Stocks to buy: The Nifty 50, the benchmark index of the Indian stock market, hit a new record high of 25,129.60 on Wednesday, August 28. Despite trading with modest gains during the session, the index maintained its upward momentum, continuing the trend observed in recent days.
“Nifty failed to sustain mid day gains and closed near the flatline for the day. However, it managed to touch new all time of 25,129.60, making 25,000 a crucial support level now. Nifty IT index was the biggest gainer on the sectoral front, rising 1.64%. The IT index has now gained for three consecutive sessions on the back of Fed’s interest rate cut comments. With India VIX gaining 2%, broader markets midcap and smallcaps closed in the red. Going ahead, US & Indian GDP data and tomorrow’s montly F&O expiry will be key to monitor,” said Vikram Kasat, Head – Advisory, PL Capital – Prabhudas Lilladher.
Brokerage firm Motilal Oswal has suggested three stocks – HDFC Life, Indigo and Dixon Technology – to buy this week with a decent upside move.
HDFC Life is in strong uptrend and forming higher highs – higher lows on monthly scale. On weekly scale it gave range breakout after three weeks and formed a strong bullish candle. On daily scale as well the stock forming higher highs from last few sessions and good buying interest is visible across Insurance sector. Momentum indicator RSI is also moving higher which suggests momentum to continue in coming sessions up going ahead and stock holding well above its short term moving averages. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 690 levels on closing basis for a new life time high target towards 800 zones.
Indigo is trading at life time high territory and is in strong uptrend across all time frames. On weekly scale it gave strong range breakout on weekly scale after fourteen weeks and formed a strong bullish candle. On daily scale as well it is forming higher lows from past five sessions and gave highest daily close. Momentum indicator RSI also gave positive crossover on weekly scale which suggest momentum to continue in coming sessions. Good buying interest is seen in Midcap space and stock likely to outperform. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 4500 levels on closing basis for a new life time high target towards 5100 zones.
Dixon Tech is in strong uptrend and retested the previous breakout zone on daily scale. On weekly scale it formed a strong bullish candle with highest ever weekly close. It is trading above its short term moving averages and stock has been huge performer within Midcap space. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 12650 levels on closing basis for a new life time high target towards 14250 zones.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
