In a recent interview with CNBC-TV18, Shivangi Sarda of Motilal Oswal Financial Services shared her insights on two promising stocks picks - from IT and auto sectors.
NSE
The first stock on Shivangi Sarda's radar is Birlasoft, a company operating in the Information Technology (IT) sector. She highlighted the current momentum in IT stocks and pointed out that the Nifty IT index is holding strong, receiving substantial support. Birlasoft, in particular, has been an outperformer in this sector.
One key indicator that excites Sarda is Birlasoft's respect for its upward sloping channel on the weekly timeframe. This trend suggested that even minor declines in the stock price may be perceived as opportunities for investors to buy in. The stock has been consistently forming higher lows over the past five sessions, indicating robust support, especially near its 40-day exponential moving average (EMA), which it has respected for the last six months.
Moreover, Sarda noted that more than 5% long positions have been added to Birlasoft in the current series. This increase in interest, combined with a notable price rise, supported her expectation of a significant upmove in the stock's value. She has set a target price of Rs 545 and then Rs 550 levels, with a stop loss at Rs 510.
Over the last month, Birlasoft shares have already gained more than 2%, making it an appealing prospect for investors.
Moving on to the auto sector, Shivangi Sarda's second pick is TVS Motor. Like Birlasoft, TVS Motor has shown remarkable performance within its industry. The stock has consistently formed higher lows over the past nine months, accompanied by strong delivery-based buying, signaling its strength relative to other auto companies.
Sarda emphasized that TVS Motor's Relative Strength Index (RSI) is also entering the buying zone, indicating a positive sentiment surrounding the stock. Additionally, a weekly consolidation over the last 3-4 weeks further supported the case for an upside potential.
With these factors in mind, Sarda recommended a buy on TVS Motor with a target price of Rs 1,585 and then Rs 1,600, while setting a stop loss at Rs 1,480.
Over the past month, TVS Motor shares have already seen an increase of more than 1%, reinforcing the stock's appeal to investors.
Disclaimer:
The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.