Sensex plunges over 2,000 points in 4 days! 5 stocks that look attractive now

Even though the Indian equity market remains an outlier in the global market, headline indices have started to come under pressure in the last few days amid mounting worries about Fed’s hawkish stance and recession. In the last four trading sessions, Sensex has lost around 2,000 points and hit a day’s low at 57,038.24 before recouping some of the losses amid buying at lower levels.

Here are 5 stocks that technical analysts like amid the downturn:

Expert: Mehul Kothari – AVP – Technical Research, Anand Rathi Shares & Stock Brokers

JM Financial: Buy near Rs 73 | LTP Rs 75 | Target Rs 80 | Stop Loss Rs 69 | Upside 6%

We are witnessing a fresh range breakout in JM Financial and the price action is accompanied by rising volumes.

The stock has managed to close above its 200-day moving average. The daily RSI (14) has confirmed a range shift. Thus we advise traders to buy the stock on dips near 73 for an upside target of 80 in the coming week.

Nazara Technologies: Buy above Rs 765 | LTP Rs 732 | Target Rs 830 |Stop Loss Rs 730 | Upside 13%
On September 9, 2022, Nazara underwent a sharp breakout above the Rs 730 mark and that was along with heavy volumes. Then after we saw that the stock consolidated near its 200 DEMA.

At this juncture, the stock is on the verge of another breakout and the previous larger breakout too is intact. Thus we advise traders to buy the stock only above Rs 765 for an upside target of Rs 830 in the coming weeks.

Expert: Anand James, Chief Market Strategist at Geojit Financial Services

Hindustan Oil Exploration: Buy| LTP Rs 139| Target Rs 150-155| Stop Loss Rs 132| Upside 11%
After the minor consolidation seen in July and Aug, the stock had broken below the consolidation support early this month. Currently, it has formed an inside bar Doji in daily charts along with MACD forest showing bearish exhaustion hinting at an attempt to reverse.

We should probably be looking at the initial pattern formation, which is expected to lead to a reversal towards the Rs 150-155 region in the near term. All longs may be protected with a stop loss placed below Rs 132.

Affle India: Buy| LTP Rs 1,271 | Target Rs 1,360 | Stop Loss Rs 1,240 | Upside 7%
The stock has been moving within a trend channel since August and has recently bounced off the channel support of Rs 1,249 and is possibly moving towards the channel resistance of Rs 1,360.

The MACD Forest in the daily chart is hinting at bearish exhaustion which supports our expectation of a bounce back in the near term.

Chemcon Specialty Chemicals: Buy | LTP Rs 446 | Target Rs 500 | Stop Loss Rs 417 | Upside 12%
The reversal that started in June 2022 has been continuing. In the daily time frame, the stock has seen a Psar breakout along with MACD exhaustion which backs our expectation of an upside towards 500 levels in the short term.

Also in the monthly time frame, the stock has seen a Psar breakout confirming short-term positive outlook for the stock.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)