Buy Cholamandalam Investment, SBI Life, HAL, says analyst at Motilal Oswal

Stocks to buy today: Ruchit Jain on Motilal Oswal recommends buying Cholamandalam Investment, SBI Life and HAL; here's why

Stocks to buy by Ruchit Jain of Motilal Oswal Financial Services

Buy CHOLAFIN, CMP: ₹1,698, Stop-loss: ₹1,635, Target: ₹1,800

The NBFC have witnessed a renewed buying interest in the last one month which hints at a sectoral uptrend. CHOLAFIN has given a breakout from its trendline resistance, and prices are forming a ‘Higher Top Higher Bottom’ structure. The RSI is hinting at a positive momentum on the weekly as well as the monthly charts and hence, we expect the stock to move higher in the medium term.

Buy HAL, CMP: ₹4,845, Stop-loss: ₹4,730, Target: ₹5,150

The Nifty India Defense index formed a support base around its 200 DEMA and has shown signs of a resumption of the uptrend. HAL has been a relative outperformer within the sector during the corrective phase and has now shown signs of leadership when the sector has started showing strength. The 50 DEMA is acting as a support while we expect the stock to rally higher and continue to lead the sectoral momentum.

 

Buy SBILIFE, CMP: ₹1,840, Stop-loss: ₹1,740, Target: ₹1,950

The SBILIFE has consolidated in a range since last five months and has formed a strong support base above ₹1,750. Prices have now started forming a ‘Higher Top Higher Bottom’ structure hinting at a start of an uptrend post this consolidation. The 50 DEMA is now acting as immediate support and the RSI oscillator is hinting at a positive momentum.

 

(Disclaimer: This article is by Ruchit Jain, head - equity technical research, wealth management, Motilal Oswal Financial Services. Views expressed are his own.)