Stocks to buy: Nestle, Bajaj Finance and IndusInd Bank on investors' radar
Heavyweight stocks such as Nestle India and IndusInd Bank contributed to Sensex and Nifty closing higher for three consecutive days by Thursday. Investors should retain their positions in Nestle India and Bajaj Finance according to technical analysts' recommendations but they should divest from IndusInd Bank.
Stocks to buy: Nestle, Bajaj Finance and IndusInd Bank on investors' radar
The winning streak continued through to the third day as benchmark indices Sensex and Nifty reached higher closing levels on Thursday because investors bought heavyweight stocks.
Investors focused on stocks to buy such as Nestle India which increased by 2%, IndusInd Bank which went up by 1.1%, and Bajaj Finance which experienced a 2.1% share price jump on Thursday.
Nestle India
Nestle India shares have entered a downtrend phase but currently hover near their support level at 2145 following a 23% drop from their peak at 2778 while showing strength against further losses similar to its industry group.
The stock's price performance shows poor results both when compared to its performance during the last 12 months and against the Nifty50 benchmark while exhibiting reduced buying demand. The demand for the entire sector continues to struggle in today's economic climate.
Bajaj Finance
Over four years Bajaj Finance's share price has developed a volatility contraction pattern that indicates savvy investors may find this space intriguing. Our analysis leads us to retain a positive medium-term forecast for this stock.
The company achieved substantial gains in earnings per share (EPS), buyer demand, and price strength against its prior-year performance and in comparison to the Nifty50 index showing positive signals.
IndusInd Bank
Technical data shows IndusInd Bank's share price remains in a sustained downtrend with no indications of a recovery in sight. The stock's current value stands 45% beneath its January last year peak of 1694.
Price action remains well below the 50-week moving average at present while the daily moving average serves as a consistent supply area to reject recovery efforts and indicates a negative trend.
The company has experienced a significant reduction in its EPS strength alongside decreased relative strength to Nifty50 and weaker past 12-month price performance along with diminished buyer demand. The current conditions encourage investors to divest from this stock while they should consider opportunities with HDFC Bank, Kotak Bank or ICICI Bank which operate in the private banking sector.
