly timeframe chart at Rs 545-550 and the stock is trading above it. Volumes expanded during the recent up move. Daily 14-period RSI has moved above the crucial upper levels of Rs 60, which signals the possibility of further strengthening of the upside momentum. One may look to buy KSCL at CMP (Rs 550.15), add more on dips down to Rs 528 and wait for the upside target of Rs 610 in the next 3-4 weeks. Place a stop loss at Rs 512.

(Analyst: Nagaraj Shetti, Technical and Derivative Analyst, HDFC Securities)

An analysis of the weekly time frame charts in Indian Oil Corporation (IOC) stock shows a range-bound action between Rs 98 and Rs 73 since March 2020. This range-bound action shows a classic double bottom pattern. A falling trendline from the high of August 2017 pulled downwards is also broken, giving us confirmed signals of a change in trend. On the daily time frame chart, we see a golden cross, 50-day moving averages crossing above 200-DMA on Dec 24 2020. This is also a major buy signal and is likely to push prices higher. Prices action shows characteristics of an impulsive action with volumes picking up on rallies. A strong green candle closing above the resistance zone at Rs 98-95 suggests build up of buying interest in the stock. IOC has the potential to rally towards Rs 120 and above that to Rs 135, says the analyst. Hold the stock for 6-8 weeks and keep a stop loss at Rs 85.

(Analyst: Manish Shah, Trader, Researcher, Trading Coach)

Sun TV has seen a reversal of sorts with prices rallying from Rs 417-520 in the last couple of weeks. On the weekly time frame chart, price action between February-December 2020 shows the massive formation of a bullish inverse and shoulder pattern. A trendline from the highs of Jan 2018 also shows a change in trend from down to up. A breakout from the pattern happened on Jan 8th, giving a rise to major upsides in the weeks to come. Price action since July 2020 shows a pattern of rising tops and rising bottoms. A confirmed sign of a bullish trend is underway. Sun TV is a good stock to own, according to the analyst who has a target of Rs 645-715 on the counter. He suggests keeping a stop loss at Rs 475. Hold this stock for 6-8 weeks.

(Analyst: Manish Shah, Trader, Researcher, Trading Coach)

Deepak Fertilisers is trading above its 200-EMA, which indicates a positive outlook on the stock. It has bounced from the support of an uptrend moving trend line. The analyst expects a target of Rs 195 from a medium-term perspective. He recommends a buy with a stop loss at Rs 134.

(Analyst: Ashis Biswas, head of Technical Research at CapitalVia Global Research)

UPL is currently moving in an uptrend channel and has given a breakout to a cup and handle formation. The stock has been trading above its 200-DMA since December, indicating a positive outlook on the stock. The analyst recommends a buy on this scrip with a target of Rs 585 and a stop loss at Rs 430 for a medium-term perspective.

(Analyst: Ashis Biswas, head of Technical Research at CapitalVia Global Research)

VIP Industries is trading in an upward trending channel. It crossed its 200-DMA in November, and since then, it has been trading above it, which indicates a positive outlook on the stock. The analyst recommends a buy on VIP Industries with a target of Rs 430 and a stop loss at Rs 340 for the short-term.

(Analyst: Ashis Biswas, head of Technical Research at CapitalVia Global Research)