HDFC Life To Indigo: Technical Stock Picks For The Week By Motilal Oswal

After Nifty closed over 25,000 for the first time today, the technical & derivatives team of broking & distribution firm Motilal Oswal Financial Services Ltd recommended three stocks to buy this week based on technical analysis. The Nifty's previous all-time high currently stands at 25,080, which will serve as a short-term hurdle right away. These are some lucrative stocks that investors might consider buying, although this week's market attention will be on India & US GDP data figures and the monthly expiry of derivatives.

Market Outlook

Vikram Kasat, Head - Advisory, PL Capital - Prabhudas Lilladher, said, "Indian markets today got a Powell booster and followed global peers as Federal Reserve Chairman said 'time has come' for interest rate cuts. Nifty is now back above 25,000 mark, only 68 points away from breaching its all-time high. Valuations in the large cap space is comfortable as Nifty is currently trading at 18.9x 1-year forward EPS, which is nearly at par with 15-year average of 19x. With expectations of strong festival season demand; rural revival and interest rate cuts will provide support to markets, along with periods of consolidation. Focus has to shift to quality stocks now.."

Stocks To Buy This Week

The technical research analysts of Motilal Oswal Financial Services have recommended below stocks to buy this week.

HDFC Life Insurance Company

BUY HDFC LIFE AT CMP: 729, STOP-LOSS: 690, TARGET: 800

HDFC Life is in a strong uptrend and forming higher highs - higher lows on a monthly scale. On a weekly scale, it gave a range breakout after three weeks and formed a strong bullish candle. On a daily scale as well the stock has formed higher highs from the last few sessions and good buying interest is visible across the Insurance sector. Momentum indicator RSI is also moving higher which suggests momentum to continue in coming sessions up going ahead and the stock holding well above its short-term moving averages. Thus looking at the overall chart structure we are recommending to buy the stock while keeping the stop loss below 690 levels on closing basis for a new life time high target towards 800 zones.

Indigo

BUY INDIGO AT CMP: 4710, STOP-LOSS: 4500, TARGET: 5100

Indigo is trading at life time high territory and is in a strong uptrend across all time frames. On weekly scale it gave strong range breakout on weekly scale after fourteen weeks and formed a strong bullish candle. On daily scale as well it is forming higher lows from past five sessions and gave highest daily close. Momentum indicator RSI also gave positive crossover on weekly scale which suggest momentum to continue in coming sessions. Good buying interest is seen in Midcap space and stock likely to outperform. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 4500 levels on closing basis for a new life time high target towards 5100 zones.

Dixon Technologies (India)

BUY DIXON TECHNOLOGY INTL AT CMP: 13270, SL: 12650, TARGET: 14250

Dixon Tech is in strong uptrend and retested the previous breakout zone on daily scale. On weekly scale it formed a strong bullish candle with highest ever weekly close. It is trading above its short term moving averages and stock has been huge performer within Midcap space. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 12650 levels on closing basis for a new life time high target towards 14250 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.