Weekly Trading Stocks: 3 Most Profitable Chart Patterns For The Week As Recommended By Motilal Oswal

The Sensex gained 333.35 points or 0.50% on September 8 to close at 66,598.91. Nifty 50, meanwhile, climbed on Friday by 92.90 points, or 0.47%, to close at 19,819.95. The BSE Midcap and Smallcap indices concluded the day with advances of 297.07 points and 165.32 points, respectively, on the sectoral index front after reaching fresh highs of 32,692.74 and 38,369.21. At the close of around 45,156.40, Bank Nifty soared 278.05 points or 0.62%. Monday's activity of the Gift Nifty indicated a negative start for Indian markets at the opening bell.

At 08.30 am on Monday, the Gift Nifty, previously the SGX Nifty, was trading at 19,920.50, down 17.50 points or 0.09%. The index started trading at 19,938.0 and ranged from an intraday high of 19,940.0 to a low of 19,915.0. Prior to key inflation statistics, traders will respond to the two-day G20 conference and global trends. Later this week, both India and the US release their CPI statistics which may trigger volatility in the market. The Technical & Derivatives Team, Broking & Distribution, Motilal Oswal Financial Services Ltd. has recommended three technical stocks to buy in light of the Indian market's weakness as a result of unfavourable domestic and international factors.

DLF

BUY DLF @ CMP of Rs 540, STOP-LOSS: Rs 525, TARGET: Rs 575

DLF has been in overall uptrend and forming higher lows on weekly scale from previous three weeks. On daily scale the stock has given trend line breakout after forty five sessions and formed a strong bullish candle with surge in volumes. RSI is also above 70 zones which suggests overall strength in the stock and good buying interest is visible across Realty space. Thus looking at the overall chart structure recommending to buy the stock with keeping stop loss below 525 levels for a target towards 575 zones.

SBI

BUY STATE BANK OF INDIA @ CMP Rs 584, STOP-LOSS: Rs 568, TARGET: Rs 615

SBIN has formed a strong base near 570 zones on weekly scale and formed a strong bullish candle. On daily scale the stock has given range breakout and managed to close above its crucial 50 DEMA. Relative strength Index (RSI) has given Inverse Head & Shoulder pattern breakout which suggests momentum is likely to continue in coming sessions. Good buying is visible across PSU banks and thus recommending to buy the stock with keeping stop loss below 568 for an upside move towards 615 levels.

Bharat Electronics

BUY BHARAT ELECTRONICS @ CMP Rs 143, STOP-LOSS: Rs 137, TARGET: Rs 155

BEL is trading at life time high territory and forming higher highs - higher lows on monthly scale from past seven months. On weekly scale it has fresh consolidation breakout after ten weeks and base of the stock is shifting higher. On daily scale it is holding well above its short term moving averages and RSI has given falling trend line breakout which suggests momentum to pick up in coming sessions. Thus recommending to buy the stock with keeping stop loss below 137 for an upside move towards 155 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.