Motilal Oswal Endorses Three Top Stocks to Invest in This Week: A Comprehensive Financial Analysis

• The Indian stock market indices, Sensex and Nifty 50, ended the trading session on May 6 with a mixed performance. Shares of heavyweight companies such as Titan, SBI, and Reliance Industries exerted notable downward pressure on these primary indices.
• The Sensex closed the day with a slight increase of 17 points, or 0.02 percent, at 73,895.54, while the Nifty 50 concluded with a decrease of 33 points, equivalent to 0.15 percent, at 22,442.70.
• Despite favorable international indicators, domestic market indices concluded the session with subdued performance, driven by persistent worries regarding overvaluation without fresh positive triggers and amid a mixed bag of Q4 earnings updates.

Get the latest updates on the Indian stock market, including expert analysis on the performance of Sensex and Nifty 50, and top stock recommendations for the week.

Mixed Performance of Sensex and Nifty 50

The Indian stock market seems to have factored in a majority of the favorable aspects, and analysts anticipate a period of sideways movement until the election results are announced. There’s a sentiment among some experts that profit-taking may occur post the election outcome. The Indian stock market indices, Sensex and Nifty 50, ended the trading session on May 6 with a mixed performance. Shares of heavyweight companies such as Titan, SBI, and Reliance Industries exerted notable downward pressure on these primary indices.

Subdued Performance Amid Overvaluation Concerns

Despite favorable international indicators, domestic market indices concluded the session with subdued performance, driven by persistent worries regarding overvaluation without fresh positive triggers and amid a mixed bag of Q4 earnings updates. The Sensex closed the day with a slight increase of 17 points, or 0.02 percent, at 73,895.54, while the Nifty 50 concluded with a decrease of 33 points, equivalent to 0.15 percent, at 22,442.70.

Top Stock Recommendations for the Week

Brokerage firm Motilal Oswal recommends the following three stocks to buy this week:

ICICI Bank

Buy at ₹1145 | Target Price: ₹1220 | Stop Loss: ₹1111. ICICI bank is in an overall uptrend and forming higher lows on a monthly scale from the past six months. On a weekly scale, it gave a range breakout after nine weeks and is holding at higher zones. On a daily scale, the stock is consolidating above the breakout zone and formed a bullish candle.

ABB India

Buy at ₹6970 | Target Price: ₹7500 | Stop Loss: ₹6700. ABB is in a strong uptrend and trading at a lifetime high territory with strong outperformance within the Capital space. Technically the stock is forming higher lows from the past three months and gave a range breakout on a weekly scale after five weeks.

NMDC

Buy at ₹268 | Target Price: ₹290 | Stop Loss: ₹258. NMDC is in a strong uptrend within the Metal space and trading at multi-months high territory. Technically the stock is forming higher lows from the past eight weeks and the base of the stock is shifting higher.

Conclusion

Given the mixed performance of the Indian stock market indices and the current overvaluation concerns, investors are advised to tread carefully. The top stock recommendations for the week by Motilal Oswal include ICICI Bank, ABB India, and NMDC.