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

For the second day in a row, the Nifty saw a dull close. On Friday, it dropped 106 points to close in the red at 18,665.50. This week, the Nifty and Sensex ended a four-week streak of gains. Nifty Media and Nifty Metal had the most losses among the sectoral indices.

Nifty Outlook

The Nifty witnessed a weak closing for the second consecutive day in a row. It has closed in the negative down ~106 points. On the daily charts, we can observe that the Nifty has closed exactly at the 20-day moving average (18668) which has been holding on since the rally started in April 2023. The daily momentum indicator has a negative crossover which is a sell signal. On the weekly charts, we can observe a negative close after 4 consecutive weekly gains. Also, considering the broader market, The Midcap index and small cap Index have witnessed correction in the past couple of trading sessions. Overall, weakness has crept in and the wait for a new all-time high gets longer. We would still await further validations on the price to change the trend. In terms of levels, 18650 - 18600 shall act as a crucial support zone while 18880 - 18900 shall act as a crucial resistance zone, said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.

As far as Bank Nifty is concerned, the 20-day moving average of 43976 acted as a stiff resistance and the index was unable to surpass it. The Bank Nifty is still stuck in a range and until the zone of 44000 - 43500 is not decisively breached on either side the range-bound action is likely to continue, said Jatin Gedia.

Stocks To Buy This Week

Here are the stocks that the Technical & Derivatives team, Broking & Distribution, Motilal Oswal Financial Services Ltd., recommended to buy this week.

HDFC Bank

BUY HDFC BANK CMP 1643 SL 1610 TRGT 1700

HDFC Bank has formed a strong base near 1610 zones and negated the formation of lower highs after seven weeks. It is respecting the rising trend line and forming a Hammer candle on a weekly scale which is a Bullish reversal pattern. On a daily scale it managed to surpass above its 50 DEMA and holding well above the same. Thus recommending to buy the stock with keeping stop loss below 1610 for a target towards 1700 zones.

Bharti Airtel

BUY BHARTI AIRTEL CMP 854 SL 834 TRGT 900

Bharti Airtel has given a range breakout on daily scale after twelve sessions and structure of higher lows is intact on weekly scale as supports are gradually shifting higher. It is also respecting its 20 DEMA on daily scale and formed a strong bullish candle. Thus looking at the current chart structure we recommend to buy the stock with keeping stop low below 834 for an upside target towards new life high of 900 levels.

Trent

BUY TRENT CMP 1725 SL 1675 TRGT 1825

Trent is in an overall uptrend and forming higher highs - higher lows on a weekly scale from the past eight weeks. On a daily scale it is on the verge of a Pole & Flag breakout and gave the highest daily close ever. RSI is also turning northward which suggests momentum is likely to continue in the coming session to scale new record highs. Thus recommending to buy the stock with keeping stop loss below 1675 for an upside move towards new high territory towards 1825 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.