Monsoon stocks to buy: These 5 shares may gain up to 12% as it rains

IMD’s prediction of a normal monsoon, despite El Nino worries, have given investors a chance to eye certain stocks that might see a beneficial impact from the rain. Sectors such as agrochemicals, fertilizers, and rural consumption stocks are expected to benefit from increased demand and agricultural growth. Motilal Oswal selected five stocks that might see a positive impact as a result of the oncoming monsoon. 

Monsoon stock picks

Traders should hold these stocks for the duration of the next month or two, for a potential upside of 12%. Additionally, the stop-loss at 6% of the CMP mentioned. Motilal Oswal also added that the risk is relatively high. In this monsoon basket, all the scrips are given equal weightage, since the brokerage believes they will see an equal gain. The brokerage also gave their technical rationale for picking each stock. 

Technical outlook for monsoon stock picks 

• Finolex Pipes: The stock is placed at the 20 week average and it is taking support at 100 EMA on the daily scale which is building momentum for higher levels

• M&M Finance: The stock has formed a pole and flag pattern on the daily scale which has positive implications.

• Tata Consumer: The stock has retested the breakout zone on the weekly scale and started the fresh move towards higher levels indicating strength. 

• Coromandel: It has taken support at the 20 month average and it is inching higher with price trading above the averages on the daily scale. 

• Bata India: The price has formed a base at the lower zone and it is forming a higher high since the last 3 months which indicates that the trend is positive.

(The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)