Top 3 Stock Picks for August 9: Alkem Labs, HDFC Bank, and ABB Ready for a Strong Upsurge, Says Expert

On August 8, the Indian stock market saw a decline, with the Nifty 50 dropping by 181 points to close at 24,117, and the Sensex falling by 582 points to settle at 78,886.22. Despite the downturn, mid and small-cap indices performed slightly better than the main benchmarks.

Chandan Taparia, Head of Equity Derivatives and Technicals at MOFSL, observed that the Nifty index had a volatile day, starting in the red, recovering slightly, and then dropping again. He noted that for the market to see an upward move, the Nifty needs to hold above 24,200, with potential targets at 24,350 and 24,500. On the downside, support is expected around 23,950 and 23,800.

The Bank Nifty index also had a choppy session, fluctuating within a 400-point range. Taparia pointed out that as long as the index stays below 50,350, it might face some weakness, with support at 49,750 and 49,500, while resistance could be seen at 50,500 and 50,750.

Taparia has recommended three stocks to watch on August 9:

1. Alkem Laboratories Ltd: Buy at ₹5,687, with a target of ₹6,000 and a stop loss at ₹5,500. Alkem has shown strong performance, breaking out of its previous range with high volumes. The Pharma sector’s strength may continue to support this stock.
   
2. HDFC Bank: Buy at ₹1,642, with a target of ₹1,750 and a stop loss at ₹1,600. HDFC Bank has found strong support around the ₹1,590-1,600 range, and technical indicators suggest an upward trend.
   
3. ABB India: Buy at ₹7,942, with a target of ₹8,300 and a stop loss at ₹7,700. ABB is in a strong uptrend, taking support around the ₹7,600 level, and technical indicators point to continued buying interest.