Mirae Asset Sharekhan picks five stocks with up to 20% upside

Mirae Asset Sharekhan has identified five stocks with promising technical indicators, expected to yield up to 20% returns in the next three to four weeks. Among these picks are Bajaj Auto, Titan, and PB Fintech, each showcasing strong chart patterns. Bajaj Auto has emerged from a falling channel pattern on the daily chart, indicating a continued rally. Both the RSI and MACD, which are daily momentum indicators, show upward movement and a positive crossover. The stock is recommended for purchase in the ₹8,573 - ₹8,500 range, with an upper target of ₹9,800, suggesting a potential upside of 14%. The suggestion to buy is accompanied by the provision that the view will be negated if the stock dips to ₹8,100.

PB Fintech features the highest upside potential, with its charts displaying a bullish flag pattern breakout. Supported by an RSI at 61 and a positive MACD crossover, it is recommended for purchase in the ₹1,895 - ₹1,865 range, with targets up to ₹2,240, indicating a 20% potential gain. The view stands invalid if the stock falls to ₹1,700 levels.

Titan's daily chart shows a breakout from a descending triangle pattern, accompanied by a positive MACD crossover. This positions Titan as a favourable buy within a ₹3,510 - ₹3,470 range, with targets of up to ₹3,900, a potential 12% upside.

Bajaj Finserv is consolidating at its lower flag channel, with its RSI near "oversold" levels at 38, and the MACD turning positive. It's suggested for purchase between ₹2,010 - ₹1,990, with upper targets set at ₹2,340, implying an 18% upside, provided it does not fall to ₹1,890.

In the cosmetics sector, Nykaa is recommended between ₹218-₹215, trading above its 20-DMA with MACD in a positive crossover, implying a 15% upside with a target range up to ₹243. The view will be negated if Nykaa falls to ₹205.

Mirae Asset Sharekhan's analysis highlights key pattern breakouts and crossover signals as strong indicators of potential gains. These five stocks offer strategic entry points with set target ranges, making them attractive short-term investments. However, investors are advised to keep an eye on critical dip levels where the recommendations become void. The technical analysis also considers the broader market trends, offering insights into potential stock behaviour. Such evaluations offer investors a detailed guide to maximise returns based on current stock patterns and market conditions. This strategic approach aligns with market predictions, although actual performance may vary based on broader market dynamics.