Stocks to buy: M&M to Policy Bazaar – MOFSL recommends three shares for this week | Stock Market News

Indian stock market: On Monday, January 6, the Indian stock market experienced a sharp decline, with both the Sensex and Nifty 50 indices falling by more than 1.5 per cent each due to widespread selling. Investor concerns were triggered by reports of a new virus outbreak in China.

The Nifty 50 dropped 1.6 per cent, falling below the critical 24,000 mark to close at 23,616 points, while the Sensex also fell 1.59 per cent, ending at 77,964 points.

“Indian equities faced intense selling pressure amid concerns regarding the outbreak of HMP Virus and sharp fall in banking stocks post lacklustre quarterly updates. Diagnostic stocks were in focus as the first two cases of HMPV were detected in Bangalore. Nifty 50 closed with loss of 389 points at 23,616 (-1.6%). There was broad-based sell-off in the market with midcap and smallcap indices falling between 2-3% each and all sectoral indices closing in the red. Foreign Institutional Investors (FIIs) sold Indian equities worth ₹4,227 crore on Friday. The Indian rupee slipped to an all-time low of 85.82, pressured by persistent demand for US dollar. On the domestic macro front, India’s service PMI rose to a four-month high of 59.3 in December compared to 58.4 in the previous month. In the capital goods sector, order inflows are anticipated to rise from 4QFY25 onwards. Defence sector ordering is also expected to ramp up based on recent approvals. We expect markets to remain volatile until concerns relating to the new virus ease out. We could see stock/sector specific action on the back of pre-quarterly business updates and the start of the Q3 result season,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Brokerage firm Motilal Oswal has recommended three stocks – Mahindra & Mahindra, Kalyan Jewellers and Policy Bazaar – to buy this week with decent upside move.

Stocks to buy

Mahindra & Mahindra: Buy at ₹3190 | Stop Loss: ₹3080 | Target Price: ₹3400

The stock has been consolidating on monthly scale from last few months at life high territory. On weekly scale the stock gave falling supply trend line breakout and formed a strong bullish candle. It is perfectly holding above its 20WEMA and momentum indicator RSI gave trend line breakout on weekly scale which suggests momentum to continue in coming sessions. The stock has been huge outperformer within Auto space and thus we are recommending to buy the stock with keeping stop loss below 3080 levels on closing basis for a new life time high towards 3400 zones.

Kalyan Jewellers: Buy at ₹777 | Stop Loss: ₹740 | Target Price: ₹850

The stock is in strong uptrend and forming higher lows on monthly scale from last few months. On weekly scale the stock is on the verge of range breakout and formed a strong bullish candle. On daily scale the stock is holding near life high territory and trading above its short term moving averages. Momentum Indicator RSI also gave positive crossover which suggests momentum to pick up in coming sessions. The stock has been huge outperformer within midcap space and likely to scale new record highs. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 740 levels on closing basis for a new life time high target towards 850 zones.

Policy Bazaar: Buy at ₹2215 | Stop Loss: ₹2100 | Target Price: ₹2400

The stock is in strong uptrend and forming higher highs – higher lows structure on monthly scale. On weekly scale the stock negated the formation of lower highs and formed a strong bullish candle with highest ever close.It is holding well above its 50DEMA and the RSI is also moving northward which may support the ongoing momentum in coming sessions. Thus we are recommending to buy the stock with keeping stop loss below 2100 levels on closing basis for a life time high towards 2400 zones.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.