Top Stock Picks for the Week: HDFC AMC and IndusInd Bank Among Favorable Choices

Despite some banking sector sell-offs, Nifty 50 wrapped up the week with modest gains. Market sentiment on Dalal Street is anticipated to remain positive as long as Nifty 50 holds above the crucial support level of 19,500, with put writers expected to provide support at this level. Resistance levels are seen around 19,750-19,800. Given this outlook, a strategy of buying on dips is considered favorable as long as the index remains above 19,500.

On the other hand, the Bank Nifty faced challenges in regaining ground above the ascending trendline on the daily chart, signaling a bearish trend in the banking sector. Moreover, the index has consistently remained below important moving averages, reinforcing this bearish trend. Looking ahead, a significant breakthrough above 44,550 could potentially drive the index towards 45,000 and beyond, while support is situated at 44,200.

Recommended Stocks to Buy:

1. DLF: Buy at Current Market Price (CMP) of ₹548, Target Price: ₹600, Stop Loss: ₹524
   
   DLF is among the top stock picks for the upcoming week as it has broken out of its recent consolidation pattern. Additionally, it has consistently maintained levels above its crucial moving average. The daily Relative Strength Index (RSI) displays a bullish crossover, indicating a likely short-term uptrend.
   
2. HDFC AMC: Buy at CMP of ₹2,730, Target Price: ₹3,000, Stop Loss: ₹2,600
   
   HDFC AMC is another stock to consider for the week, having experienced a breakout from consolidation on the daily timeframe, signaling increased positive sentiment. The stock has gained momentum after establishing a base around its previous congestion level. Furthermore, it has consistently traded above important moving averages, making it well-positioned for the short term.
   
3. IndusInd Bank: Buy at CMP of ₹1,433, Target Price: ₹1,520, Stop Loss: ₹1,380
   
   IndusInd Bank is also among the recommended stocks for the upcoming week, having broken out of consolidation on the daily timeframe, indicating a rise in positive sentiment. The stock has gained ground after finding support around previous swing lows. Additionally, its RSI is exhibiting a bullish crossover, suggesting positive momentum.

Rupak De, Senior Technical Analyst at LKP Securities, shared these insights.