The Indian stock market stayed in positive territory for the fourth consecutive session on Tuesday, August 19, as GST rationalisation and India’s credit rating upgrade kept investor risk appetite intact.
The Sensex closed 371 points, or 0.46%, higher at 81,644.39, while the Nifty 50 settled at 24,980.65, up 104 points, or 0.42%. The BSE Midcap and Smallcap indices outperformed, rising by a percentage each. Let’s get on to the best stock recommendations for today by India’s expert analysts.
Here are three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for Wednesday.
ZUARI (Cmp ₹339.05)
- Why it’s recommended: Zuari Agro Chemicals Limited is an India-based fertilizer manufacturing company. The Company is engaged in the business of manufacturing, trading, and marketing of chemical fertilizers and fertilizer products. The company’s last Q4 performance has not been as per expectations however the charts after showcasing the selloff that had indicating a revival in progress and this could be an opportunity to consider this stock as a buying opportunity.
- Key metrics:
- P/E: 5.25,
- 52-week high: ₹390,
- Volume: 336.06K.
- Technical analysis: Support at ₹260, resistance at ₹425.
- Risk factors:High volatility, elevated borrowing levels, negative investor sentiment, and long-term bearish trends.
- Buy : CMP and dips to ₹295.
- Target price: ₹375-390 in 1 month.
- Stop loss: ₹287.
TAJGVK (Cmp ₹435.60)
- Why it’s recommended: Taj GVK Hotels & Resorts Limited is a joint venture between Indian Hotels Company Limited (a Tata Group company) and the Hyderabad-based GVK Group. It owns and operates a portfolio of Taj branded hotels, resorts, and palaces. The stock has absorbed the recent negative fundamentals and has been in a forming rounding patterns at the TS & KS lines and generating steady buying interest. Any profit booking seen is quickly being bought into indicating that the trends are poised for continued upside. Further , the long body candle seen on Tuesday indicates potential to move higher.
- Key metrics:
- P/E: 22.05,
- 52-week high: ₹331.45
- Volume: 596.86K
- Technical analysis: Support at ₹395, resistance at ₹425.
- Risk factors: Region-specific economic and socio-political conditions, Intense competition and changing travel trends.
- Buy above: CMP and dips to ₹420.
- Target price: ₹475-490 in 1 month.
- Stop loss: ₹410.
IIFL (Cmp ₹471.90)
- Why it’s recommended: IIFL Finance Limited, also known as IIFL, is a prominent diversified non-banking financial company (NBFC) headquartered in Mumbai, India. It is a leading player in the financial services sector in India. Being a dominant player the sock has been consolidating after a sharp rise seen in July and is now showing some signs of recovery above the current consolidation and a potential to move to the upside after profit booking that had emerged.
- Key metrics:
- P/E: 58.90,
- 52-week high: ₹560.60
- Volume: 2.26M.
- Technical analysis: Support at ₹416, resistance at ₹525.
- Risk factors: Regulatory and compliance risks, deterioration in asset quality and increased competition in the NBFC sector.
- Buy above: CMP and dips to ₹450.
- Target price: ₹505-515 in 1 month.
- Stop loss: ₹435.
Top three Stock Picks by Ankush Bajaj for 20 August
Buy: GODAWARI POW & ISP LTD — Current Price: ₹216
- Why it’s recommended: Godawari Power is showing strong bullish momentum, with the daily RSI at 70, MACD at 5 in positive territory, and ADX at 18, indicating trend strength. The stock has recently broken above major resistance at ₹210 with a head-and-shoulder breakout supported by 8.76M volume, suggesting continuation of the rally.
- Key metrics: Pattern: Head-and-shoulder breakout above ₹210 with high volume
- MACD: Positive at 5, confirming buy momentum
- RSI: 70, in bullish zone
- ADX: 18, signaling emerging trend strength
- Technical analysis: The breakout structure along with strong volume points to further upside toward ₹244.
- Risk factors: Market remains cautious despite strong earnings growth, as reflected in low P/E valuation. Sustainability of margins, cyclicality in steel/iron ore demand, and volatility in raw material costs may weigh on the stock.
- Buy at: ₹216
- Target price: ₹244
- Stop loss: ₹202
Buy: MOTILAL OSWAL FIN LTD — Current Price: ₹959.38
- Why it’s recommended: Motilal Oswal is showing strong bullish momentum, with the daily RSI at 62, MACD at 10.60 in positive territory, and ADX at 18, indicating a strengthening trend. The stock broke above ₹960 to a new high and is now retesting this level. Sustaining above ₹980 could lead to a rally above 1,000 in the near term.
- Key metrics: Pattern: Breakout above ₹960 and retesting support
- MACD: Positive at 10.60, confirming buy momentum
- RSI: 62, in bullish territory
- ADX: 18, signaling trend building
- Technical analysis: The retest structure indicates accumulation. A sustained close above ₹980 may trigger fresh momentum toward ₹1,010.
- Risk factors: Vulnerability to regulatory changes, interest rate cycles, and market volatility. Asset quality and dependence on capital markets pose additional business risks.
- Buy at: ₹959.38
- Target price: ₹1,010
- Stop loss: ₹932
Buy: TATA MOTORS LTD — Current Price: ₹700.25
- Why it’s recommended: Tata Motors is showing strong bullish signals, with the daily RSI at 62, MACD giving a positive crossover (value –3), and ADX at 25, indicating strong trend strength. On the 45-minute timeframe, the stock has broken above the upper channel of its trend line, pointing to a continuation rally.
- Key metrics: Pattern: Breakout above upper channel on intraday chart
- MACD: Positive crossover, signaling buy entry
- RSI: 62, in bullish zone
- ADX: 25, signaling strong trend
- Technical analysis: The breakout with supporting momentum indicates an upside move toward ₹735 in the near term.
- Risk factors: Auto sector cyclicality, global slowdown risks, rising raw material costs, and exposure to international markets (Jaguar Land Rover) may impact performance.
- Buy at: ₹700.25
- Target price: ₹735
- Stop loss: ₹682
Two stock recommendations by MarketSmith India:
Buy: L&T Finance Holdings(current price: ₹ 217)
- Why it’s recommended: Improving financial performance & asset quality, tech-led expansion & clear growth guidance, retail-first transformation & operational resilience
- Key metrics: P/E: 19.78, 52-week high: ₹ 217.65, volume: ₹ 203.19 crore
- Technical analysis: Trending in the bullish zone with positive bias
Risk factors: Asset quality & portfolio risk, parent dependency & support uncertainty, market, regulatory & operational exposure
Buy: ₹ 217
Target price: ₹ 248 in two to three months
Stop loss: ₹ 202
Buy: Asahi India Glass Limited (current price: ₹870)
Why it’s recommended: Dominant market position, integrated operations & backward integration
Key metrics: P/E: 54.57; 52-week high: ₹876; volume: ₹ 14.89 crore
Technical analysis: downward sloping trendline breakout
Risk factors: Margin pressure from float glass competition, dependency on key customers
Buy at: ₹860–875
Target price: ₹960 in two to three months
Stop loss: ₹ 830
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Trade name: William O’Neil India Pvt. Ltd. (Sebi Registered Research Analyst Registration No.: INH000015543)
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
