Motilal Oswal Picks ABB, Exide, and Glenmark as Top Buys Amid Stock Market Dip—Here’s Why!

Indian stock market: On Wednesday, October 16, the Indian stock market fell for the second day in a row. The Sensex dropped by 319 points (0.39%) to 81,501.36, while the Nifty 50 closed 86 points lower (0.34%) at 24,971.30.

The Nifty index dropped below 25,000 and traded sideways for most of the session. Small-cap stocks stayed flat, while mid-caps fell by 0.3%. Apart from sectors like Oil & Gas, Realty, and Financials, all others were in the red. Consumer durable stocks, especially those linked to the White Goods sector, gained attention after the government received investment proposals worth ₹4,121 crore from 38 companies under the third phase of the PLI scheme for air conditioners and LED lights. HDFC AMC saw a strong rise due to good Q2 results, which also lifted other asset management company (AMC) stocks.

Siddhartha Khemka, Head of Research at Motilal Oswal, stated that the market is consolidating due to foreign institutional investor (FII) selling (₹63,875 crore in October so far) and weak results from big companies. He expects this trend to continue because of mixed global signals and a lack of domestic triggers. He pointed out that major companies like Infosys, Axis Bank, LTI Mindtree, Wipro, and Nestle will announce their Q2 earnings soon. Globally, investors will be watching for Europe’s interest rate decision, inflation numbers, US retail sales data, and China’s Q3 GDP report.

Motilal Oswal has recommended three stocks for this week: ABB, Exide Ind, and Glenmark Pharma. These stocks are expected to perform well.

Stocks to Buy:

• ABB: Buy at ₹8,553 | Target: ₹9,200 | Stop Loss: ₹8,200

ABB recently broke out of a 12-week range and is showing a strong bullish trend. The stock has been forming higher lows and is trading above its short-term moving averages. The momentum is strong, and analysts expect it to continue rising. Buyers are showing interest, especially in the capital sector. It’s recommended to buy with a stop loss at ₹8,200, aiming for ₹9,200.

• Exide Ind: Buy at ₹530 | Target: ₹575 | Stop Loss: ₹505

Exide Ind has built a strong base near ₹500 and recently broke out of its consolidation phase. A strong bullish candle suggests buying at lower levels. The stock has held up well despite market volatility and is above its 50-day exponential moving average (DEMA). With the stock showing strength, it’s recommended to buy with a stop loss at ₹505, targeting ₹575.

• Glenmark Pharma: Buy at ₹1,790 | Target: ₹1,950 | Stop Loss: ₹1,720

Glenmark Pharma is trading at an all-time high and has broken out of a seven-week channel. A strong bullish candle suggests more upside potential, and there’s visible buying interest in the pharma sector. It’s recommended to buy with a stop loss at ₹1,720, aiming for a new lifetime high of ₹1,950.

These stocks are expected to perform well based on technical indicators and market trends.