Stocks To Buy: Investors, who had been enjoying a bull run in the previous one and a half years, have been unnerved by corrections in the stock market during the last six to eight weeks, volatility, and broader fears about inflation.
While the economy has solidified its recovery, the RBI noted in its "State of the Economy" report released last month that there are still short-term challenges due to slowing growth, high inflation, supply disruptions brought on by geopolitical spillovers, and financial market volatility brought on by synchronized monetary tightening.
While the protracted Russia-Ukraine conflict has led to export restrictions by several nations and increased food costs, particularly for wheat, corn, and edible oils, crude oil prices continue to be high.
Not only is inflation a problem for India, but it has reached multi-decade highs across many economies.
The broad indexes may continue to be under pressure in the near term due to concerns about inflation, FPI outflows, and general domestic and international growth issues, according to top market experts. The increase in interest rates brought on by inflation is anticipated to increase the cost of capital, increase the need for working capital, and possibly put some pressure on company margins, which could have an effect on their profitability and stock prices over the next quarters.
Although the markets have slightly recovered during the past week, they are still well below 52-week highs. Several stocks in the process are currently trading at or very close to 52-week lows. Given this viewpoint, experts advise investors to exercise caution while taking short-term positions and to invest in high-quality stocks. It's a fantastic time to stock up on some of these reputable companies that are currently trading close to their 52-week lows.
Rajesh Palviya, VP - Technical and Derivative Research, Axis Securities, recommends the following high-quality equities, which are now trading near their 52-week lows.
During all periods, the stock is creating a string of higher highs and higher lows. The stock has shown a multi-month breakout on the weekly chart, pointing to near- to medium-term gain. The stock is trading above all significant moving averages, indicating a bias in favor of the upside.
On the daily chart, the stock has shown a breakout from consolidation at 480 levels. The stock has recovered from 430 levels on the weekly chart after creating a hammer formation, which suggests purchasing at lower levels. The stock is still trading above every significant moving average, indicating a positive bias.
The stock has recovered from significant Fibonacci levels of 50% retracement, suggesting that purchasing at a lower level is possible. The stock is producing a string of higher highs and higher lows on the weekly chart, which indicates a persistent uptrend. The stock is still trading above every significant moving average, indicating a positive bias.
On a daily timeline, the stock is producing a string of higher highs and higher lows. The stock has bounced from 16000 levels on the weekly chart, indicating that lower levels were a good time to buy. The price of the company is above the 20 and 50-day moving averages, indicating a bullish tilt.