Stocks To Buy This Week: 3 Technical Stock Picks By Motilal Oswal

Excessive unpredictability in the markets is expected to be caused by a variety of domestic as well as global geopolitical concerns, including quarterly profits and rising bond yields, crude oil, and the dollar index. As a result of FII sell-off pressure, the Sensex and the Nifty ended the week 2.7% down.

The 50-share NSE Nifty jumped to 19,047.25 on Friday, gaining 190 points, or 1.01 per cent. To reach 63,782.80, the benchmark BSE Sensex climbed 1.01 per cent, or 634.65 points. Amid the volatile market and ongoing Q2 earnings, the technical & derivatives team, Broking & Distribution, Motilal Oswal Financial Services Ltd have recommended 3 stocks to buy this week.

Axis Bank

BUY AXIS BANK AT CMP of Rs 1002, STOP-LOSS: Rs 960, TARGET: Rs 1080

Axis Bank is in an overall uptrend and holding well in spite of broader market weakness. On a weekly scale, it has formed a strong bullish candle which implies that decline is being bought into the stock. On a daily scale, it has formed a base near the 950-960 band and negated lower top-lower bottom formation.

The recent up move is supported by noticeable volumes which has bullish implications. The momentum indicator (RSI) is bouncing from deep oversold territory and supports are gradually shifting higher. Thus looking at the overall chart setup we recommend to buy the stock with a stop loss below 960 levels on a closing basis for an upside target towards 1080 zones.

Persistent Systems

BUY PERSISTENT AT CMP OF Rs 6084, STOP-LOSS: Rs 5850, TARGET: Rs 6550

Persistent is showing relative strength within the IT space and forming higher highs from the past three months. On a weekly scale, it has given Flag breakout which has bullish implications. On the daily chart stock has given a range breakout with noticeable volumes and holding well above the same. It is holding well above its 50 DEMA and RSI is turning upward which suggests momentum to continue going ahead. Thus looking at the overall chart structure recommending to buy the stock keeping stop loss below 5850 levels on a closing basis for an upside target towards 6550 zones.

Bajaj Auto

BUY BAJAJ AUTO AT CMP of Rs 5373, STOP-LOSS: Rs 5200, TARGET: Rs 5750

Bajaj Auto has continuously formed higher lows over the past four weeks and holding gains. It has retested the breakout on the daily chart and formed a strong bullish candle. It is perfectly respecting 20 DEMA which shows strength in the counter. Buying is visible across Auto space which may support the ongoing up move. Momentum indicator (RSI) is positively placed and supports are gradually shifting higher. Thus recommending to buy the stock keeping a stop loss below 5200 on a closing basis for an upside target towards 5750 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.