Stock picks for the week: SBI Life, Hindalco on buy list, Lupin a shorting candidate: Rajesh Palviya

Indian equity markets have witnessed heightened volatility in recent weeks, driven by global economic trends, sectoral rotations, and fluctuations in institutional investments. As investors navigate shifting market dynamics, certain stocks continue to show strong momentum while others face structural weaknesses.

In this environment, stock-specific strategies become crucial for traders looking to capitalize on short-term opportunities. In an interaction with ET Now, Rajesh Palviya, SVP - Technical and Derivatives Research at Axis Securities, shared his top stock picks for the upcoming week, highlighting SBI Life and Hindalco as strong buy candidates while recommending a short position in Lupin.

SBI Life: Buy| Target price: Rs 1,540| Stop loss: Rs 1,455

SBI Life has been consolidating for the past few weeks, and its short-term structure suggests that the stock could extend its gains in the coming sessions. Palviya noted that the stock is showing strength and could move towards an upside target of Rs 1,540. He recommended that traders looking to buy SBI Life should do so with a stop loss of Rs 1,455 to manage potential downside risks.

Hindalco: Buy| Target price: Rs 680| Stop loss: Rs 637

Hindalco is another stock on Palviya’s buy radar, primarily due to the strong buying action observed over the last four to five trading sessions. He pointed out that the entire metal sector has been witnessing bullish momentum, which could support further upside in Hindalco. Based on his analysis, the stock has a projected target of Rs 680, with a stop loss around Rs 637 to limit losses in case of a reversal.

Lupin: Sell| Target price: Rs 1,840| Stop loss: Rs 1,947

On the short side, Palviya identified Lupin as a stock with a weak structure. He noted that the stock has seen a buildup of short positions, indicating further downside potential. Given the current trend, he expects Lupin to decline towards the Rs 1,840 level. For those looking to take short positions, he advised placing a stop loss at Rs 1,947 in Lupin futures.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)