Stock picks: From Trent to Torrent Pharma Motilal Oswal suggests these shares to buy this week

The Sensex commenced trading 191 points higher at 76,680.90 compared to its previous close of 76,490.08. It surged around 370 points to reach an intraday peak of 76,860.53. However, succumbing to profit booking towards the end of the session, the index ended 33 points, or 0.04 per cent, lower at 76,456.59.

Also read: Stocks to buy: Axis Bank, Dr Lal Pathlabs among top four stock picks by SMC Global Securities for this week

Similarly, the Nifty 50 began at 23,283.75, in contrast to its previous close of 23,259.20, and reached an intraday high of 23,389.45. Ultimately, the index closed 6 points, or 0.02 per cent, higher at 23,264.85.

“Nifty ended flat at 23,264 levels despite staying positive most of the day. The broader market, on the other hand, ended with gains of 0.6%-0.8%. Sectorally, it was a mixed bag with oil & gas and realty gaining more than 1%. India’s VIX cooled by 10%, closing at a one-month low below the 16 level, attributed to a reduced political overhang. Overall, investors’ confidence got a boost after the key cabinet portfolios were retained with the BJP, leading to notable activity in PSU stocks. However, given the absence of any fresh trigger, the market seems to be in consolidation mode. Globally, investors are cautiously awaiting US CPI data and US Fed policy outcome, which will be released tomorrow. US Fed commentary could provide direction to the market. So far, investors are baking in one rate cut towards the end of the year, so any deviation from that could drive the market on either side,” said Siddhartha Khemka, Head – of retail Research, Motilal Oswal Financial Services Ltd.

Motilal Oswal recommends buying Balkrishna Industries Ltd, Trent, and Torrent Pharma shares this week.

Stocks to buy

Balkrishna Industries Ltd: Buy at ₹3201 | Target price: ₹3440 | Stop Loss: ₹3,080

Balkrishna Ind is in an overall uptrend and gave a massive range breakout on the monthly scale after thirty-three months. On a weekly scale, the stock retested the previous support zones and formed a bullish candle with along the lower shadow, as strong buying was seen from lower zones. On a daily scale, the stock gave a trend line breakout after thirteen sessions and formed a strong bullish candle. Momentum indicator Relative Strength Index (RSI) is on the verge of positive crossover, indicating momentum to pick up in coming sessions. Thus, looking at the overall chart structure, we are recommending buying the stock while keeping stop loss below 3,080 levels on an a closing basis for a new high target towards 3,440 zone.

Also read: JM Financial anticipates Trent, BEL to join Nifty50 in August indices rebalancing

Trent: Buy at ₹4,964 | Target price: ₹5,250 | Stop Loss: ₹4,800

Trent is on a solid uptrend and trading at lifetime-high territory. On the monthly scale, the structure of higher highs–higher lows is intact, while on the weekly scale, it formed a bullish candle with a lower shadow as buying was seen at lower zones. On a daily scale, the stock also showed a range breakout with the highest daily close ever. The stock has been a massive outperformer within the retail sector and is holding well above its 20DEestMA. Thus, looking at the overall chart structure, we recommend buying the stock with a stop loss below 4,800 levels on an a closing basis for a new high target towards 5,250 zone.

Torrent Pharma: Buy at ₹2844 | Target price: ₹3,100 | Stop Loss: ₹2,720

After fifteen weeks, the Pharma Index gave a range breakout on the weekly scale and formed a strong bullish candle. Within the index, Torrent Pharma is seeing a strong uptrend and showed a range breakout on the monthly scale after four months. On a daily scale, the stock also gave channel breakout and managed to close above 2,800 zone. The stock is well above its 50DEMA and will likely scale new record highs. Thus, looking at the overall chart structure, we are recommending buying the stock while keeping the stop loss below 2,720 levels on a closing basis for a new lifetime high target towards 3,100 zone.

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Published: 12 Jun 2024, 06:02 AM IST