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The equity market witnessed a roller-coaster ride in the month of August, with the benchmark indices starting the month at record highs, and then dipping before bouncing back and registering fresh peaks towards the end.
The Sensex was up 0.8 per cent at 82,380 levels for the month, while the Nifty had gained 1.1 per cent at 25,230 levels.
Among the frontline stocks, Bajaj Auto was the top gainer as shares of the two-wheeler major rallied nearly 12 per cent. HCL Technologies, Bajaj Finserv, Tech Mahindra, Bharti Airtel and Sun Pharma were the other major gainers, up over 5 per cent each.
In the broader market, PCBL zoomed 48 per cent, and Godfrey Phillips 45 per cent. Oil India, Gujarat State Petronet, Poly Medicure, Trent, Himadri Speciality Chemical, Triveni Turbine, Balrampur Chini and Inox Wind were the other significant movers - up over 20 per cent.
Going ahead into the month of September, which stocks can be potential winners? Here we have hand-picked 5 stocks that have given a 'Buy' signal on the daily chart based on MACD - (Moving Average Convergence-Divergence) - parameter.
Know more about MACD...
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MACD is a key technical momentum indicator, which helps in ascertaining the price trend of an underlying stock or index. The MACD is plotted as two lines - MACD line and a signal line. The MACD line is the difference between two set exponential moving averages, while the signal line is the average of the last nine days MACD line.
Thus, as and when the MACD line crosses the signal line a 'Buy' signal is generated and vice versa.
Here are the 5 hand-picked stocks for the month of September:
Tata Motors
Current Price: Rs 1,110
Upside Potential: 16.2%
Support: Rs 1,072; Rs 1,042; Rs 1,018
Resistance: Rs 1,146; Rs 1,207; Rs 1,237; Rs 1,263
The price-to-moving averages action is favourable for Tata Motors across time-frames. Chart suggests that the overall trend for the stock is likely to remain favourable as long as the stock holds above Rs 1,018 its 20-WMA (Weekly Moving Average). Near support for the stock exists at Rs 1,072 and Rs 1,042 wherein stands the 20- and 50-DMA (Daily Moving Average). CLICK HERE FOR THE CHART
On the upside, the stock is facing some resistance around Rs 1,146. Breakout and sustained trade above the same can trigger a rally towards Rs 1,290; with interim resistance likely around Rs 1,207, Rs 1,237 and Rs 1,263.
Mahindra Holidays & Resorts India
Current Price: Rs 410
Upside Potential: 19.5%
Support: Rs 405; Rs 403
Resistance: Rs 427; Rs 440; Rs 473
Mahindra Holidays stock is seen struggling below its 200-DMA in recent days. The 200-DMA stands at Rs 411. Given the 'Buy' signal on MACD the stock may attempt to break above the same. On the upside, the stock can potentially rally to Rs 490, with interim resistance seen at Rs 427, Rs 440 and Rs 473. In case of a dip, support for the stock can be expected around Rs 405 - Rs 403 levels. CLICK HERE FOR THE CHART
HUDCO
Current Price: Rs 290
Upside Potential: 20.7%
Support: Rs 280; Rs 269
Resistance: Rs 301; Rs 308
HUDCO is seen moving in a tight range of Rs 315 - 280 in the entire month of August. The stock at present is seen testing resistance around its 50-DMA (Daily Moving Average) at Rs 301, above which immediate resistance is seen at Rs 308. On the upside, the stock can potentially rally to Rs 350.
On the downside, below Rs 280 support for HUDCO stock is visible at Rs 269 - its 100-DMA. CLICK HERE FOR THE CHART
Sonata Software
Current Price: Rs 670
Upside Potential: 28.4%
Support: Rs 643; Rs 622
Resistance: Rs 686; Rs 747
Sonata Software seems headed towards its intermediate hurdle at Rs 686, above which the next significant resistance stands at Rs 747. Given the positive indicators from technical oscillators, the stock can potentially rally to Rs 860 on the upside.
On the flip side, in case, the stock fails to clear the resistance at Rs 686, it can possibly dip to Rs 643 and Rs 622 levels; wherein stands the 50- and 100-DMA. CLICK HERE FOR THE CHART
Global Health (Medanta)
Current Price: Rs 1,129
Upside Potential: 13.4%
Support: Rs 1,060
Resistance: Rs 1,174; Rs 1,190
Medanta stock is seen seeking support around its super trend line on the weekly scale for the third straight week. The stock has consistently managed to sustain above the same since mid-February 2024. The weekly super trend line stands at Rs 1,060.
The near-term bias for the stock is likely to remain positive as long as the stock manages to hold above Rs 1,060. On the upside, thes tock can potentially bounce back to Rs 1,280 levels; with interim resistance seen at Rs 1,174 and Rs 1,190. CLICK HERE FOR THE CHART
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