Day Trading Guide: 2 Stock Picks By Siddhartha Khemka For Today, 5th Oct

Indian benchmark indices opened higher due to a rally in global stock markets, a dramatic drop in the price of oil, and an outstanding rally in the Asian market. Nifty started above 19,500 on Thursday, as the Sensex surged above 300 points in its opening session.

Market Outook Today

Siddhartha Khemka Head - Retail Research and Chandan Taparia-Derivatives & Technical Analyst of Motilal Oswal said, "Rally in the global market, sharp decline in oil price and impressive quarterly corporate earnings update, may open domestic bourses on a positive note. Sentiment was boosted across the global market after U.S. 10-year bond yields eased lower by 10-bps to 4.74% after hitting fresh 16-year highs in the previous and falling in the U.S. dollar index to below the 107 level. Weaker-than-expected job data lifted the US market up to 1.4% on the expectation that the US Fed may cool down its aggressive stance on a hike in interest rates. Shares rose in Asia after stocks rallied on Wall Street, bringing some relief to financial markets after losses. Australian, Japanese and South Korean stocks all climbed up between 0.5% to 1% on account of a fall in US 10-year bond yield. Gift Nifty is up 0.2% after it ended at a 1-month low on the previous day. Expects, the market will bounce back on account of impressive quarterly earnings by corporate and benefit of sharp decline oil price from a 1-year high."

Nifty Outlook Today

The analysts of Motilal Oswal believe that Nifty immediate support is at 19333 then 19220 zones while resistance is at 19550 then 19650 zones. Now till it holds below 19500 zones, weakness could be seen towards 19333 then 19220 zones whereas hurdles are placed at 19550 then 19650 zones.

Bank Nifty Outlook Today

Bank Nifty support is at 43850 then 43600 zones while resistance is at 44444 then 44750 zones. Now till it holds below 44250 zones weakness could be seen towards 43850 then 43600 zones while on the upside hurdle is seen at 44444 then 44750 levels, the analysts stated.

Stocks To Buy Today

Siddhartha Khemka Head - Retail Research and Chandan Taparia-Derivatives & Technical Analyst of Motilal Oswal have recommended the below stocks to buy or sell today on Thursday.

Technical Pick:

Infosys

Buy at CMP of Rs 1444, stop-loss: Rs 1410, target: Rs 1500, duration: 2 to 3 days

Infosys has taken support near its 50 DEMA and formed a strong bullish candle on daily scale. The stock is bouncing from its 50% retracement of the previous up move which started from 1305 to 1515 levels. Relative strength Index (RSI) is also bouncing from the oversold territory and risk reward ratio is quite favorable at current juncture Nifty IT has also retested the breakout on daily scale and moving higher which may support the up move.

Fundamental Pick:

PNB

Buy at CMP of Rs 80, duration: 1 year

The bank's gross global advances grew 14% YoY to ~INR9.45t (up 3% QoQ). Domestic advances, which form 96% of total advances, also grew 14% YoY (up 3% QoQ) to INR9.08t as of 2QFY24, while the international book grew 10% YoY to INR367b. The total deposit base grew at a steady 10% YoY (flat QoQ) to INR13.09t. Domestic deposits grew by 9% YoY (flat QoQ), with CASA registering a modest increase of 2.6% YoY (1.4% QoQ). As a result, the CASA ratio grew 27bp QoQ to 42.2%. CD ratio for the bank thus increased ~154bp QoQ to 72.2% vs 70.6% in 1QFY24.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.