Persistent Systems To HPCL: 3 Positive Breakout Stocks To Buy This Week; A Guide By Motilal Oswal

The Indian equity markets had an upbeat start to September on Monday. The Nifty index continued its winning run, reaching 13 consecutive positive wraps up, amid conflicting global cues. The index closed the day just below 25300, up 0.17 per cent. Keeping exclusivity while choosing stocks is highly advised in light of Nifty's recent winning run. With that in mind, Motilal Oswal Financial Services Ltd.'s technical and derivatives team has identified three breakout stocks that investors should look to buy this week.

Persistent Systems

BUY PERSISTENT AT CMP 5170, STOP-LOSS: 4950, TARGET: 5600

The stock is in an overall uptrend and holding gains at higher zones. It has given a range breakout in the past seven weeks and formed a strong bullish candle on the weekly chart. The ADX Indicator has turned up on the daily and weekly scale indicating the up move has strength. Strong buying is visible across IT stocks and it is likely to outperform in coming sessions. Thus looking at the overall chart structure we are recommending to buy the stock while keeping the stop loss below 4950 levels on a closing basis for a new lifetime high target towards 5600 zones.

Icici Prudential Life Insurance Company

BUY ICICI PRU LIFE AT CMP: 753, STOP-LOSS: 715, TARGET: 820

The stock is on the verge of giving pole and flag breakout on the weekly scale after six weeks and gave the highest weekly close. On a daily scale it is perfectly respecting 20 DEMA and the base of the stock is shifting higher. Strong buying is visible across the Insurance space which may take the prices higher. Momentum indicator RSI is positively placed which will support the up move. The overall price structure is bullish which could take the stock to fresh lifetime highs and we are recommending to buy the stock with keeping the stop loss below 715 levels on a closing basis for a new lifetime high target towards 820 zones.

HPCL

BUY HIND PETRO AT CMP: 416, STOP-LOSS: 395, TARGET: 455

Hind petro is trading at lifetime-high territory and is in a strong uptrend across all time frames. On the weekly scale, it gave a strong range breakout on the weekly scale after twenty-eight weeks and formed a strong bullish candle. On a daily scale as well it is forming higher lows from the past few sessions and gave the highest daily close. Momentum indicator RSI also moving higher which suggests momentum to continue in coming sessions. Good buying interest is seen in OMCs and stock is likely to outperform. Thus looking at the overall chart structure we are recommending to buy the stock while keeping the stop loss below 395 levels on a closing basis for a new lifetime high target towards 455 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.