Podcast | Stock picks of the day: Colgate Palmolive top bet as market struggles

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26 Aug, 2025 12:21

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Shitij Gandhi

The Nifty dragged due to the liquidation of long positions. The recent data has again turned negative and is indicating the probability of further profit booking. In the recent downfall, we have observed call writing and put unwinding by option writers which suggest a lack of buying interest and cautiousness for bulls, moving forward.

Call writers were seen active in 10,400, 10,300 and 10,200 strike calls indicating limited upside. We are also seeing continuous short buildup by FIIs which indicates caution ahead.

The levels of 10,400 and 10,500 will remain crucial for this week as indicated by option open interest concentration. The 10,400 call strike holds with OI of more than 34 lakh shares while 10,500 call strike holds with the maximum open interest of more than 44 lakh shares.

The overall data has turned negative and more weakness can be seen in the expiry week. The next immediate support for the Nifty is placed around 10,100-10,050 spot levels.

Here is a list of top three stocks which could give 7-10% return in the next 1 month:

Colgate Palmolive (India): Buy| Target: Rs 1,200| Stop Loss: Rs 1,075| Return 7%

After testing 1020 levels, the stock witnessed a V-shaped recovery and once again prices surpassed its short and long-term moving averages on the daily charts.

Additionally, the stock has also given a breakout above the bullish Flag pattern along with hefty volumes which suggest more upside in coming sessions.

So, traders can accumulate the stock in a range of 1135-1120 for the upside target of 1200 levels with a stop loss below 1075.

Divis Laboratories: Sell| Target: Rs 1,145| Stop Loss: Rs 1,310| Return 8%

The stock has been consolidating in range of 1250-1320 from the last three weeks and has formed a Head and Shoulder pattern on the daily charts.

This week we have observed short build up into the stock along with negative divergence on secondary indicators like RSI and stochastic.

The stock is on the verge of a breakdown below the neckline of the head and shoulder pattern visible on daily charts. Traders can take a short position below 1245 levels for the downside target of 1145 and a stop loss above 1310.

Strides Pharma Science: Sell| Target: Rs 365| Stop Loss: Rs 440| Return 10%

The stock has been maintaining its downtrend on the daily charts and is trading in a sloping channel with a formation of lower highs and lower lows pattern.

However, after a pullback rally from 400 to 440 levels in the recent past, we witnessed selling pressure which led to a fresh breakdown from bearish flag pattern visible on a daily interval.

Traders can take a short position in the range of 405-410 for the downside target of 365 levels and a stop loss above 440.

Disclaimer: The author is a Senior Research Analyst, SMC Global Securities Ltd. The views and investment tips expressed by investment experts on moneycontrol.com are his own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.