Stocks to buy: Paytm, Nazara, Bank of Maharashtra among stocks that may rise in near term

Domestic equity markets have turned volatile as the investors, across the globe, go risk-averse in the riskier asset class. However, analysts suggest that there will be stock-specific action at Dalal Street and select stocks may deliver double digits gains in the near-term. Analysts are brokerage firms including LPK Securities and Stoxbox have suggested some well-known stocks that may rally up to 16 per cent in the year term:

One97 Communications | Buy | Target Price: Rs 946-958 | Stop Loss: Rs 890
Paytm has experienced an upward movement following a period of consolidation on the daily chart, indicating an increase in optimism. Additionally, the stock is currently trading above a crucial moving average. The daily Relative Strength Index (RSI) shows a bullish crossover and is on the rise. Looking at the upper range, there is a resistance level at Rs 958, while on the lower end, a support level is established at Rs 890.
Recommended by: Kunal Shah, Senior Technical & Derivative analyst at LKP Securities

Nazara Technologies | Buy | Target Price: Rs 821 | Stop Loss: Rs 657
The pattern analysis on the weekly timeframe shows that the price action has entered into its stage 2 following a brief consolidation phase. The pattern analysis on the daily timeframe shows that the price action is trading in a potential volatility contraction pattern. This potentially indicates that the smart hands are using the dips at elevated levels as an opportunity to absorb available supply in the market. The 50-period volatility on the daily timeframe remains at lower levels and hence the chances of any unruly moves are less likely. The RSI across daily and higher time frames is trading well above its median without showing any divergence against the price. We reiterate a buy on Nazara Technologies for the target of Rs 821 and limit the risk to Rs 657
Recommended by: StoxBox

Bank of Maharashtra | Buy | Target Price: Rs 43-45 | Stop Loss: Rs 36
Bank of Maharashtra has exhibited a notable breakthrough, surpassing the previous swing high with substantial trading volumes. This suggests a sustained momentum in the current trend. The momentum indicator, RSI, is also playing a significant role, as it remains above the critical level of 70, affirming the bullish sentiment. In terms of support and potential gains, the stock has a solid foundation at the lower end, around 36. This level is likely to act as a cushion in case of any downward movement. Looking ahead, the stock has promising upside targets at Rs 43 and Rs 45, which could be achieved if the current bullish trend persists.
Recommended by: Kunal Shah, Senior Technical & Derivative analyst at LKP Securities

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

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