Weekly Trading Guide: 3 Technical Stock Picks By Motilal Oswal To Trade This Week

On October 23, despite sluggish trading in the Asian market, Indian indices opened in a flat manner. The Nifty dropped 3.80 points or 0.02 per cent to open at 19,538.90, while the Sensex gained 3.68 points, or 0.01 per cent to open at 65,401.30.

The US GDP statistics will be closely watched by market investors for clues about the Fed's interest rate trajectory, and the ongoing earnings season will also be closely watched. Here are the top stocks to buy this week as recommended by the Technical & Derivatives Team, Broking & Distribution, Motilal Oswal Financial Services Ltd.

Colgate-Palmolive (India)

BUY COLGATE AT CMP of Rs 2110, STOP-LOSS: Rs 2040, TARGET: Rs 2350

Colgate is in an overall uptrend and gave a box breakout on weekly scale after thirteen weeks and formed a strong bullish candle. On a daily scale, it has given consolidation breakout above 2085 zones and given the highest daily close. The stock is holding well above its short-term moving averages and base of the stock is shifting higher. Momentum indicator (RSI) is also moving northward on a weekly scale which suggests momentum to continue in coming sessions. The stock has been an outperformer within the FMCG sector and looking at the overall chart set up we recommend to buy the stock with a stop loss below 2040 levels on a closing basis for a new upside target towards the 2350 zones.

Persistent Systems

BUY PERSISTENT AT CMP of Rs 5907, STOP-LOSS: Rs 5700, TARGET: Rs 6300

Persistent is trading near lifetime high territory and forming higher lows on a monthly scale from the past three months. On a weekly scale, it negated the formation of lower highs after five weeks with a strong bullish candle. On a daily scale, the stock gave a falling channel breakout with a good surge in volumes. It is holding well above its 50 DEMA and RSI is turning upward which suggests momentum to continue going ahead. The stock has been a strong outperformer within the Midcap IT space and it is likely to scale new record highs. Thus, looking at the overall chart structure recommending to buy the stock with keeping stop loss below 5700 levels on a closing basis for a target towards 6300 zones.

Muthoot Finance

BUY MUTHOOT FINANCE AT CMP of Rs 1271, STOP-LOSS: Rs 1222, TARGET: Rs 1400

Muthoot Finance has retested the breakout on a weekly scale and negated the formation of lower highs - lower lows after four weeks. On a daily scale, the stock gave a consolidation breakout after seven sessions above 1250 zones and managed to surpass its 50DEMA. Momentum oscillator (RSI) is also on the verge of breakout on weekly scale which implies bullish implication. Thus, recommending to buy the stock while keeping the stop loss below 1222 on a closing basis for an upside target towards 1400 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.