IRCTC, Mazagon, DLF among 5 stocks with up to 19% upside potential: Analyst

Mazagon Dock, Concor, IRCTC, DLF and SRF can bounce back from oversold levels owing to a positive divergence on the RSI indicator, explains Muthuselvaraj, technical analyst at Mirae Asset ShareKhan.

Amid the current market nearly 1 in every 5 Nifty 500 stocks traded in oversold territory based on the 14-day Relative Strength Index (RSI) parameter.  The RSI indicator helps determine overbought and oversold conditions on a scale of 0-100, with a reading below 30 considered the oversold zone.  A technical scan of Nifty 500 stocks, as of yesterday, revealed that 96 shares were technically trading in oversold zone, with a RSI reading below 30. READ MORE  Analysts caution that oversold conditions do not necessarily mean that the stocks can bounce back, but one needs to be selective.  Against this background, Muthuselvaraj, technical analyst at Mirae Asset ShareKhan identifies 5 stocks - Mazagon Dock Shipbuilders, Container Corporation (Concor), IRCTC, SRF and DLF that can bounce back from oversold zones owing to a positive divergence seen on the key RSI indicator.  Here's a detailed technical analysis on each of these 5 stocks by Muthuselvaraj: 

IRCTC

Last close: ₹562 

 

 

  IRCTC has shown a lower top, lower bottom pattern on the daily chart. For the last three sessions, it has consolidated between ₹547 and ₹578, highlights Muthuselvaraj, technical analyst at Mirae Asset ShareKhan.  "Considering the anticipated pullback rally and the positive divergence shown by the momentum indicator RSI, which suggests buying interest, we expect a short to mid-term upside rally towards ₹625, with key support at ₹520," explains the analyst.  This implies a potential 11.2 per cent upside when compared to yesterday's closing price.   

DLF

Last close: ₹585 

 

  Muthuselvaraj notes that DLF has exhibited a lower-top and lower-bottom pattern, forming a falling channel on the daily chart. The price has also shown positive trading at the lower end.  The momentum indicator RSI displays positive divergence, suggesting a pullback rally that could lead towards ₹670, with key support at ₹545, says the analyst from Mirae Asset ShareKhan. This translates into an upside potential of 14.5 per cent from the last close. 

SRF

Current Market Price: ₹2,563 

 

  SRF has been trading within a consolidation phase since January 2025. It is currently in a demand zone, and as long as it holds support at 2350, a pullback rally is expected towards ₹2,880 (likely upside 12.4 per cent) with multi-support at ₹2,470, says Muthuselvaraj.  The Daily RSI also shows positive divergence, having turned from an oversold point, suggesting the positive momentum will continue for the short term, the analyst adds. 

   Mazagon Dock Shipbuilders

Current Market Price: ₹2,352 

 

  Mazagon Dock has witnessed positive movement after correcting from its peak of ₹3,700, forming a falling channel on the daily chart. It has currently consolidated between ₹2,125 and ₹2,415, explains the analyst.  ALSO READ | Here's why Mazagon Dock stock soared 18% in 2 days  Considering the buying interest Muthuselvaraj believes that the pullback rally could remain intact towards ₹2,800 for the short term. Thus, suggesting a potential gain of around 19 per cent. 

Container Corporation

Current Market Price: ₹480 

 

  Container Corporation is trading in a lower-top, lower bottom pattern formation, forming falling channels on the daily chart, says the analyst from Mirae Asset ShareKhan.  "The stock has taken support at the 61.8 per cent (₹460) retracement between the range of ₹191 and ₹911 which was the low during the period of Mar 2020 to Jun 2024 on the weekly chart. The weekly RSI also shows positive divergence indicating buying interest with a pullback rally that will be intact in the upcoming time frame," explains Muthuselvaraj.  The analyst recommends buying the stock, with a stop at ₹435, for a likely upside target of around 18.8 per cent to ₹570 levels.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.