Top 9 Stocks to Buy Now: Tata Motors, L&T, and More Set for Double-Digit Returns, Say Analysts

Despite concerns over valuation and election-related uncertainties, the Indian stock market achieved remarkable milestones last week. Benchmarks such as the Nifty 50 reached a new high of 23,026.40, and the Sensex set a fresh peak at 75,636.5 on Friday, May 24. This upward trend continued for the second consecutive week, with both the Sensex and the Nifty 50 gaining 2%.

Experts expect these benchmarks to sustain their gains. However, as the Lok Sabha election result day draws closer, there could be short-term volatility. According to Ajit Mishra, SVP of research at Religare Broking, the market’s buoyancy over the last two weeks has countered the previously bearish sentiment. The Nifty is expected to move toward the 23,150-23,400 range soon.

Stocks to Buy: Tata Motors, L&T Among 9 Stocks That May Give Double-Digit Returns in the Short Term

Recommended Stocks

1. Tata Motors

• LTP: ₹960.55

• Target Price: ₹1,200

• Stop Loss: ₹909

• Upside Potential: 25%

Ajit Mishra pointed out that Tata Motors has taken strong support at the ₹920 mark and bounced strongly from those levels, indicating a potential double-bottom reversal pattern on its daily charts. With the RSI (14) near 46 and witnessing a minor uptick from lower levels, the stock is poised for targets of ₹1,200 and above from a short-term perspective.

2. Tata Consumer Products

• LTP: ₹1,098.25

• Target Price: ₹1,300

• Stop Loss: ₹1,050

• Upside Potential:18%

Tata Consumer Products has given a strong breakout above its trendline resistance of ₹1,115 and successfully closed above the same. The RSI (14) is rising from 37 to 53, indicating strong momentum. The stock appears to be forming a strong base at the ₹1,056 mark, making it a buy with a strict stop loss at ₹1,050.

3. Larsen & Toubro (L&T)

• LTP: ₹3,625.90

• Target Price: ₹4,000

• Stop Loss: ₹3,400

• Upside Potential: 10%

L&T is trading near ₹3,600, exhibiting a strong reversal from the bottom level. The price action has formed a bullish engulfing pattern with substantial volume, signalling a bullish reversal following a correction from the top. L&T could achieve a target price of ₹4,000 in the near term. Implement a stop loss at ₹3,400 to manage risk.

4. PNB Housing Finance

• LTP: ₹796.45

• Target Price: ₹900

• Stop Loss: ₹742

• Upside Potential: 13%

PNB Housing Finance trades above its key moving averages (20, 50, and 200-day EMAs). With housing demand likely to increase, this stock could benefit from increased demand in the housing finance sector, driven by favorable government policies during election periods.

5. Atul

• LTP: ₹5,880.20

• Target Price: ₹6,650

• Stop Loss: ₹5,760

• Upside Potential: 13%

Atul, a specialty chemicals company, could see growth due to its strong market position. With an RSI of 40 on the weekly and 46 on the daily time frame, the stock is trading in a small range. A better entry point would be ₹6,050 with a target of ₹6,650.

6. Samvardhana Motherson International

• LTP: ₹140.15

• Target Price: ₹160

• Stop Loss: ₹128

• Upside Potential: 14%

Samvardhana Motherson has broken out of its consolidation range and is likely to sustain this breakout. It is a buy at ₹137, targeting between ₹145 and ₹160.

7. Ramco Industries

• LTP: ₹237.05

• Target Price: ₹320

• Stop Loss: ₹220

• Upside Potential: 35%

Ramco Industries, involved in the construction materials sector, is trading above its key moving averages. The stock is recommended for purchase at ₹240 to ₹247, with a target price range of ₹270 to ₹320.

8. Saurashtra Cement

• LTP: ₹124

• Target Price: ₹150

• Stop Loss: ₹115

• Upside Potential: 21%

Saurashtra Cement could benefit from increased construction activity and infrastructure projects. The stock is a buy at ₹120 to ₹123, with a target range of ₹128 to ₹150.

9. Latent View Analytics

• LTP: ₹488.55

• Target Price: ₹600

• Stop Loss: ₹470

• Upside Potential: 23%

Latent View Analytics is an India-based data and analytics company trading above its 20, 50, and 200-day SMAs. It delivered a 52% return within one year and looks good to buy at ₹495 to ₹500, with a target range of ₹530 to ₹600.

These stocks, recommended by analysts, have the potential to deliver significant returns in the short term, despite the broader market’s high levels and upcoming election-related volatility.