Top 9 Stocks to Watch: Zomato, SBI Card, Bank of Baroda Set for 8-20% Gains in the Next 3-4 Weeks, According to Analysts

In the midst of market uncertainty driven by geopolitical tensions in the Middle East and crucial U.S. job data affecting rate cut forecasts, the Indian stock market is seeing increased volatility. The Nifty 50 index, India’s benchmark for equity markets, saw substantial fluctuations on October 7, 2024, reflecting investor caution. The volatility index, India VIX, surged over 6%, highlighting the market's unstable environment. Despite this uncertainty, financial experts have identified several quality stocks expected to rise by 8-20% over the next few weeks. Among the top picks are SBI Cards, Bank of Baroda, and Som Distilleries & Breweries Ltd (SDBL), among others.

Volatile Markets Amid Global Tensions

On Monday, the Nifty 50 opened strong, showing gains of about 0.5%, only to reverse course, dropping by more than 0.5% later in the morning session. This seesaw movement reflects growing investor anxiety amid rising Middle East tensions and the release of stronger-than-expected U.S. job data. These developments have diminished hopes for a substantial rate cut by the U.S. Federal Reserve in November, adding further pressure to global markets.

In the Indian context, the focus now shifts to several critical events in the week ahead, including the Reserve Bank of India's Monetary Policy Committee (RBI MPC) meeting, the release of FOMC (Federal Open Market Committee) meeting minutes, and U.S. Consumer Price Index (CPI) data. These events, along with ongoing Q2 earnings reports, are expected to heavily influence market movement in the near term.

Amid this backdrop, analysts are advising investors to be cautious but proactive by focusing on fundamentally sound stocks with strong potential for upward movement. Here’s a deep dive into the top stock recommendations.

SBI Cards and Payment Services: A Bullish Pattern Emerges

• Previous Close: ₹743.15

• Target Price: ₹810

• Stop Loss: ₹692

• Upside Potential: 9%

SBI Cards and Payment Services has caught analysts’ attention, particularly after experiencing a significant drop from its peak price of ₹817.40. The stock has recently tested a key demand zone, coinciding with a critical 61.8% retracement level from its previous uptrend.

The emergence of a bullish bat pattern on its daily chart has further strengthened analysts' conviction. According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, this technical setup presents a lucrative buying opportunity. Patel recommends going long in the ₹730-735 range, with a target of ₹810, which offers a potential upside of 9%.

Som Distilleries & Breweries Ltd (SDBL): A Reversal in Sight

• Previous Close: ₹111.81

• Target Price: ₹132

• Stop Loss: ₹101

• Upside Potential: 18%

Som Distilleries & Breweries Ltd has seen a significant decline of nearly 29% since reaching its high of ₹149 in May 2024. This steep correction brought the stock down to a crucial support level, forming a triple bottom pattern in the ₹105-108 range. Triple bottoms often signify a strong reversal, suggesting the stock may be on the brink of a recovery.

With additional confirmation from a bullish bat pattern on the daily chart, SDBL looks poised for a bounce-back. Patel recommends accumulating shares in the ₹110-112 range, with a potential upside target of ₹132 and a stop loss at ₹101.

Bank of Baroda (BoB): Nearing the End of a Bearish Phase

• Previous Close: ₹250.59

• Target Price: ₹270

• Stop Loss: ₹239

• Upside Potential: 8%

Bank of Baroda, one of India’s leading public sector banks, appears to be nearing the end of a nearly three-month-long bearish phase. A bullish reversal pattern has formed on the stock’s daily chart, specifically a triple bottom structure in the ₹230-₹235 zone. Additionally, the stock is trading near its 200-day exponential moving average (DEMA), adding further technical appeal.

With daily RSI breaking a bearish trendline and showing bullish divergence, momentum seems to be shifting. Patel recommends going long with a target of ₹270 and a stop loss at ₹239.

Havells India: Sustaining a Bullish Trend

• Previous Close: ₹1,934.45

• Target Price: ₹2,080, ₹2,100

• Stop Loss: ₹1,850

• Upside Potential: 9%

Havells India continues to show resilience despite a nearly 10% decline from its recent swing high. The stock has maintained its upward trend of higher highs and higher lows, signaling sustained bullish momentum. Trading near a falling trendline and key moving averages, analysts expect Havells to remain supported at these levels, with a potential upside of 9%.

PNB Housing Finance: At a Critical Support Level

• Previous Close: ₹944.85

• Target Price: ₹1,035, ₹1,055

• Stop Loss: ₹882

• Upside Potential: 12%

PNB Housing Finance has pulled back to a critical support level around its 55-day exponential moving average (EMA), after retracing 61.8% of its previous uptrend. The stock remains resilient, and analysts view this as a favorable risk-reward opportunity. A target range of ₹1,035-₹1,055 with a stop loss at ₹882 provides a compelling upside potential of 12%.

Ashok Leyland: A Potential Trend Reversal

• Previous Close: ₹225.39

• Target Price: ₹247, ₹252

• Stop Loss: ₹212

• Upside Potential: 12%

Ashok Leyland has formed a double bottom pattern on the weekly chart, indicating a potential reversal in the downward trend. The stock is trading above its 55-week EMA, which provides strong downside protection. Analysts believe the recent decline in volume suggests diminishing selling pressure, offering a 12% upside from current levels.

Zomato: Momentum Building for a Bullish Breakout

• Previous Close: ₹275.30

• Target Price: ₹310, ₹320

• Stop Loss: ₹260

• Upside Potential: 16%

Zomato has shown strong signs of recovery from a rising trendline, backed by increasing trading volume. Analysts believe that if the stock closes above ₹280, it could quickly reach levels of ₹310 and ₹320. To protect against downside risk, a stop loss at ₹260 is advised.

Home First Finance: Poised for Significant Gains

• Previous Close: ₹1,247.85

• Target Price: ₹1,450, ₹1,500

• Stop Loss: ₹1,155

• Upside Potential: 20%

Home First Finance is showing strong bullish momentum, having recently rebounded from a key support level on the daily chart. With increased trading volume and a favorable technical setup, analysts recommend buying with targets of ₹1,450-₹1,500.

Piramal Pharma: Awaiting a Bullish Breakout

• Previous Close: ₹229.23

• Target Price: ₹255, ₹260

• Stop Loss: ₹215

• Upside Potential: 13%

Piramal Pharma is consolidating below a falling trendline, with increasing trading volume signaling potential upward momentum. A close above ₹230 could set the stage for targets of ₹255 and ₹260.

Final Thoughts: Focus on Quality Amid Volatility

Despite the turbulent market conditions, analysts recommend focusing on quality stocks with strong fundamentals and technical patterns. The stocks listed above represent potential opportunities for gains in the short term, but investors should remain cautious and adhere to stop-loss levels to mitigate risk in these volatile times.