From Trent To HAL: Motilal Oswal Recommends 3 Stocks To Buy This Week

The technical & derivatives team of broking & distribution, Motilal Oswal Financial Services Ltd has recommended 3 stocks to buy this week. The team has rated buy call on the shares of Escorts Kubota, Hindustan Aeronautics and Trent based on technical analysis.

Escorts Kubota

BUY ESCORTS AT CMP: Rs 3106, STOP-LOSS: Rs 2970, TARGET: Rs 3400

Escorts have seen a good recovery from lower zones on a monthly scale and formed a strong bullish candle as it negated the formation of lower lows after six months. On a weekly scale, the stock gave a falling supply trend line breakout above the 3040 zones and formed a bullish candle.

On a daily scale, stock is trading above its short-term moving averages and risk reward is quite favourable at the current juncture. Momentum indicator Relative Strength Index (RSI) is also moving higher which indicates momentum to continue in coming sessions. Thus looking at the overall chart structure recommending to buy the stock with keeping stop loss below 2970 levels on closing basis for a target towards 3400 zones.

Hindustan Aeronautics

BUY HINDUSTAN AERONAUTICS AT CMP: Rs 3751, STOP-LOSS: Rs 3600, TARGET: Rs 4050

HAL is in an overall uptrend and forming higher lows on a monthly scale from the past five months. On a weekly scale, the stock is forming higher lows from the past four weeks and gave the highest weekly close. On a daily scale, the stock gave consolidation breakout above 3650 zones and formed a strong bullish candle with a good surge in volumes. It is taking multiple support near its 50DEMA and base of the stock is shifting higher. 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 recommending to buy the stock with keeping stop loss below 3600 levels on closing basis for a new lifetime high target towards 4050 zones.

Trent

BUY TRENT AT CMP: Rs 4158, STOP-LOSS: Rs 3950, TARGET: Rs 4500

Trent is a strong uptrend and is on the verge of a Pole & Flag breakout on the weekly chart after nine weeks. On a daily scale, the stock formed a strong bullish candle with a long lower shadow and gave the highest daily close. The stock is perfectly holding to its 20DEMA and has been a big outperformer within the midcap space. Momentum indicator Relative Strength Index (RSI) is also on the verge of positive crossover which indicates momentum to pick up in coming sessions. Thus looking at the overall chart structure we are recommending to buy the stock with keeping the stop loss below 3950 levels on closing basis for a new high target towards 4500 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.