Top Stocks You Should Know About This Week

The Sensex and the Nifty benchmarks experienced a decline of approximately 2.5% in August due to concerns over the re-emergence of inflation, extended interest rates, and weakening global economic growth. Although the domestic macroeconomic conditions remain solid, some investors are apprehensive about the market's valuation. Experts have highlighted that the smallcap sector's premium valuation could pose a risk to investors.

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According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, many novice investors are investing in smallcap and microcap stocks to gain quick profits. However, these stocks do not have strong fundamentals, and investing in them can be highly risky. At this juncture, long-term investors are advised to prioritize the safety of high-quality large caps.

Given the slightly uncertain short-term outlook of the domestic market, experts recommend investing in stocks that are sound on technical and fundamental parameters. Based on the recommendations of several experts, here are eight technical calls that can be considered for purchase over the next three to four weeks. Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher Pvt. Ltd

1] Power Grid Corporation of India | Target price: ₹275 | Stop loss: ₹240

The stock, after the short correction, has consolidated, taking support near the lower base of the channel pattern on the daily chart near ₹239 levels and showing signs of improvement in the bias. The RSI also is well-placed after the short dip and has indicated a trend reversal to signal a buy with immense upside potential visible.

2] Mahindra Finance Services | Target price: ₹335 | Stop loss: ₹288

The stock, after the correction, has recovered significantly, witnessing a short consolidation. It has again moved past the important 50EMA level of ₹297 indicating improvement in the bias. The RSI is well placed and after a short consolidation has again regained strength, indicating a further rise.

3] Cie Automotive India Target price: ₹577 | Stop loss: ₹496

The stock witnessed a short correction and thereafter, with a higher bottom formation pattern seen on the daily chart, has indicated a pullback, improving the bias moving past the significant 50EMA level of ₹496. It is anticipated to rise further in the coming days. The RSI is well placed, indicating strength and it has immense upside potential to carry on the momentum still further ahead.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.