In the midst of current market volatility, investors are seeking reliable stock recommendations to navigate the turbulent waters of the Indian stock market. Brokerage firm Motilal Oswal has highlighted three stocks—ABB, Exide Industries, and Glenmark Pharma—as strong buy candidates this week. With the Sensex and Nifty 50 facing pitfalls due to adverse global signals, these stocks offer notable upside potential for savvy investors looking to capitalize on market opportunities.
Market Overview
As of October 16, 2024, the Indian stock market is witnessing a downward trend. The Sensex experienced a decline of 319 points (0.39%) to close at 81,501.36, while the Nifty 50 fell 86 points (0.34%) to settle at 24,971.30. The Nifty index dipped below the 25,000 mark and displayed sideways movement during the trading session. The majority of sectors ended negatively, although Oil & Gas, Realty, and Financials showed resilience. This market consolidation is primarily due to persistent selling from Foreign Institutional Investors (FIIs), who have withdrawn approximately ₹63,875 crores in October alone.
Stock Recommendations
ABB Share
Motilal Oswal recommends purchasing ABB at a price of ₹8,553, with a target price of ₹9,200 and a stop loss established at ₹8,200. After twelve weeks of consolidation, the stock has shown a range breakout on a weekly scale, indicating bullish momentum with higher lows being formed. The RSI (Relative Strength Index) also points towards continuing upward momentum, signaling strong buying interest from investors.
Exide Industries Share
Exide Industries is recommended for purchase at ₹530, with an upward target of ₹575 and a stop loss at ₹505. This stock has solidified a base near the ₹500 level and recently broke out from its consolidation phase, showing resilience despite fluctuations in the market. It continues to trade above its 50-day exponential moving average, indicating underlying strength.
Glenmark Pharma Share
Finally, Glenmark Pharma is suggested for buying at ₹1,790, with a target of ₹1,950 and a stop loss at ₹1,720. The stock is approaching its lifetime highs and has achieved a channel breakout on a weekly basis after seven weeks of trading. The pharmaceutical sector is experiencing robust buying interest, positioning Glenmark for potential outperformance in the upcoming weeks.
Conclusion
While the market landscape remains challenging, the stocks advised by Motilal Oswal—ABB, Exide Industries, and Glenmark Pharma—provide investors with viable opportunities to capitalize on potential upside. Investors are encouraged to conduct thorough research or consult with a financial advisor before making investment decisions. Disclaimer: This article is intended for informational purposes only and should not be considered as financial advice.
FAQs
What is the current state of the Indian stock market?
The Indian stock market is undergoing a period of volatility, with the Sensex and Nifty both experiencing declines due to weak global cues and selling pressure from Foreign Institutional Investors.
Which stocks are recommended for investment this week?
Motilal Oswal recommends ABB, Exide Industries, and Glenmark Pharma as strong buy candidates due to their potential for upside in the current market conditions.
What should investors consider before buying stocks?
Investors should conduct their own research, analyze market conditions, and consider consulting financial advisors before making any investment decisions.