Weekly picks: From Sun Pharma to TVS Motor - MOFSL recommends three stocks to buy this week

Indian stock market: On Tuesday, Indian stock market benchmarks—the Sensex and Nifty 50—continued to decline for the third consecutive session as investors stayed cautious due to ongoing worries about a potential economic slowdown in the US, geopolitical tensions in the Middle East, and high market valuations.

The Sensex began the day at 78,981.97, up from its previous close of 78,759.40, and surged by over one percent to reach 79,852.08 during the session. Conversely, the Nifty 50 opened at 24,189.85, compared to its prior close of 24,055.60, and increased by more than one percent to hit 24,382.60.

“Nifty after opening gap up, witnessed a gradual decline on account of weak global cues and closed with a loss of 63 points at 23993 levels. Majority of the sector ended in the red. Buying was seen in Realty, IT, Metal, and FMCG. While we saw some relief in the morning, global concern continued to put pressure on the domestic market with the Nifty closing below 24k levels. In the near term, we expect the market to consolidate and remain under pressure until the global volatility subsidies. The ongoing result season and RBI monetary policy this week will further add to the volatility,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Brokerage firm Motilal Oswal has suggested three stocks to buy this week with decent upside move - Sun Pharma, Bharat Petroleum Corporation (BPCL), and TVS Motor.

Stocks to buy

Sun Pharma: Buy at ₹1731 | Target Price: ₹1850 | Stop Loss: ₹1670

Sun pharma is trading at life time high territory and strong momentum is seen across Pharma stocks. Technically the stock is forming higher highs on monthly scale and gave a range breakout on weekly scale. On daily scale the stock is all set to give new consolidation breakout after five sessions and gave highest daily close. Momentum indicator RSI is also giving moving higher which indicates momentum to pick up in coming sessions. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 1670 levels on closing basis for a new life time high target towards 1850 zones.

BPCL: Buy at ₹347 | Target Price: ₹400 | Stop Loss: ₹330

The stock is in overall uptrend and holding gains at higher zones. It has given range breakout of past sixteen weeks and formed a strong bullish candle on weekly chart. On daily it retested the previous breakout zone and closed on as strong note in spite of market volatility. Momentum indicator RSI is positively placed which will support the move towards higher levels. Thus looking at the overall price structure, we are expecting the stock to inch higher towards 400 zones with keeping stop loss below 330 zones on closing basis.

TVS Motor: Buy at ₹2569 | Target Price: ₹2750 | Stop Loss: ₹2470

TVS Motor is in overall uptrend and gave channel breakout after six weeks. It formed a strong bullish candle with highest ever weekly close. On daily scale as well it is holding well above its short term moving averages and good buying interest is visible across Auto stocks. Momentum indicator RSI is also giving positive crossover which indicates momentum to pick up in coming sessions. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 2470 levels on closing basis for a new life time high target towards 2750 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.