India’s benchmark equity indices, the Sensex and Nifty 50, edged higher on Thursday, 14 August, tracking positive global cues. Gains, however, were capped as investors stayed cautious ahead of the upcoming Russia–US talks on the Ukraine conflict, keeping sentiment muted in the holiday-shortened week.
On 14 August, the Sensex closed at 80,597.66, up 57.75 points or 0.07%, while the Nifty 50 settled at 24,631.30, up 11.95 points or 0.05%, holding above the 24,600 mark.
On to the top stock picks for 18 August, as recommended by India’s leading market experts.
Two stock recommendations by MarketSmith India for 18 August:
Buy: HDFC Life Insurance Co. Ltd(current price: ₹ 788.75)
- Why It is recommended: Strong premium growth and profitability, industry-leading distribution network, and superior operational efficiency and returns
- Key metrics: P/E: 45.64, 52-week high: ₹ 7,605.00, volume: ₹177.35 crore
- Technical analysis: Reclaimed its 21-DMA
- Risk factors: Intense industry competition and regulatory sensitivity, claims and settlement challenges, valuation concerns, and growth expectations
- Buy at: ₹788.75
- Target price: ₹880 in two to three months
- Stop loss: ₹745
Buy: Eicher Motors Ltd (current price: ₹5,760)
- Why it’s recommended: Dominant position in premium motorcycles and balanced growth via commercial vehicles (VECV)
- Key metrics: P/E: 37.71; 52-week high: ₹5,906; volume: ₹ 132.26 crore
- Technical analysis: downward sloping trendline breakout
- Risk factors: High valuation reflecting elevated expectations, dependence on premium motorcycle demand
- Buy at: ₹5,700–5,800
- Target price: ₹6,100 in two to three months
- Stop loss: ₹ 5,600
Top 3 stock picks by Ankush Bajaj for 18 August
- Why it’s recommended: The stock has strong momentum with an RSI of 60, MACD at 47, and ADX at 17, indicating an emerging trend. It is trading above all its major moving averages, confirming underlying strength. On the daily chart, the stock has made a new lifetime high, supported by a steady build-up in volume.
Air travel demand remains robust, and the company continues to benefit from strong passenger load factors and expanding capacity, which adds a supportive fundamental backdrop to the bullish technical setup.
- Pattern: Breakout to new lifetime high
- MACD: Positive at 47, giving buy signal
- RSI: At 60, in bullish territory
- ADX: At 17, indicating trend initiation
- Moving Averages: Trading above all major MAs
- Technical analysis: Sustained price action above ₹6,000 with volume could lead to further upside towards ₹6,200.
- Risk factors: A close below ₹5,900 would weaken the bullish structure
- Buy at: ₹6,002.50
- Target price: ₹6,200
- Stop loss: ₹5,900
Muthoot Finance Ltd—current price: ₹2,757.40
- Why it’s recommended: Muthoot Finance has strong momentum with a daily RSI of 63, MACD at 3, and ADX at 21.55, indicating a confirmed trend. All major EMAs signal a buy, and recent price action suggests a continuation of the uptrend. Positive sentiment in the NBFC and gold loan segment, coupled with steady earnings growth, adds a supportive backdrop to the technical setup.
- Pattern: Strong uptrend continuation
- MACD: Positive at 3
- RSI: At 63, showing strong momentum
- ADX: At 21.55, giving buy signal
- EMAs: All major EMAs aligned bullish
- Technical analysis: Momentum and trend strength indicate potential move towards ₹2,930 if the uptrend holds.
- Risk factors: A close below ₹2,671 would negate the bullish bias.
- Buy at: ₹2,757.40
- Target price: ₹2,930
- Stop loss: ₹2,671
Uno Minda Ltd—current price: ₹1,149.80
- Why it’s recommended: UNO MINDA is showing bullish momentum with RSI at 63, MACD at 9, and ADX at 15. On the 15-minute chart, the stock has broken out of a triangle pattern, which could act as a continuation signal.
The auto ancillary sector has been witnessing robust demand, and the company’s product diversification supports a sustained bullish outlook.
- Pattern: Triangle breakout on lower timeframe
- MACD: Positive at 9
- RSI: At 63, in bullish zone
- ADX: At 15, indicating early trend stage
- Technical analysis: Triangle breakout supported by momentum indicators could drive the stock higher in the short term.
- Risk factors: A close below ₹1,125 would weaken the bullish view.
- Buy at: ₹1,149.80
- Stop loss: ₹1,125
Here are three stocks to buy on Monday, as recommended by NeoTrader’s Raja Venkatraman.
Emcure (Cmp ₹1454.80)
- Why it’s recommended: Emcure has recently reported encouraging quarter numbers that can now help it to stem the decline. The last two quarters with some encouraging numbers we can expect the trends to showcase some robustness. A positive long body candle clearly highlights the intent and the improving scenario will now push the trends towards new highs. A fresh uptick is momentum is encouraging.
- Key metrics: P/E: 69.02; 52-week high: ₹1580; Volume: 241.99K
- Technical analysis: Support at ₹1280, resistance at ₹1650.
- Risk factors: Regulatory and quality risks, raw material dependency, competition, legal issues, and potential disruptions in manufacturing and R&D.
- Buy: CMP and dips to ₹1400.
- Target price: ₹1540-1580 in 1 month.
- Stop loss: ₹1380.
- Why it’s recommended: Globus Spirits have been going through a rough patch and the strong push backed by volumes after its rounding pattern formation in July this year are suggesting a trended action . The last few days the prices have been consolidating and the strong push above value area resistance around 1130 augurs well for the prices. As momentum is also providing a favourable tailwind, we can consider some bullish prospects.
- Key metrics: P/E: 129.55; 52-week high: ₹1369.75; Volume: 102.59K
- Technical analysis: Support at ₹1110, resistance at ₹1400.
- Risk factors: Industry competition , market volatility, elongated operating tailwind.
- Buy: CMP and dips to ₹1160.
- Target price: ₹1325-1350 in 1 month.
- Stop loss: ₹1130.
- Why it’s recommended: MFSL is primarily engaged in growing and nurturing business investments and providing management advisory services to its group companies. Momentum indicator clearly says that the trends are establishing themselves now with the prices moving above the cloud. Volumes are also building up and this can be a good trigger in the coming days.
- Key metrics: P/E: 163.10; 52-week high: ₹1668.95; Volume: 244.89K
- Technical analysis: Support at ₹1450, resistance at ₹1850.
- Risk factors: Potential breaches of safety norms and contract terms, Non-compliance with safety norms and contract terms.
- Buy: above ₹1600 and dips to ₹1550
- Target price: ₹1650-1675 in 1 month.
- Stop loss: ₹1530.
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.
