Weekly Trading Guide: Top 3 Shares To Buy As Recommended By Motilal Oswal

At 7.30 a.m. on Monday, Gift Nifty, formerly SGX Nifty, was trading at 19,277.0, up 39.5 points or 0.21%. The index began trading at 19,237.5 and ranged from an intraday high of 19,289.0 to a low of 19,271.5, indicating that the Indian stock market is off to a good start today. Sensex closed at 64,886.51 on Friday, down 365.83 points or 0.56%, and Nifty 50 closed at 19,265.80, down 120.90 points or 0.62%. The Sensex lost 156.51 points (0.24%) during the trading week of August 21-25, while the Nifty 50 ended with a 0.50 percent decline.

Nifty Outlook

Commenting on Nifty prediction, Rupak De, Senior Technical analyst at LKP Securities said "The Nifty index has declined to a significant moving average (55EMA) support level. The sentiment is expected to stay bearish as long as the index remains below 19450, where the 21-day Exponential Moving Average (EMA) is positioned on the daily timeframe. If the index decisively falls below 19240, it could potentially lead the Nifty towards the 19000 mark."

Bank Nifty Outlook

Commenting on Bank Nifty prediction, Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said "The Bank Nifty index witnessed an ongoing struggle between bulls and bears, resulting in a phase of range-bound trading. The support level is clearly visible around 44000, coinciding with significant put writing, which could act as a stronghold against downward movements. Conversely, resistance can be observed around 45000, where the highest open interest is seen on the call side, indicating potential selling pressure. A decisive break on either side of this range could trigger trending moves. Despite this, the prevailing bias appears to lean towards the bullish side within the range."

Stocks To Buy This Week

Below are the top 3 stock recommendations for the week as recommended by the Technical & Derivatives team, Broking & Distribution, Motilal Oswal Financial Services Ltd.

Asian Paints

BUY ASIAN PAINTS At CMP of Rs 3259, Stop-loss: Rs 3190, Target: Rs 3400

Asian Paints has formed a strong base near 3150 - 3160 zones and gave a range breakout after eight sessions. It formed a strong bullish candle and gave a falling supply trend line breakout with decent surge in volumes. RSI is giving positive crossover on daily scale which suggests momentum to pick up in coming sessions. Stock is holding its gains in spite of market volatility and thus recommending to buy the stock with keeping stop loss below 3190 levels for an upside target towards 3400 zones.

Persistent Systems

BUY PERSISTENT At CMP of Rs 5138, Stop-loss: Rs 5000, Target: Rs 5400

Persistent is holding strong on a weekly scale and gave a breakout from its falling supply trend line on daily scale. It formed a bullish candle and holding well above its short term moving average. Relative strength Index (RSI) is also giving breakout on daily scale which suggest stock likely to scale to its previous life time highs in coming sessions. Good buying interest is visible across midcap IT space and thus recommending to buy the stock with keeping stop loss below 5000 for an upside move towards 5400 levels.

Federal Bank

BUY FEDERAL BANK At CMP of Rs: 140, Stop-loss: Rs 134, Target: Rs 152

Federal bank is on the verge of range breakout on weekly scale and formed a strong bullish candle. It has given highest weekly close after thirty four weeks and trading well above its short term moving averages on daily scale. Relative strength Index is also holding well above 68 zones on weekly scale which suggests strength in the stock. Thus recommending to buy the stock with keeping stop loss below 134 for an upside move towards 152 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.