Weekly picks: Persistent to Hind Petro - Motilal Oswal recommends three stocks to buy

Indian stock market: On Tuesday, the key indices - Sensex and the Nifty 50, ended the day flat. The Sensex began at 82,652.69, compared to the previous close of 82,559.84. It fluctuated within a narrow range of approximately 274 points and ultimately closed 4 points lower at 82,555.44.

“The Nifty started the day with a gap-up but was unable to sustain higher levels, resulting in profit booking. However, despite this profit-taking, the index managed to close the day on a flat note at 25,280 levels. Technically, on the daily chart, the index formed a small red candle but is still holding well above the breakout of a rounding bottom pattern, indicating strength. On the downside, the 9-Day Exponential Moving Average (DEMA) and the recent breakout point of the rounding bottom pattern are positioned near 25,070. Thus, any dip around 25,070 should be used to buy Nifty. On the upside, the index may test levels of 25,500-25,600 in the near future," said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.

Bank Nifty

On the Bank Nifty outlook, Yedve added, "The Bank Nifty began the day on a strong note but encountered profit booking in the first half. However, the index witnessed strong buying interest in the second half and settled the day positively at 51,689 levels. Technically, on the daily chart, the index formed a green candle with a long lower shadow, indicating strength. On the downside, the 21-Day Exponential Moving Average (DEMA) is near 51,060 levels. As long as the index remains above 51,060, a 'buy on dips' strategy is recommended. On the upside, the Banknifty might attempt to test the levels of 52000, which correspond to the double bottom pattern target.”

Brokerage firm Motilal Oswal has suggested three stocks - Persistent, ICICI Prudential Life and Hindustan Petroleum Corp - to buy this week with a decent upside move.

Stocks to buy

Persistent: Buy at ₹5,710 | Target Price: ₹5,600 | Stop Loss: ₹4,950

The stock is in overall uptrend and holding gains at higher zones. It has given range breakout of past seven weeks and formed a strong bullish candle on weekly chart. The ADX Indicator has turned up on the daily and weekly scale indicating the up move has strength. Strong buying is visible across IT stocks and it is likely to outperform in coming sessions. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 4950 levels on closing basis for a new life time high target towards 5600 zones.

Hindu: Buy at ₹5,710 | Target Price: ₹5,600 | Stop Loss: ₹4,950

The stock is on the verge of giving pole and flag breakout on weekly scale after six weeks and gave highest weekly close. On daily scale it is perfectly respecting 20 DEMA and base of the stock is shifting higher. Strong buying is visible across Insurance space which may take the prices higher. Momentum indicator RSI is positively placed which will support the up move. Overall price structure is bullish which could take the stock to fresh life time highs and we are recommending to buy the stock with keeping stop loss below 715 levels on closing basis for a new life time high target towards 820 zones.

Hindustan Petroleum Corp: Buy at ₹416 | Target Price: ₹455 | Stop Loss: ₹395

Hind Petro 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 twenty eight weeks and formed a strong bullish candle. On daily scale as well it is forming higher lows from past few sessions and gave highest daily close. Momentum indicator RSI also moving higher which suggest momentum to continue in coming sessions. Good buying interest is seen in OMCs and stock likely to outperform. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 395 levels on closing basis for a new life time high target towards 455 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.