Motilal Oswal Suggests 3 Stocks to Purchase This Week, From Trent To HAL
This week, three stocks should be purchased, according to the technical and derivatives team of Motilal Oswal Financial Services Ltd., a brokerage and distribution company. Based on technical analysis, the team has assigned a buy call rating to the shares of Trent, Hindustan Aeronautics, and Escorts Kubota.
On a monthly basis, escorts have shown a significant recovery from lower zones, and after six months, they produced a powerful bullish candle that negated the development of lower lows. The stock produced a bullish candle and a falling supply trend line breakthrough above the 3040 zones on a weekly basis.
The stock is now trading above its short-term moving averages on a daily basis, and the risk-reward ratio is favorable. The Relative Strength Index (RSI), a momentum indicator, is also rising, suggesting that momentum will continue in the next few sessions. In light of the overall chart structure, it is thus advised to purchase the stock with a stop loss maintained below 2970 levels on a closing basis in order to reach the 3400 zones.
On a monthly basis, HAL has formed higher lows during the last five months and is now in an overall uptrend. The weekly close was the highest for the stock, which is establishing higher lows from the previous four weeks. The stock showed a consolidation breakthrough over 3650 zones on a daily basis, forming a robust bullish candle with a high volume increase. The stock is finding numerous supports close to its 50DEMA, and its base is moving upward. The Relative Strength Index (RSI), a momentum indicator, is also trending north, suggesting that momentum will persist in the next few sessions. With a fresh lifetime high objective of 4050 zones, the entire chart structure therefore suggests buying the stock with a stop loss kept below 3600 levels on a closing basis.
Trent is in a solid uptrend and, after nine weeks, is poised for a pole & flag breakout on the weekly chart. The stock produced the strongest daily close and a lengthy, lower shadow in the shape of a bullish candle on a daily basis. The stock has outperformed the midcap market and is precisely adhering to its 20DEMA. The Relative Strength Index (RSI), a momentum indicator, is also about to cross positive, a sign that momentum will increase in the next few sessions. Based on the overall chart structure, we thus advise buying the stock with a stop loss set below 3950 levels in order to achieve a new high objective of 4500 zones.
