Stock Recommendations: 5 High-Quality Stocks Near 52-week Lows, Good Time to Buy?

Stocks To Buy: Corrections in the stock market over the last six-eight weeks, volatility, and broader concerns around inflation have been unnerving for investors, who had enjoyed a bull run in the last one-and-a-half years.

In its ‘State of the Economy’ report released last month, the RBI stated that while the economy has consolidated its recovery, there are near-term challenges on account of weakening growth, elevated inflation, supply disruptions on account of geopolitical spillovers, and financial market volatility stemming from synchronised monetary tightening.

While the prolonged Russia-Ukraine war has resulted in export restrictions by several countries and has resulted in higher food prices, especially of wheat and corn and edible oils, crude oil prices continue to remain at elevated levels.

Inflation is a concern not just for India but has hit multi-decade highs across several economies.

There is a general sense among leading market experts that the broad indices may remain under pressure in the near term on account of inflation concerns, FPI outflows and overall domestic and global growth concerns. The rise in interest rates on account of inflation is likely to raise the cost of capital and working capital requirements, and may put some pressure on the margins of companies, which may impact their profitability and share prices over the next couple of quarters.

However, markets have shown a tad bit of recovery, over the last 1-week, but, still remain substantially lower than 52-week highs. In the process, there are several stocks that are trading near 52-week lows. Experts say given this perspective, investors need to be careful while taking positions for the short term and invest in quality stocks. Some of these quality names that are currently trading near their 52-week lows are a good opportunity to accumulate.

Here are a few quality stocks trading near their 52-week lows and are recommended below by Rajesh Palviya, VP – Technical and Derivative Research, Axis Securities.

TVS Motors

The stock is making a series of higher highs and higher lows on all timeframes. On the weekly chart, the stock has given a multi-month breakout indicating strength in the near to medium term. The stock is trading above all major moving averages indicating a positive bias.

TVS MOTORS | BUY |Stop Loss : Rs 790| Price Target: Rs 890-900

Westlife

The stock has given a consolidation breakout on the daily chart at 480 levels. On the weekly chart, the stock has bounced from 430 levels after forming a hammer formation indicating buying at lower levels. The stock continues to trade above all major moving averages indicating positive bias.

Westlife | BUY |Stop Loss : Rs 460| Price Target: Rs 520-530

Coal India

The stock has bounced from important Fibonacci levels of 50% retracement indicating buying at a lower level. On the weekly chart, the stock is making a series of higher highs and higher lows indicating a sustained uptrend. The stock continues to trade above all major moving averages indicating positive bias.

Coal India | BUY |Stop Loss : Rs 175| Price Target: Rs 210-220

Nestle India

The stock is making a series of higher highs and higher lows on a daily timeframe. On the weekly chart, the stock has bounced from 16000 levels indicating buying at lower levels. The stock is trading above 20-/50 moving averages indicating positive bias.

Nestle India | BUY |Stop Loss: Rs 16,500| Price Target: Rs 19,000-19,400

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