Stocks to buy: HCL Tech to BPCL—Stoxbox lists top seven 'star stocks' to bet on in September; Check entry point, TP

Domestic equity benchmarks Sensex and Nifty 50 surged to record highs and registered weekly gains in the previous session, as an outsized interest rate cut by the US Federal Reserve earlier in the week strengthened investor risk appetite across global markets. The Nifty 50 index added 1.48 per cent to 25,790.95, and the S&P BSE Sensex gained 1.63 per cent to 84,544.31, logging record closing highs.

The Sensex rose above the historic 84,000 for the first time on Friday. During the day, it soared 1,509.66 points or 1.81 per cent to hit the momentous intra-day peak of 84,694.46. The NSE Nifty gauge zoomed 433.45 points or 1.70 per cent to reach an all-time intra-day peak of 25,849.25 in the previous session.

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For the week, the Nifty and Sensex gained 1.7 per cent and two per cent, respectively, posting a fifth week of gains in six. The broader, more domestically focussed small- and mid-caps rose one per cent and 1.5 per cent, respectively.  Last Thursday, the 30-share BSE benchmark hit the 83,000 level for the first time.

In the current market scenario, domestic brokerage firm Stoxbox has released its top seven stock picks for this month. The brokerage has selected the following stocks based on technical and fundamental parameters. According to the brokerage, the stocks have robust fundamentals and are well-placed to yield good returns for investors in the next one year.

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Monthly Stock Picks by Stoxbox

Let's take a look at the top four technical and fundamental stocks for September by brokerage Stoxbox:

1) ACC Cement

- StoxBox recommends buying ACC Ltd. at ₹2,490, targeting ₹2,700 with a stop loss at ₹2,400. The stock is rebounding from a demand zone and has regained key moving averages. With a 32 per cent capacity expansion and new limestone reserves, ACC is well-positioned to benefit from rising demand in housing and infrastructure.
 

2) BPCL

Bharat Petroleum Corp Ltd (BPCL) is advised to buy at ₹337, targeting ₹366 with a stop loss at ₹325. As India's second-largest oil marketing company (OMC), BPCL has a strong marketing segment despite a Q1 FY25 profit decline. With a planned ₹16,400 crore investment for expansion, it is well-positioned for future growth.
 

3) Britannia Industries

- StoxBox suggests buying Britannia at ₹6,000, with a target of ₹6,450 and a stop loss at ₹5,857. Britannia holds over one-third of the Indian biscuit market, showing a nine per cent compound annual growth rate (CAGR) over the past decade. With a robust distribution network and strong Q1 FY25 revenue growth, the stock exhibits positive price action and a bullish breakout pattern, making it a solid short-term buy.
 

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4) HCL Technologies

- The HCL technology stock is at ₹1,795, targeting ₹1940 with a stop loss at ₹1741. The company expects 3-5 per cent CC growth for FY25, with a recovery starting from Q2, driven by improved performance across verticals and geographies. Despite recent challenges, including the State Street JV divestiture, HCL Tech's strong pipeline and long-term contracts position it well for future growth. The favourable demand environment will likely reduce uncertainty over discretionary spending, enhancing its financial performance.

5) Indian Hotels Co. Ltd

- Indian Hotels Co. Ltd. (IHCL) is advised to buy at ₹684 with a short-term target of ₹740 and a stop loss of ₹661. The stock has been experiencing accumulation at elevated levels, and its RSI is well above the median, reflecting strong price momentum. IHCL shows improving relative strength compared to the Nifty 50, making it a promising short-term investment.

6) Indian Oil Corporation

- Indian Oil Corporation (IOC) has been advised to buy at ₹170, with a target of ₹183 and a stop loss at ₹164. Despite weak GRMs due to refinery shutdowns, a recent drop in crude prices is expected to drive recovery. With strong capital investments and future expansions, IOC is well-positioned for growth.
 

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7) NTPC

- StoxBox recommends purchasing the NTPC stock at the current market price of ₹407, with a target price of ₹439 and a stop loss of ₹395. NTPC is India's largest power producer and holds a significant share of its power capacity, positioning it well to benefit from increasing demand. The company plans to increase its capacity to over 130 GW by 2032 and has shown strong Q1 FY25 results, with an 11 per cent year-over-year PAT growth to ₹4,511 crore. NTPC's focus on renewable energy and low-cost debt further enhances its investment appeal.

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.