Stocks to buy this week: Zomato, CAMS, REC, Bank of India among 12 technical picks; do you own any?

After experiencing healthy growth in November and December, the domestic market is now undergoing a phase of consolidation in January. This shift is attributed to diminishing prospects of an early rate cut by the US Federal Reserve and a waning sense of optimism regarding robust domestic macroeconomic indicators.

Equity benchmarks the Sensex and the Nifty 50 are in the red for January so far. "The year end rally which took the Nifty up by around 14 per cent from the 2023 October lows, is slowly running out of steam. The major challenge for the rally comes from the mother market US which is showing signs of weakness.

The concern in the US now is that the market expectation of a rate cut in March may not materialise since the labour market continues to be tight and the unemployment data is lower than expected," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, observed. "The exuberance of retail investors may be a positive factor which might push up the already frothy broader market.

But profit booking by DIIs (domestic institutional investors) and a seasonally weak January can impact the rally. Long term investors can use dips in the market to buy high quality banking stocks which are fairly priced," said Vijayakumar. As the near term outlook for the market is slightly hazy, experts recommend buying technically and fundamentally sound stocks at the current juncture.

Based on the recommendations of several experts, below are 12 stocks that one can consider buying for the next three to four weeks. Take a look: Axis Securities | Buying range: 703 689 | Target price: 768 800 | Stop loss: 660 In the last week of November 2023, Uno Minda demonstrated a robust breakout above the multiple resistance levels at 640 on the weekly chart, supported by a strong bullish candle, indicating a positive bias.

The stock rebounded to 695, experienced a throwback to the breakout zone, and subsequently rallied beyond the swing high of 695, signalling the continuation of the uptrend. It is followed by a rising channel formation since mid April 2023, suggesting a medium term uptrend. The weekly strength indicator RSI is in a bullish mode and holding above its reference line, indicating positive bias.

| Buying range: 133 130 | Target price: 150 155 | Stop loss: 122 On the weekly chart, Zomato breached the consolidation zone between 130 113 with a strong bullish candle, signalling the continuation of a medium term uptrend. The stock is currently trending within an upward channel formation and recently found support at the lower band, followed by a sharp rebound, indicating a positive momentum.

The stock is holding above key averages of 20, 50, 100, and 200 day simple moving averages (SMA), signalling a strong uptrend in the stock. The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal. | Buying range: 2,750 2,696 | Target price: 2,945 3,050 | Stop loss: 2,613 On the weekly chart, CAMS has broken out above the bullish flag pattern at the 2,700 level with a bullish candle, signalling the continuation of an uptrend.

The stock experienced a throwback to the breakout zone around 2,680, followed by a sharp rebound, confirming the breakout from the multiple resistance. The prior resistance zone around 2,680, established since the beginning of 2022, is expected to function as a support zone, aligning with the principle of change in polarity in technical analysis.

The weekly RSI is holding above the upward sloping trendline, confirming the strength of the uptrend in prices. Also Read: Gaurav Bissa, VP, InCred Equities | Target price: 200 | Stop loss: 165 KCP has been in a strong uptrend on the daily charts with formations of higher highs and higher lows. It has witnessed incremental volumes in the last few weeks which is a sign of accumulation.

The stock has recently witnessed a breakout from a bullish cup and handle pattern on the weekly charts which is a continuation pattern in nature and likely to push the stock beyond 200 level. RSI is trading above 70 on the weekly charts, which is expected to keep the momentum strong in the near term.

| Target price: 270 | Stop loss: 222 Nifty Media has witnessed a fresh breakout from a bullish ABC pattern on point and figure daily charts with a cluster target of 3,400. This is likely to give a push to many of the media stocks in the near term. TV Today Network is expected to benefit from the increased momentum in the index and may outperform its peers.

It has witnessed a fresh breakout from a falling channel pattern on the weekly charts along with strong volumes which can push the stock towards 300 level. RSI has witnessed a fresh breakout weekly along with a bullish MACD crossover which can result in the start of a fresh uptrend. | Target price: 135 | Stop loss: 108 The Nifty PSU Bank index has witnessed a 13 year breakout on the monthly charts and managed to sustain above the critical support levels.

This is likely to give a strong push to the stock prices of a few of its constituents. Bank of India has witnessed a breakout from the inverse head and shoulder pattern on the weekly charts which is a reversal pattern in nature. It bounced after a small consolidation during which it witnessed above average volumes, signalling strong accumulation.

It is sustaining above a 12 year falling trendline breakout which is likely to add legs to the rally and a sustained move above 110 can push it towards 140 levels. Also Read: Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher The stock has gained quite significantly in the last two months.

After a good consolidation, it once again indicated a breakout to breach above the resistance zone of 800 to enter fresh territory. The RSI has cooled off from the highly overbought zone, indicating a trend reversal. "It has the potential to scale new highs with next targets of 925 and 970. One can keep the stop loss near 790 below which the bias can turn a little weak," said Koothupalakkal.

| Target price: 2,600 | Stop loss: 2,130 The stock has witnessed a strong bull run in the last six to seven months and after peaking out near the 2,595 level, it witnessed a short correction to take support near 2,190. It indicated a pullback with improving bias to form a higher low formation pattern on the daily chart.

The RSI has cooled off significantly from the highly overbought zone and currently is well placed indicating a trend reversal to signal a buy. "The technical charts look good and one can expect further rise in the coming days for the next targets of 2,600 and 2,820 levels. The crucial support level of the significant 50EMA level is near 2,130," said Koothupalakkal.

| Target price: 475 | Stop loss: 395 The stock has been in a strong uptrend for the last seven to eight months with higher lows formation made at regular intervals. The stock, after hitting the high of 454 level, has corrected to some extent. A short span of consolidation has once again improved the bias.

A bullish candle and the formation of another higher low suggest a fresh round of momentum. The RSI has cooled off from the highly overbought zone recently and has again indicated a trend reversal. "We suggest buying the stock, keeping the stop loss of 407 and expecting the targets of 475 and 492 levels in the near future.

At the same time, a decisive breach below 395 may negate our view where the trend may turn weak and further slide can be expected," said Koothupalakkal. Also Read: Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers | Target price: 1015 | Stop loss: 832 For a month or so, this counter has gained massive momentum from the retracement levels of its previous up move (0.786 per cent), thus making it a lucrative buy.

Time and price retracement are falling at the same length, which is a strong indication of bottoming out. (Time retracement is 0.382 per cent and price retracement is 0.786 per cent). "On the indicator front, the weekly RSI has formed an impulsive structure near the 30 level which further confirms our bullish stance on the counter.

One can buy this stock in the zone of 875–910 for a target of 1,015 and a stop loss of 832 on a daily closing basis," said Patel. | Target price: 530 | Stop loss: 445 For the last two to three months, this counter has been making higher highs and higher lows, which is a sign of positive momentum in the counter.

Recently, on a daily scale, it formed a bullish bat structure which is looking attractive. Daily Stochastics has formed a bull divergence which further adds to the bullish stance on the counter. "One can buy this stock in the zone of 465–485 for a target of 530, and the stop loss should be 445 on a daily closing basis," said Patel.

| Target price: 625 | Stop loss: 530 HLE Glascoat has been consolidating for some time in the zone of 510–550. Recently, it took out its previous swing high of 543. The daily scale RSI has given bullish divergence which further adds to the bullish stance along with price action reversing from 0.886 per cent retracement.

"We advise traders to go long in the stock in the range of 555–570 with an upside target of 625 and a stop loss of 530 on a daily close basis," said Patel. Read all market related news Livemint tops charts as the fastest growing news website in the world to know more. Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.