Weekly Trading Guide: 3 Technical Stocks To Buy This Week As Recommended By Motilal Oswal

The Sensex topped 67,927 points on Friday, while the Nifty hit an intraday record high of 20,223 points. The Nifty gained 89 points, wrapping up at 20,192, while the Sensex gained 320 points, closing at 67,839 respectively. Additionally, the midcap index climbed by 114 points, ending at 40,830, while the Nifty Bank gained 231 points to finish at 46,232. Monetary policy will receive a lot of attention this week as Federal Reserve officials meet for the latest FOMC meeting on Tuesday, with an interest rate decision expected on Wednesday, September 20.

This week the domestic market is likely to remain volatile tracking global cues as China will release the loan prime rate for 1-year and 5-year loans on September 20 and Japan will release inflation data on September 22 as well as any movement in the rupee against the dollar, US bond yields, and crude oil price. Despite a volatile week, here are the three stocks that have been picked up with buy rating by the technical & derivatives team, broking & distribution, Motilal Oswal Financial Services Ltd.

Axis Bank

BUY AXIS BANK @ CMP of Rs 1027, Stop-loss: Rs 990, Target: Rs 1111

Axis bank is trading at lifetime highs and gave a new trend line breakout on weekly scale after fourteen weeks. It formed a strong bullish candle on weekly scale and structure of higher highs is intact from past few weeks. On daily scale as well the stock is forming higher highs from past six sessions and base of the stock is shifting higher. Relative strength Index (RSI) has also gave breakout on weekly scale which suggests strength in the stock. It has been outperforming the banking index and stock is likely to scale new life highs in coming sessions. Thus recommending to buy the stock with keeping stop loss below 990 for an upside move towards 1111 levels.

Tech Mahindra

BUY TECH MAHINDRA @ CMP of Rs 1300, Stop-loss: Rs 1250, Target: Rs 1400

Tech Mahindra has been forming higher lows on weekly scale and gave a consolidation breakout after nine sessions on daily scale. It has formed a strong bullish candle and finally manage to closed above its crucial hurdle of 1270 zones. Relative strength Index (RSI) is also moving higher on daily scale which suggests strength in the stock. Good buying interest is visible in IT space and risk reward is quite favorable at current juncture. Thus recommending to buy the stock with keeping stop loss below 1250 for an upside move towards 1400 levels.

Maruti Suzuki

BUY MARUTI SUZUKI @ CMP Rs: 10525, Stop-loss: Rs 10200, Target: Rs 11000

Maruti Suzuki is trading at life time high territory and forming higher lows on weekly scale from past four weeks. It also retested the same on weekly chart and gave highest weekly close ever. It formed a Bullish candle on weekly scale with decent surge in volumes. Base of the stock has shifted higher and buying is visible across Auto space. Thus recommending to buy the stock with keeping stop loss below 10200 on closing basis for a new life highs target towards 11000 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.