Brokerage firm Motilal Oswal has identified three promising stocks—HDFC Asset Management Company (AMC), State Bank of India (SBI), and National Aluminium Company (Nalco)—as strong buy recommendations for this week. As the Indian stock market faces increased volatility, these stocks are considered to have decent upside potential for investors seeking opportunities.
Market Overview
On October 22, 2024, Indian stock market benchmarks experienced a significant decline, with the Sensex dropping by 931 points or 1.15%, closing at 80,220.72, while the Nifty 50 fell by 309 points or 1.25%, finishing at 24,472.10. The mid and small-cap sectors faced even steeper declines, with the BSE Midcap index down by 2.52% and the Smallcap index plummeting by 3.81%.
→ The volatility index, INDIA VIX, rose by 4.21%, indicating increased market volatility. Analysts suggest that if the Nifty sustains below 24,440, it could drift toward levels of 24,200-24,000.
Stock Recommendations
HDFC AMC: Buy at ₹4,709
Motilal Oswal recommends buying HDFC AMC at ₹4,709 with a target price of ₹5,100 and a stop loss set at ₹4,500. The stock is currently in a strong uptrend and trading near its lifetime highs. It has shown a consolidation breakout on a weekly scale after seven weeks and formed a robust bullish candle with noticeable volumes.
→ The stock has successfully retested its previous breakout zone and is respecting its 20-week exponential moving average (20WEMA), indicating strong buying interest in the asset management space.
State Bank of India: Buy at ₹820
For State Bank of India (SBI), the recommendation is to buy at ₹820 with a target price of ₹880 and a stop loss of ₹790. SBI has formed a robust base near the ₹800 mark and achieved a consolidation breakout on a weekly scale after five weeks.
→ The stock has demonstrated resilience in the banking sector despite overall market volatility. A double bottom price pattern indicates bullish reversal potential.
National Aluminium Company: Buy at ₹232
Motilal Oswal also recommends buying National Aluminium Company (Nalco) at ₹232 with a target price of ₹260 and a stop loss of ₹218. The stock is trading near its lifetime highs and has shown strong performance within the metal sector.
→ Nalco has achieved a range breakout on a monthly scale after six months and formed higher lows over several weeks. The rising MACD indicator further confirms upward momentum.
Conclusion
As the Indian stock market grapples with volatility, these three stocks—HDFC AMC, SBI, and National Aluminium—present opportunities for investors looking for potential upside in their portfolios. With strong technical indicators and favorable market conditions for these companies, they are positioned well for short-term gains.
Final Thoughts
Investors are advised to conduct their own research or consult financial advisors before making any investment decisions. Market conditions can change rapidly, impacting stock performance significantly.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or brokerage firms. Always consult with certified experts before making any investment decisions as individual circumstances may vary.
