Technical Stock Picks: 3 Trade Calls Along With Chart For The Week By Motilal Oswal

The technical & derivatives team of Motilal Oswal Financial Services Ltd have initiated a buy call on 3 stocks for the week based on a technical analysis. The team has recommended buying the shares of TVS Motor Company, Persistent Systems and DLF.

TVS Motor Company

BUY TVS MOTOR AT CMP: Rs 2138, STOP-LOSS: Rs 2050, TARGET: Rs 2350

TVS Motor is in an overall uptrend and forming higher lows on a monthly scale from the past eleven months. On the weekly scale, it gave a range breakout after nine weeks and formed a strong bullish candle which suggests bulls are holding strong command at higher zones. On a daily scale as well, the stock gave a range breakout with a decent surge in volumes.

It is perfectly respecting its 50 DEMA and the stock has been a huge outperformer within the Auto space. Momentum indicator Relative Strength Index (RSI) is also moving northward which indicates momentum to continue in coming sessions. Thus, looking at the overall chart structure we are recommending to buy the stock with keeping a stop loss below 2050 levels on a closing basis for a new lifetime high target towards 2350 zones.

Persistent Systems

BUY PERSISTENT AT CMP: Rs 8870, STOP-LOSS: Rs 8650, TARGET: Rs 9300

Persistent is trading at lifetime high territory and structure on higher highs - higher lows are intact on a monthly scale. On a weekly scale, the stock is forming lows and giving the highest weekly close. On the daily scale, the stock gave a consolidation breakout above 8600 zones and formed a bullish candle

It is holding well above its 20 DEMA and good buying interest is visible in the IT space. Momentum indicator Relative Strength Index (RSI) is giving a bullish crossover which suggests momentum to continue in coming sessions. Thus, looking at the overall chart structure we are recommending to buy the stock with keeping the stop loss below 8650 levels on a closing basis for a new lifetime target towards 9300 zones.

DLF

BUY DLF AT CMP: Rs 863, STOP-LOSS: Rs 830, TARGET: Rs 920

DLF is in continuous uptrend and forming higher top- higher bottom formation on monthly scale from past five months. On weekly scale as well, it formed a strong bullish candle and gave range breakout. On daily scale the stock retested the breakout zone and inching higher. It is perfectly respecting to 20 DEMA and formed a small bullish candle on daily scale.

Momentum indicator Relative Strength Index (RSI) is holding at higher zones which suggests momentum to continue in coming sessions. The stock has been outperformer within Realty space and thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 830 levels on closing basis for a target towards 920 zones.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.