Weekly Stock Picks: Motilal Oswal’s Recommendations for This Week

Indian stock market saw gains for the second day in a row on Monday. This increase was due to positive global signals and reduced concerns about tensions in West Asia.

The Sensex started trading at 73,666.51 and ended the day at 73,648.62, gaining 560 points or 0.77 percent. The Nifty 50 began at 22,336.90 and closed at 22,336.40, rising by 189 points or 0.86 percent.

According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, positive global cues, easing tensions in the Middle East, unchanged lending rates in China, and lower oil prices contributed to the market’s positive sentiment. Additionally, expectations of a normal monsoon and higher than expected direct tax collections boosted market sentiment.

Motilal Oswal has recommended three stocks for this week:

1. Hindustan Aeronautics (HAL): Buy at ₹3751 | Target price: ₹3600 | Stop Loss: ₹4050

HAL’s stock is in an uptrend, forming higher lows for several months. It recently broke out of consolidation and is supported by strong volume. The momentum indicator RSI suggests further upside, making it a buy with a stop loss at ₹3600 for a target of ₹4050.

2. Trent: Buy at ₹4158 | Target price: ₹3950 | Stop Loss: ₹4500

Trent is in a strong uptrend and is on the verge of a breakout on the weekly chart. It has consistently held its 20DEMA and shows signs of positive momentum. The RSI is also indicating an uptick, making it a buy with a stop loss at ₹3950 for a target of ₹4500.

3. Escorts: Buy at ₹3106 | Target price: ₹2970 | Stop Loss: ₹3400

Escorts has seen a recovery from lower levels and formed a bullish candle on the monthly chart. It broke out of a falling supply trend line and is trading above its short-term moving averages. The risk-reward ratio is favorable, and the RSI suggests continued momentum. It’s a buy with a stop loss at ₹2970 for a target of ₹3400.