Stocks to buy: Here’s why HDFC AMC, IndusInd Bank are top picks this week
- Indian stock market: Overall, the sentiment on Dalal Street is expected to be positive as long as Nifty 50 maintains above the critical support level of 19,500, as put writers are likely to offer support at this level
Nifty 50 ended the week with modest gains despite selling in the banking sector. Overall, the sentiment on Dalal Street is expected to be positive as long as Nifty 50 maintains above the critical support level of 19,500, as put writers are likely to offer support at this level. On the upside, resistance is positioned around 19,750-19,800. A strategy of buying on dips would be favourable as long as it holds above 19,500.
Meanwhile, the Bank Nifty struggled to regain ground above the ascending trendline on the daily chart, indicating a bearish trend in the banking sector. Additionally, the index has consistently remained below crucial moving averages, further confirming this weak trend. Looking ahead, a significant breakthrough above 44,550 could potentially propel the index towards 45,000 and beyond. On the downside, support is located at 44,200.
Stocks to buy
1) Buy DLF | CMP: ₹548 | Target: ₹600 | Stop Loss: ₹524
DLF is one of the stocks to buy in the coming week as it has broken out of its recent consolidation pattern. Furthermore, it has consistently remained above its crucial moving average. The daily RSI is exhibiting a bullish crossover. In the short term, it is anticipated that the stock will continue to rise.
2) Buy HDFC AMC | CMP: ₹2,730 | Target: ₹3,000 | Stop Loss: ₹2,600
HDFC AMC is one of the stocks to buy in the coming week as it has experienced a consolidation breakout on the daily timeframe, indicating an increase in positive sentiment. The stock has risen after forming a base around its previous congestion level. Additionally, it has consistently maintained its position above crucial moving averages. The stock appears to be in good shape for the short term.
3) Buy IndusInd Bank | CMP: ₹1,433 | Target: ₹1,520 | Stop Loss: ₹1,380
IndusInd Bank is one of the stocks to buy in the coming week as it has experienced a consolidation breakout on the daily timeframe, indicating an increase in positive sentiment. The stock has risen after finding support around earlier swing lows. Additionally, its RSI is in bullish crossover, suggesting a positive momentum.
The author, Rupak De is Senior Technical analyst at LKP Securities
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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