Weekly Trading Guide: 3 Stocks To Buy This Week Guided By Motilal Oswal

On Friday, benchmark indices sank to close down for a fourth straight day. After three weeks of gains, the Nifty and Sensex dropped. Except for PSU Banks, all sectoral indices also declined in the previous week, with Realty, Metal, and Banks seeing the worst declines. Heavyweights like HDFC Bank and Reliance as well as sectoral indices like Realty, Metal, and Banks contributed to the Sensex and Nifty 50's above 2.5% weekly declines.

This week's attention will be focused on both domestic and international macroeconomic data, stock market trends, the price of crude oil, global cues, the movement of the rupee versus the dollar, and FIIs or DIIs inflow or outflows. The technical & derivatives team, broking & distribution, Motilal Oswal Financial Services Ltd. has recommended buying three technical stocks.

Asian Paints

BUY ASIAN PAINTS AT CMP of Rs 3275, STOP-LOSS: Rs 3215, TARGET: Rs 3400

Asian Paints has formed a strong base near 3200 zones on daily scale and is all set to give a consolidation breakout after thirty sessions. It formed a Bullish candle on daily and weekly scale in spite of market weakness and managed to hold above its 50DEMA. The relative strength Index (RSI) has also given a breakout on daily scale which suggests momentum in the stock to continue in coming sessions. Thus, recommending to buy the stock with keeping the stop loss below 3215 for an upside move towards 3400 levels.

TCS

BUY TATA CONSULTANCY SERVICES AT CMP of Rs 3603, STOP-LOSS: Rs 3530, TARGET: Rs 3750

Tata Consultancy has given classical Cup & Handle pattern breakout on weekly scale and forming higher lows from the past three weeks. On daily scale it is all set to give Pole & Flag breakout and form a bullish candle. The base of the stock is shifting higher and it is holding well above its short-term moving average on daily scale. We have seen good buying interest in the IT sector and at the current juncture risk reward is quite favorable. Thus, recommending to buy the stock with keeping the stop loss below 3530 for an upside move towards 3750 levels.

Bank of Baroda

BUY BANK OF BARODA CMP 215 SL 205 TRGT 235

Bank of Baroda is in an overall uptrend and is on the verge of a trend line breakout on weekly scale. It is forming higher highs - higher lows on a weekly scale from the past three weeks and holding well above its 20WEMA with decent surge in volumes. Supports are gradually shifting higher and good buying is visible across PSU space. Relative strength Index (RSI) is holding near 68 zones which suggests strength in the stock. Thus, recommending to buy the stock with keeping the stop loss below 205 on a closing basis for an upside target towards 235 levels.

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.