Vedanta, BPCL and Apollo Tyres likely to deliver strong returns in 2-4 weeks

Three stocks namely Vedanta, BPCL and Apollo Tyres look strong on technical charts. If one goes by what technical analysts said these three stocks can deliver healthy returns over the next couple of weeks. Vedanta is seen hitting Rs 333 level soon.

Vedanta | Buy price Rs 315-318 | Stop loss Rs 306 | Target Rs 333

Vedanta has corrected from a high of Rs 441 touched in April 2022. The stock found support at the Rs 206 level in July 2022, which also roughly coincided with the 50-month SMA.

The stock has since then bounced back and made higher tops and higher bottoms over the last several weeks. This week, the stock has broken out of a narrow range, indicating it is set to continue its uptrend. Weekly momentum readings like the 14-week RSI are in rising mode and not overbought suggesting scope for more upsides in the coming weeks.

With the intermediate technical setup too looking positive, the stock has the potential to move higher in the coming weeks. Buy the stock between Rs 315 and 318 levels. The current market price is Rs 316.90. Place a stop loss at Rs 306 for the target of Rs 333.

(Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities)

BPCL| Buy price Rs 317 | Target Rs 339 | Stop Loss Rs 316 (2-3 weeks)

The stock price has broken out from a downward-sloping trend line as it moved above the Rs 317 level. Additionally, the stock price has moved above the 100-day MA, adding further bullishness to the stock. The price move has been accompanied by an increase in volumes which are higher than the 20-day average, confirming the participation of volumes in the price move. Relative Strength Index (RSI) is heading towards the overbought zone; this shows the internal strength of the up move staying intact. Thus, current levels are attractive to buy with a favourable risk-reward ratio.

(Foram Chheda, CMT, Technical Research Analyst and founder at chartanalytics.co.in).

Apollo Tyres | Buy price Rs 291-295 | Target Rs 310 | Stop loss Rs 283

Apollo Tyres recently found support around the Rs 270 level in November, which also roughly coincided with the previous intermediate low for the stock. The stock has subsequently risen and made higher bottoms in the last few sessions. In the process, the stock has broken out of a tight range on the back of above average volumes. Momentum readings like the 14-day RSI are in a rising mode and not overbought, which is encouraging.

With the intermediate technical setup too looking positive, the stock has the potential to move higher in the coming weeks. Buy the stock between Rs 291 and 295 level. The current market price is Rs 292.75. Place a stop loss is at Rs 283 for the target of Rs 310.

(Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities)

Also Read: SGX Nifty drops 60 pts: Asian markets; oil prices, Dharmaj Crop Guard IPO & more

Also Read: Stocks in news: Bajaj Finance, Nykaa, Paytm, Coal India and more