Top technical picks: Motilal expects HAL, DLF, Tata Motors, Indian Hotels and Federal Bank to outperform in 1 month

Pranati Deva
Updated: 06 Sep 2022, 09:05 AM IST
TL;DR.

Markets have been in an upward trend since July 2022. In a recent technical note, Motilal Oswal said that looking at the overall chart structure it expect the index to scale to higher levels. As long as the index is above 17,442 we can expect levels of 17,777 and 18,250 whereas support on the lower side are placed at 17,150 and 17,000, it noted. The brokerage believes there will be stock specific action which will continue in the market among stocks which have relative strength. There is buying interest visible in stock that looks attractive from the technical chart perspective and it has identified 5 stocks which are expected to outperform in the short to near term. This basket of 5 stocks, where each has a 20% weightage, is expected to see 12% upside in a month.

DLF: According to the brokerage, the realty stock has given a breakout of the falling supply trend line on the weekly scale and the stock has a strong setup on the monthly chart which will take the prices to higher levels. The stock rose just 1 percent in August after a 23 percent rise in July. In the last 1 year, it is up 15 percent.

Indian Hotels: As per MOSL, the hotel stock is making a higher high over the last 4 months which indicates that the stock is in a strong uptrend. On the daily scale, it is respecting the 20 DEMA since the last 40 trading sessions and sustaining above the same indicating up move to continue, noted the brokerage. The scrip has more than doubled investor wealth in the last 1 year, up 108 percent. In August, the stock jumped nearly 9 percent after a 17 percent rally in July.

Tata Motors: The brokerage noted that the auto stock has formed a base on the daily scale and has given a breakout near 460 zones. The momentum indicators are positively placed and there is buying interest visible in the stock at the support zone which will take the prices higher, it pointed out. The stock has risen 56 percent in the last 1 year and around 12 percent since July.

Federal Bank: Motilal Oswal stated that the banking stock has given a breakout on the monthly scale near 100 levels and it has formed a bullish candle with follow up buying which is visible and the price can inch towards higher zones. The stock of the private sector lender jumped 44 percent in the last 1 year and around 30 percent since July.

HAL: There is strong momentum on the monthly chart which is likely to continue, noted MOSL. On the daily scale, the stock is giving a fresh breakout of the consolidation zone and it is forming a bullish candle which has positive implications, it added. The stock has surged 70 percent in the last 1 year. It also delivered double-digit returns both in July and August, up 14 percent and 13 percent, respectively.

First Published: 06 Sep 2022, 09:05 AM IST