On Tuesday, September 1, Indian stock market traders have many trading ideas. Market analysts and brokerage experts have selected five stocks from banking, IT, consumer, and insurance sectors. The stocks are Wipro, Jubilant FoodWorks, Life Insurance Corporation of India (LIC), Axis Bank and City Union Bank.
Trading calls are based on technical and market analysis and include entry point, target and stop-loss points. The recommendations are expected to be positive, even though market volatility is a risk-management strategy, and so traders need to remain on their toes.
City Union Bank: Buy Call
City Union Bank is among the stocks recommended for a short-term buying opportunity. Pradeep Halder, founder and CEO of PHD Capital, has suggested buying the banking stock at around the current market price of Rs 229.50.
Halder has set short-term targets of Rs 238 and Rs 255. The higher target offers potential upside of about 11.11% from the current market price. The analyst has advised traders to keep a very tight stop loss at Rs 207.
The recommendation is also coming as banking stocks still play a big role in the Indian stock market, and it’s a key market to be followed in momentum trading.
Wipro: IT Stock In Focus
IT major Wipro has also received a buy recommendation from VLA Ambala, SEBI Registered Analyst and Founder at SMT Stock Market.
The stock was trading at around Rs 184.50, and the buying price is Rs 180. Ambala has identified targets of Rs 190 and Rs 205. Based on the recommended entry price, these targets could give up about 5.56% or 13.89%.
The analyst has set the stop loss at Rs 170, so a trader will leave the stock if the stock drops below that.
Wipro is closely watched by investors because of its global IT services presence and because it is sensitive to technology spending trends in the world of IT services.
Axis Bank: Buy around Rs 1,270
Private sector lender Axis Bank is another stock on the list. Osho Krishan, Chief Manager - Technical & Derivative Research at Angel One, suggests buying the stock around Rs 1,270.
With the current market price of the stock cited at Rs 1,300, Krishan has set a target of Rs 1,330. The target represents an upside of about 4.72% from the recommended entry level, or about 5.56% from the CMP cited.
Traders are told to keep a stop loss of Rs 1,230. The recommendation is based on a positive technical view on the private sector banking stock.
Jubilant FoodWorks: Target At Rs 535
Jubilant FoodWorks is also among the high conviction trading ideas. Pradeep Halder has issued a buy recommendation on the stock, which was cited at a current market price of Rs 496.
A target of Rs 535 has been set by the analyst, and there is an upside potential of around 7.86% from the current market price.
To contain downside risk, traders are instructed to keep a stop loss at Rs 471. The stock is part of the consumer and food-services segment, so there is another diversified option among the five recommendations.
LIC: Buy At Rs 410
Life Insurance Corporation of India (LIC) rounds out the list of five stocks. Osho Krishan has recommended buying LIC at around Rs 410.
One analyst has a target price of Rs 428, which is around 4.39% better than the recommended entry. A stop loss of Rs 402 has been suggested for the traders.
LIC remains one of India’s most closely followed insurance companies, and its stock can attract significant investor attention because of its scale and importance within the country’s financial-services sector.
Key Trading Levels To Watch
| Stock | CMP | Entry Level | Target | Stop Loss |
|---|---|---|---|---|
| City Union Bank | Rs 229.50 | Around CMP | Rs 238 / Rs 255 | Rs 207 |
| Wipro | Rs 184.50 | Rs 180 | Rs 190 / Rs 205 | Rs 170 |
| Axis Bank | Rs 1,300 | Rs 1,270 | Rs 1,330 | Rs 1,230 |
| Jubilant FoodWorks | Rs 496 | Around CMP | Rs 535 | Rs 471 |
| LIC | Rs 418 | Rs 410 | Rs 428 | Rs 402 |
The five recommendations in general provide some exposure to different parts of the Indian market, including banking, information technology, consumer services and insurance. But these are analyst recommendations rather than guaranteed returns. Stock prices can move sharply because of market sentiment, global cues, sector-specific developments and company-related news.
Traders considering these calls should consider their own risk tolerance and be careful to use the stop-loss levels. The entry prices, targets and stop losses mentioned above are based on the recommendations from the September 1 trading session.
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