RBL Bank, HBL Power among 4 stocks that can analysts suggest for decent upside

Domestic equity market remained volatile on Friday amid the monthly expiry of derivative contracts. Benchmark indices erased all the early gains amid the absence of decisive global cues and traded with mild cuts in the early hours. The overall tone of the markets remains feeble and fragile as the US dollar is flexing its muscles and US treasury yield shoots higher.

The market is showing resilience but the undercurrent is weak. The dollar index at 106.59, the U.S. 10-year bond yield at 4.62 per cent and Brent crude above $97 are strong headwinds that can pull the market down. FIIs have sold shares for Rs 21,640 crore in September and are likely to sell more, said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"Investors have to be cautious at this stage. Profit booking in the mid-and small-cap stocks which have shot up on hope and aggressive buying would be a good strategy. There is safety in large-caps, particularly in segments like banking/financials, capital goods and autos.," he suggested.

Market participants suggest that stock specific action can help investors to make some money. According to the chart readers and technical analysts, select stocks namely, Motilal Oswal Financial Services, ITC, RBL Bank and HBL Power Systems can deliver decent returns in the near-term:

Motilal Oswal Financial Services | Buy | Target Price: Rs 920-960 | Stop Loss: Rs 880
Motilal Oswal found strong support at the descending trendline, accompanied by a notable increase in trading volumes. It has surpassed its previous week's high with a significant surge in trading volumes, confirming a bullish reversal. Key support is evident at the Rs 840 level, which is expected to act as a buffer for the bulls. The stock's potential upside targets are set at Rs 920 and Rs 960, indicating further room for growth.
Recommended by: Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

HBL Power Systems | Buy | Target Price: Rs 300 | Stop Loss: Rs 238
HBL Power, after the decent rally, has corrected to some extent to retrace 23.60% of the rise and has witnessed consolidation with improvement in the bias at current levels. The RSI has also flattened out after the slide and is well placed with much upside potential visible. With the chart looking good, we suggest to buy and accumulate this stock for an upside target of Rs 300 keeping a stop loss of Rs 238.
Recommended by: Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher

ITC | Buy | Target Price: Rs 465-470 | Stop Loss: Rs 440
A bullish engulfing candle formation on the daily chart of ITC, indicating a potential bullish reversal. Positive divergence is observed on the daily chart, confirming strength and a potential reversal. The stock has crossed above its 20-DMA on strong trading volumes and has exceeded the high of the previous two days. Key support is evident at the Rs 440 level, providing a solid foundation for potential upward movement. The stock's potential upside targets are set at Rs 465 and Rs 470, indicating scope for further price appreciation.
Recommended by: Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

RBL Bank | Buy | Target Price: Rs 255-260 | Stop Loss: Rs 239
RBL Bank has experienced a symmetrical triangle breakout on the daily chart, indicating a surge in optimism. The stock has maintained its position above a critical moving average. Furthermore, the stock's RSI is showing a bullish crossover. On the upper side, it has the potential to move towards Rs 260. On the lower side, support is situated at Rs 239.
Recommended by: Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

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