Weekly Trading Guide: 3 Top Technical Stock Picks By Motilal Oswal

Earlier this week, on August 18, the Sensex and Nifty 50 fell, with the Realty, IT, and healthcare indices bearing the brunt of the fall amid a pessimistic global trend and FIIs outflow. The 30-share BSE Sensex dropped 202.36 points, or 0.31%, to 64,948.66 and on Friday, the Nifty 50 fell 55.1 points, or 0.28%, to close at 19,310. Earlier this week, on August 18, the Sensex and Nifty 50 fell, with the Realty, IT, and healthcare indices bearing the brunt of the fall amid a pessimistic global trend and FIIs outflow.

The 30-share BSE Sensex dropped 202.36 points, or 0.31%, to 64,948.66 and on Friday, the Nifty 50 fell 55.1 points, or 0.28%, to close at 19,310. The BSE Sensex fell 374 points, or 0.57 percent, to 64,949 in the previous week, while the Nifty fell 118 points, or 0.61 per cent, to 19,310. During the previous week, the BSE Metal index fell the highest by 3.9%. The BSE Oil & Gas and BSE Bankex indices have fallen by 1.3 percent and 0.8 per cent, respectively. In the midst of the Indian market's vulnerability owing to negative global and domestic cues, here are three technical stock recommendations proposed for buying by Technical & Derivatives Team, Broking & Distribution, Motilal Oswal Financial Services Ltd.

ACC Cement

BUY ACC At CMP of Rs 1934, Stop-loss: Rs 1870, Target: Rs 2060

ACC has retested its previous breakout zone on a daily scale and formed a strong bullish candle with noticeable volumes. It has also negated lower highs structure after nine sessions and taking multiple support near its 50DEMA. RSI is on the verge of positive crossover on a daily scale which suggests momentum to pick up in coming sessions. Good buying interest is visible in cement space and thus recommending to buy the stock with keeping the stop loss below 1870 levels for an upside target towards 2060 zones

Colgate

BUY COLGATE At CMP of Rs 1996, Stop-loss: Rs 1945, Target: Rs 2100

Colgate is in a strong uptrend on a monthly scale and formed a bullish candle on the weekly scale which suggests bulls are holding it strong. On a daily scale, the stock is consolidating at lifetime highs and holding its gains in spite of market weakness. It is holding well above its 20DEMA and small follow-up buying could take the stock to new life-high territory. Thus recommending to buy the stock with keeping the stop loss below 1945 for an upside move towards 2100 levels.

Max Financial Services

BUY MAX FINANCIAL At CMP of Rs 871, Stop-loss: Rs 840, Target: Rs 930

Max Financial is on the verge of a trend line breakout on the weekly scale and formed a strong bullish candle. It has given the highest weekly close after twenty-nine weeks and trading well above its short-term moving averages on a daily scale. The relative strength Index is also holding well above 65 zones on the weekly scale which suggests strength in the stock. Thus recommending to buy the stock with keeping the stop loss below 840 for an upside move towards 930 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.