Stocks to Buy: Discover the Top 2 Investment Opportunities in Aug 2023: Indian stock market sentiments are subdued in the past few days due to weak global cues. The domestic market sentiments were hit due to lots of uncertainty in the global markets, a slowdown in China, interest rate uncertainty in the US and Europe, and many more.
The recent Fitch and Moody’s downgrade to the US and their regional bank’s credit ratings also dented investors’ sentiments and triggered a sell-off in the markets. But for long and medium-term investors it’s an opportunity to buy quality stocks in correction. Top broking house Prabhudas Lilladher has recommended two stocks to buy for the medium term, which can give you a good return.
1st Stock to Buy-
Cummins India Ltd- CMP 1777- Target-1970- Medium Term
Cummins India Limited is listed under the sector Auto Ancillaries. The share price of Cummins India is trading at 1757 at 2 pm on 11 Aug 2023. The stock has touched a 52-week high at Rs 1980.15 and a low at 1103.80. The share has gained around 53% from its yearly low and touched a 52-week high on 1st Aug 2023.
The stock has witnessed a decent sharp correction from the 52-week high levels i.e. Rs 1980 zone and has shown signs of bottoming out near the 1720 levels with an indication of improvement in the bias. The stock has almost reached the long-term trendline support zone and is well-placed with a favorable risk-reward ratio.
The RSI after the sharp fall has attained the highly oversold zone and indicated a reversal signaled a buy with much upside potential visible. The chart is looking attractive, the research-based broking house Prabhudas Lilladher has suggested to buy the stock and accumulating for an upside target of Rs 1970 keeping the stop loss at Rs 1700.
2nd Stock to Buy-
Gujarat Fluorochemicals Ltd- CMP-2860- Target-3200- Medium term
Gujarat Fluorochemicals is listed under the sector specialty chemical. The current market price of Guj Fluorochemical is Rs 2911 at 2 pm on 11 Aug 2023 and it has fallen 30% from its 52-week high. The stock has touched a 52-Week high at Rs 4173.95 and a low at Rs 2534.05. The stock is trading 6% higher on 11 Aug 2023 and given around 4% return on a weekly basis.
After the decent correction, the stock has consolidated and taken support near the long-term trendline zone of 2670-2700 levels. It has made a decent base and is currently picked up with a positive bullish candle pattern on the daily chart to improve the bias and expected a further up move in the coming days.
The RSI of the stock has recovered significantly from the highly oversold zone. The stock is currently well placed and its strength indicated to carry on the momentum much ahead with immense upside potential visible.
The chart is looking attractive, the research-based borking house Prabhudas Lilladher has suggested to buy the stock and accumulating for an upside target of 3200 keeping the stop loss at 2700. A total of 7 analysts out of 9 on trendlyne.com has recommended to buy the stock.
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