Analyst Flags 3 Stocks for Gains as Nifty, Bank Nifty Consolidate
Overview
A leading analyst from Motilal Oswal has recommended buying State Bank of India, Hindalco Industries, and Indian Oil Corporation. The picks are based on technical indicators suggesting strong uptrends and bullish momentum, offering potential targets while market indices Nifty and Bank Nifty show consolidation patterns.
Motilal Oswal Financial Services analyst Chandan Taparia has identified three Indian stocks—State Bank of India, Hindalco Industries, and Indian Oil Corporation—as buy recommendations, citing strong technical indicators amid broader market consolidation. The recommendations come as key indices, Nifty and Bank Nifty, navigate support and resistance levels after volatile trading sessions.
Nifty and Bank Nifty Navigating Levels
Market sentiment showed mixed signals. The Nifty index opened with a gap up but surrendered gains throughout the day, forming a bearish candle. It found support near the 25,600 mark. Analysts see the index needing to cross and hold above 25,800 for a sustained recovery towards 26,000.
The Bank Nifty index also experienced volatility. After an initial gap-up move, it retreated from higher zones, showing selling pressure at elevated levels. It managed to hold crucial support around 59,500, with a move towards 60,000 being the next upside target.
State Bank of India (SBIN) Shows Uptrend Strength
State Bank of India shares are in a sustained uptrend, trading above their 20-day exponential moving average (DEMA). Dips have been met with buying interest, indicating strong underlying demand. The rising ADX line further confirms the increasing strength of this upward momentum, with an immediate target set at ₹1,100 against a stop-loss of ₹990.
Hindalco Industries Poised for Upside
Hindalco Industries has retested its breakout level with higher-than-average trading volumes. This suggests renewed investor confidence and a potential base for further ascent. A bullish crossover on the Relative Strength Index (RSI) indicator signals an increase in positive momentum, supporting the target of ₹1,000 with a stop-loss at ₹905.
Indian Oil Corporation Breaks Key Pattern
Indian Oil Corporation has broken out of a "Double Bottom" pattern, confirmed by a significant bullish candle on the daily chart. This technical formation often signals a reversal from a downtrend to an uptrend. The MACD indicator is also showing an upward trajectory, reinforcing positive sentiment for the stock, with a target of ₹475 and a stop-loss at ₹430.
