Weekly picks: From TVS Motor to BHEL, Motilal Oswal suggests these three stocks to buy this week

Indian stock market: On Tuesday, Indian stock market indices, including the Nifty 50 and the Sensex, reached new all-time highs. The Nifty 50 achieved a new all-time high of 24,443.60, while the Sensex reached a peak of 80,397.17 during the session. By the end of the day, the Nifty 50 closed at 24,433.20, marking an increase of 113 points or 0.46%. Meanwhile, the Sensex finished at 80,351.64, up by 391 points or 0.49%. Both indices concluded at their highest closing levels to date.

“Nifty remains positive throughout the session to close with handsome gains of 113 points at 24433 levels. Most sectors ended in green with buying seen in Auto, Consumer Durables, Pharma, and PSU Bank. PSU Banks witnessed fresh buying after the 10-Year bond yield fell to a 3-month low. After consolidating in the last few days, markets bounced back to make fresh high amid buying seen in index heavyweights. Markets tomorrow would react to US Fed Chair Powell's speech. Overall we expect markets to trade with a positive bias and take cues from upcoming inflation data, Q1FY25 earnings, and budget. Pharma sector is likely to remain in focus over next few days on back comfortable valuation and expectation of healthy earning growth in Q1,” Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Brokerage firm Motilal Oswal has recommended three stocks to buy - TVS Motor, ONGC and BHEL - this week with an upside potential of more than 7%.

Stocks to buy

TVS Motor: Buy at ₹2430 | Target Price: ₹2600 | Stop Loss: ₹2360

Tvs Motor is in overall uptrend and forming higher lows on monthly scale from last three months. On weekly scale the stock retested the previous breakout zone and formed a bullish candle. On daily scale the stock negated theformation of lower top - lower bottom of last fourteen sessions and formed a strong bullish candle. Momentum oscillator Relative Strength Index (RSI) is also on the verge of positive crossover which indicates momentum to pick up in coming sessions.Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 2360 levels on closing basis for a new life time high target towards 2600 zones.

ONGC: Buy at ₹288 | Target Price: ₹310 | Stop Loss: ₹278

ONGC is on the verge of Pole & Flag breakout on weekly scale after twenty weeks and formed a strong bullish candle. On daily scale as well it gave consolidation breakout above 280 zones and formed a strong bullish candle and gave highest daily close. It is taking support near its 50DEMA and momentum RSI oscillator gave bullish crossover which suggests momentum to continue in coming sessions. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 278 levels on closing basis for a new high target towards 310 zones.

BHEL: Buy at ₹316 | Target Price: ₹340 | Stop Loss: ₹303

BHEL is consolidating at higher band in between 295 to 320 zones from past nine weeks and formed a strong bullish candle on weekly scale. It is on the verge of channel breakout above 320 zones and small follow up could start the next leg of rally. Stock is trading above its short term moving averages and good buying interest is visible across PSU stocks which will support the ongoing up move. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 303 levels on closing basis for a new life time high target towards 340 zones.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.