Weekly Picks: From Grasim to Apollo Tyres - Motilal Oswal suggests three stocks to buy this week

Indian stock market: The market benchmarks—the Sensex and the Nifty 50—recorded substantial gains, reaching new all-time highs during the session and closing at fresh peaks, on July 3.

The Sensex surpassed the significant 80,000 mark for the first time, peaking at 80,074.3 during the session. Meanwhile, the Nifty 50 also achieved a new high of 24,309.15. The Sensex concluded the day with a gain of 545 points, or 0.69 percent, closing at 79,986.80, while the Nifty 50 ended 163 points, or 0.67 percent, higher at 24,286.50.

“Markets continued their ongoing streak of making new highs supported by firm global trends. Nifty crossed the 24300 mark while Sensex breached the historic 80,000 mark amid buying in banking stocks. Nifty closed with gains of 163 points (0.7%) at 24287 levels. All sectors ended in green including broader space. Private Banks saw healthy buying of 2% after HDFC Bank released its Q1FY25 shareholding data, wherein the FII ownership has declined to 54.8%, below the 55% mark, indicating greater MSCI inflows. Markets cheered the dovish commentary from US Fed Chair Powell. This along with healthy domestic macros and hope of a growth-focused budget led to a positive up-move in the market. We expect this ongoing momentum to continue in the near term. Indian Equities tomorrow would react to release of US Fed meeting minutes and US, Europe, and Asia -Service and Composite PMI data today,” said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Brokerage firm Motilal Oswal has recommended these three stocks to buy this week - Grasim, Dixon Technologies and Apollo Tyres.

Stocks to buy Grasim: Buy at ₹ 2670 | Target price: ₹ 2850 | Stop Loss: ₹ 2600 Grasim is in strong uptrend and trading at life time high territory. On monthly scale the stock is forming higher highs structure from past many months and formed a strong bullish candle. On weekly scale it has given Inside Bar breakout and managed to close above the same. On daily scale it gave consolidation breakout on daily chart and forming higher top-higher bottom formation. Buying is visible across Cement space which may support the ongoing up move. RSI oscillator is placed in the bullish territory which will take the price to higher levels. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 2600 levels on closing basis for a new life time high target towards 2850 zones.

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Dixon Technologies: Buy at ₹ 11971 | Target price: ₹ 12700 | Stop Loss: ₹ 11600 Dixon tech is in strong uptrend and gave consolidation breakout on daily scale after nine sessions. On weekly scale the structure of higher highs – higher lows is intact and base of the stock is shifting higher. It is trading above it short term moving averages and momentum RSI oscillator gave bullish crossover which suggests momentum to continue in coming sessions. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 11600 levels on closing basis for a new high target towards 12700 zones.

Apollo tyres: Buy at ₹ 541 | Target price: ₹ 585 | Stop Loss: ₹ 520 Apollo tyres is in strong uptrend and gave trend line breakout on weekly scale after twenty one weeks. On daily scale the stock managed to close above 520 zones and forming higher lows from past two sessions. Good buying interest is visible in tyre stocks and stock likely to scale new record highs. Relative strength index (RSI) is also near 70 zones which suggests overall strength is the stock. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 520 levels on closing basis for a new life time high target towards 585 zones.