Weekly Trading Guide: 3 Stock Recommendations By Motilal Oswal To Buy

The NSE Nifty index ended the week on Friday 165 points lower at 19,331 levels while the BSE Sensex dropped 505 points to close at 65,280 levels. Bank Nifty ended at 44,925 levels, down 414 points. In the broad market, the BSE mid-cap index fell 0.76 per cent and the small-cap index was down 0.28 per cent. The Sensex and Nifty had weekly gains of 0.17% and 0.25%, respectively. These gains in the Indian stock market came after the continuation of the wave of FPI inflows into India, which reached Rs 21943 crores by 8th July.

Market Outlook

Commenting on the outlook of Nifty, Rupak De, Senior Technical analyst at LKP Securities said "The Nifty experienced a significant decline after failing to maintain its position above 19500. This drop led to the index falling below the 21EMA on the hourly chart, indicating an increasing bearish sentiment in the market. Furthermore, the hourly RSI has shown a bearish crossover, adding to the negative outlook. The immediate support level is identified at 19300, while the resistance level remains at 19500."

Kunal Shah, Senior Technical & Derivative analyst at LKP Securities believes that "The Bank Nifty index experienced selling pressure from the bears, leading to a correction throughout the day. This upper-end movement by the bears suggests a potential reversal in the trend. The hurdle for the index is currently at 44500, where aggressive fresh call writing is observed. This level is expected to act as a resistance for further upside movement. The index broke below the support level of 45000, indicating a shift in the trend. However, follow-up action is required to confirm and sustain the downward momentum. If the index manages to sustain below 45000 on a closing basis, it is likely to continue its downward momentum towards the levels of 44500 and 44200."

Stocks To Buy This Week

Here are the stock recommendations with buy calls shared by the technical & derivatives team, Broking & Distribution, Motilal Oswal Financial Services Ltd.

Tata Motors

BUY TATA MOTOR CMP Rs 618, stop loss Rs 595, target price Rs 666

Tata motor is in overall uptrend and forming higher highs - higher lows on monthly scale from the past four months. On a weekly scale the stock has given consolidation breakout after three weeks and formed a strong bullish candle. On daily scale as well, it is holding well above its 20 DEMA and gave the highest close ever with noticeable volumes. Thus, recommending to buy the stock with keeping stop loss below 595 levels for an upside target towards new life highs of 666 zones.

DLF

BUY DLF CMP Rs 503, stop loss Rs 485, target price Rs 545

DLF has given Pole & Flag breakout on monthly scale which is a bullish continuation pattern and uptrend is intact to close near its multi-year highs. On a weekly scale it has given a range breakout after six weeks and formed a Bullish candle. On daily scale it managed to close above its previous resistance of 495 zones and stock is all set to move northwards. RSI is also turning upward which suggests momentum is likely to continue in coming sessions. Thus, looking at the current chart structure we recommend to buy the stock with keeping stop low below 485 for an upside target towards 545 levels.

Canara Bank

BUY CANARA BANK CMP Rs 333, stop loss Rs 318, target price Rs 360

Canara Bank has given a falling supply trend line breakout on the weekly chart and closed with a strong bullish candle. On a daily scale the stock has retested its previous zones and gave the highest weekly close after thirty-one weeks. Strong buying interest is seen in the entire PSU space and stock is likely to outperform in coming sessions. Thus, recommending to buy the stock with keeping stop loss below 318 for an upside move towards new high territory towards 360 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.