Top stock picks, July 31: PI Industries, Grasim; check target, stop-loss

Grasim Industries has negated lower highs-lower lows after four weeks and has pulled back higher from its 100 DEMA support.

Motilal Oswal Financial Services stock recommendation:

Buy PI Industries | CMP: ₹4,324 | Stop-loss:₹4,200 | Target:₹1,370

The stock has given a range breakout on the daily chart and has managed to close above the same. It has formed a strong bullish candle and the support base is shifting higher. The breakout is supported by noticeable volumes which has bullish implications. MACD indicator is also positively placed.

Buy HDFC Asset Management Company | CMP: ₹5,670 | Stop-loss:₹5,500 | Target:₹6,000

The stock is in an overall uptrend and has recently shown relative outperformance in markets corrective phase. It has given a consolidation breakout on daily chart and highest daily close ever. It is perfectly respecting 20 DEMA and ADX line is rising which confirms the strength of the uptrend.

Buy Grasim Industries | CMP: ₹2,759 | Stop-loss:₹2,680 | Target:₹2,900

The stock has negated lower highs-lower lows after four weeks and has pulled back higher from its 100 DEMA support. It has given a falling supply trend line breakout on daily scale. Momentum indicator RSI is also positively placed.

(Disclaimer: Ruchit Jain is head of equity technical research, wealth management at Motilal Oswal Financial Services Ltd. Views expressed are his own.)