Top Stocks to Buy: Weekly Recommendations and Market Insights
Stock Market Recommendations
Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, suggests Chennai Petroleum Corporation and KPR Mill as top stock picks for the upcoming week. Here’s his view on Nifty, Bank Nifty, and these top stock picks with a 3-month horizon:
Index View: Nifty
The Nifty index ended the week with little change. It moved within a tight range of just 338 points, the narrowest weekly range since February 2023. This shows a lack of conviction among market participants. The index is struggling to find new triggers for a directional move.
The Nifty Midcap 100 index showed similar behavior. It had a range of only 606 points, its lowest weekly movement since November 2023. The Nifty Smallcap 100 was even more muted, confined to a tight 257-point range, the lowest weekly range since July 2023.
Such compressed trading ranges across large-cap, mid-cap, and small-cap spaces show market indecision and consolidation. This environment can be frustrating for intraday and short-term traders. Volatility is low, and price moves are shallow. Identifying tradable setups becomes challenging. Opportunities to ride quick momentum are scarce, and whipsaws are more common.
Despite this sluggishness, the broader trend still leans bullish. The Nifty continues to trade above its key short and long-term moving averages. This keeps the structural uptrend intact. However, momentum indicators are starting to flash warning signs. The daily RSI has slipped below the 60 mark and is heading lower, hinting at fading strength. The Fast Stochastic is now below the Slow line, indicating possible short-term weakness.
Adding to the caution, the MACD histogram has been on a declining path for the past four sessions. This suggests that momentum is cooling off. While the longer-term trend is still intact, the market is currently in a low-energy zone. It’s hard to trade and even harder to predict. Traders may be better off adopting a wait-and-watch approach until the next breakout or breakdown provides clarity.
Key levels to watch:
- Immediate support: 20-day EMA zone of 25250-25200
- Crucial hurdle: Zone of 25600-25650
Bank Nifty View
The Bank Nifty reached a fresh all-time high during Wednesday’s session. However, the euphoria was short-lived as the index witnessed a mild pullback later in the week. It settled above the 57000 mark, registering a weekly loss of 0.72%, and formed a bearish candle with a minor lower shadow.
Despite this short-term pullback, the broader trend remains bullish. The index is comfortably trading above its key short and long-term moving averages. Key levels to watch:
- Immediate support: 20-day EMA zone of 56600-56500
- Potential targets: 57500, followed by 58200 in the short term
Stock Recommendations
Chennai Petroleum Corporation
| CMP | Accumulation Zone | Target | Stop Loss | Return (%) | Time Period |
|---|---|---|---|---|---|
| 771.15 | 775-765 | 855 | 730 | 11% | 3 Months |
Chennai Petroleum Corporation stock has broken out above a horizontal trendline on the daily chart. This breakout is backed by strong volumes, confirming the strength of the move. The stock formed a sizable bullish candle on the breakout day, further validating bullish intent. It is currently trading well above its short and long-term moving averages, reflecting a strong underlying trend.
Momentum indicators are aligned with the price action, pointing to sustained bullish momentum. We recommend accumulating the stock in the zone of 775-765 with a stop loss of Rs 730. On the upside, it is likely to test the level of 855 in the short term.
KPR Mill
| CMP | Accumulation Zone | Target | Stop Loss | Return (%) | Time Period |
|---|---|---|---|---|---|
| 1189.6 | 1190-1180 | 1330 | 1140 | 12% | 3 Months |
KPR Mill stock marked a high of 1389 on May 09 and then saw a correction. This correction halted near its 50-day EMA level. The stock has formed a strong base near its 50-day EMA level and has resumed its upward journey. On Friday, it broke out above a horizontal trendline on the daily scale with robust volume.
The daily RSI surged above the 60 mark for the first time since May 2024 and is rising. We recommend accumulating the stock in the zone of 1190-1180 with a stop loss of Rs 1140. On the upside, it is likely to test the level of 1330 in the short term.
Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India.
