Looking for the best stocks to buy? Indian stock market benchmark Nifty 50 has been extending its gains into the second consecutive session, with the index rising nearly 2% in morning trade on Monday, November 25. This follows a strong performance on Friday when the Nifty 50 surged 2.4%, closing at 23,907.25, effectively ending its two-week losing streak. Discover the top stocks to buy this week.
The recent positive momentum can be attributed to across-the-board buying driven by the announcement of the Maharashtra election results. As political uncertainty fades, investors are shifting their focus to the core fundamentals and key macroeconomic factors, such as the Q2 GDP data and global market trends. Find the top stocks to buy now!
Nifty’s Technical Outlook
On the technical front, Ajit Mishra, Senior Vice President of Research at Religare Broking, highlighted that the Nifty 50 index has reclaimed its 200-day exponential moving average (DEMA), signaling positive momentum. The index is approaching a key resistance level around the 20-day DEMA, near 24,020. A decisive move above this level could push the index from 24,350 to 24,550. On the downside, 23,500 is expected to act as a strong support zone, cushioning any dips.
Stock Recommendations: Expert Picks for Potential Gains
With the overall market showing strong signals, experts have recommended several stocks poised for a potential upside in the coming weeks. Based on insights from equity research professionals, eight stocks are expected to rise by 7-14% over the next three to four weeks.
Reliance Industries (₹1,265.40)
- Buying Range: ₹1,230 – ₹1,270
- Target Price: ₹1,374
- Stop Loss: ₹1,185
- Upside Potential: 9%
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi, notes that Reliance Industries has followed a classic Elliott Wave pattern, completing its fifth wave in July 2024 and entering a corrective phase. The stock is now nearing a strong support zone between ₹1,220 and ₹1,240, aligning with the Fibonacci retracement levels. Given these technical signals, Patel suggests entering the stock within the buying range of ₹1,230-₹1,270, with an upside target of ₹1,374.
Bajaj Finance (₹6,683.95)
- Buying Range: ₹6,650 – ₹6,700
- Target Price: ₹7,350
- Stop Loss: ₹6,300
- Upside Potential: 10%
Bajaj Finance has been consolidating within a range of ₹6,400 to ₹7,800, recently finding strong support near ₹6,400. The stock has shown signs of a reversal, breaking above the recent highs with good volume and bullish divergence. This setup indicates potential upward momentum, with a target of ₹7,350 and a stop loss at ₹6,300.
Havells India (₹1,665.80)
- Buying Range: ₹1,645 – ₹1,675
- Target Price: ₹1,825
- Stop Loss: ₹1,560
- Upside Potential: 10%
Havells India has been following a typical Elliott Wave structure and is currently in a corrective phase. The stock is nearing key Fibonacci support levels, between ₹1,630 and ₹1,650. This zone, combined with a bullish divergence, suggests the potential for a reversal. Traders are advised to buy in the ₹1,645-₹1,675 range, targeting ₹1,825 with a stop loss below ₹1,560.
Dabur India (₹513)
- Buying Range: ₹510 – ₹512
- Target Price: ₹560
- Stop Loss: ₹478
- Upside Potential: 9%
Dabur India is showing signs of a potential rebound as it approaches a key support zone around ₹500-490, where historical demand levels have been observed. The price action suggests reduced bearish momentum, indicating a potential consolidation and rebound. Patel suggests buying the stock in the ₹510-₹512 range with a target of ₹560 and a stop loss at ₹478.
Grasim Industries (₹2,598.65)
- Buying Range: ₹2,580 – ₹2,600
- Target Price: ₹2,750 – ₹2,800
- Stop Loss: ₹2,450
- Upside Potential: 8%
Grasim Industries is trading within a falling wedge pattern and recently bounced off the 200-day EMA, indicating strong support. If the price continues to hold above the descending trendline, it could trigger a rally toward the upper end of the pattern. The target range is ₹2,750 to ₹2,800, with a stop loss at ₹2,450.
Bharti Airtel (₹1,569.30)
- Buying Range: ₹1,560 – ₹1,565
- Target Price: ₹1,665 – ₹1,684
- Stop Loss: ₹1,490
- Upside Potential: 7%
Bharti Airtel recently showed strong resilience, returning from a crucial support level near ₹1,500. The stock has exhibited bullish price action, supported by an upward-trending 200-day EMA. A sustained move above ₹1,540 could trigger further upside toward the ₹1,665-₹1,684 range.
LTIMindtree (₹6,133.70)
- Buying Price: ₹6,133.70
- Target Price: ₹6,700 – ₹6,800
- Stop Loss: ₹5,800
- Upside Potential: 11%
LTIMindtree recently broke out after consolidation, forming a strong bullish candle. With good trading volume and technical strength, the stock is poised for continued upward momentum. The target range is ₹6,700 to ₹6,800, with a stop loss at ₹5,800.
Oil India (₹507.15)
- Buying Price: ₹507.15
- Target Price: ₹570 – ₹580
- Stop Loss: ₹475
- Upside Potential: 14%
Oil India has formed a classic double-bottom pattern, indicating a potential reversal. This bullish pattern is reinforced by increased trading volume, suggesting strong buying interest. A decisive close above ₹510 could trigger further gains, with targets of ₹570 and ₹580. Immediate support is at ₹490, offering an attractive buying opportunity on dips.
Conclusion: A Cautious Approach to Stock Selection
Our expert recommendations for the top stocks to buy include Reliance, Dabur, and Grasim. While the Indian stock market shows signs of recovery, experts advise a cautious approach to stock selection. The technical indicators for the above stocks suggest potential for upward movement in the next few weeks, with expected gains ranging from 7% to 14%. However, investors should consult certified financial advisors before making investment decisions to ensure they align with their risk tolerance and financial goals.