Motilal Oswal's Siddhartha Khemka Stock Picks For Today, 17th October

Nifty wrapped up at 19732 levels on Monday, down 19 points, while DIIs purchased shares for Rs. 1184 crore while FIIs sold shares worth Rs. 594 crore. European markets wrapped up by gaining 0.3% to 0.4% and US indices up 1% to 1.2%, respectively. Tuesday's volatile trading of the Asian indices, which range from -0.3% to 1%, points to a mixed day for global signals. Gift Nifty is now trading in the green, and mixed results are being reported in US Futures, pointing to a successful start for Indian benchmark indices on Tuesday.

Stock Market Outlook Today

Siddhartha Khemka Head - Retail Research and Chandan Taparia-Derivatives & Technical Analyst of Motilal Oswal said the market is expected to open on a strong note on account of across the global markets rally amid reports that the US and its allies are stepping up efforts to de-escalate the conflict between Israel and the militant group Hamas in Palestine.

"Global sentiment boosted after the news that the US President Joe Biden is considering visiting Israel tomorrow as his officials held talks with Iran through back-channels to contain the conflict. Major commodity like oil price decline over 2% to below 90 level, gold price fell by 1%, US Dollar Index shed to 106 level and US Vix (volatile Index) nosedive over 10%. Gift Nifty is up nearly 100 points while mixed bag seen in the US Future," said the analysts.

Nifty Outlook Today

"Nifty immediate support at 19650 then 19550 zones while resistance at 19850 then 19950 zones. Now it has to continue to hold above 19700 zones, for an up move towards 19850 then 19950 zones whereas supports are placed at 19650 then 19550 zones, stated the analysts of Motilal Oswal.

Bank Nifty Outlook Today

"Bank Nifty support at 44044 then 43800 zones while resistance at 44750 then 45000 zones. Now it has to cross and hold above 44444 marks for an up move towards 44750 then 45000 zones while a hold below the same could drag it towards 44044 then 43800 levels," the analysts added.

Stocks To Buy Today

Siddhartha Khemka Head - Retail Research and Chandan Taparia-Derivatives & Technical Analyst of Motilal Oswal have recommended the below 2 stocks to trade on Tuesday, 17th October.

Technical Pick:

Havells

Buy at CMP of Rs 1414, stop-loss: Rs 1380, target: Rs 1485, duration: 2 to 3 days.

Havells has given a consolidation breakout on the daily chart and holding well above the same. It has formed a strong bullish candle on daily scale and holding well above 50 DEMA indicating strength in the counter. The momentum indicators RSI has also given breakout and supports are gradually shifting higher

Fundamental Pick:

HDFC Bank

Buy at CMP of Rs 1530, target: Rs 1950, duration: 1 year

HDFC Bank (HDFCB) reported a steady first quarter after the merger, with in-line PPoP and robust business growth (~5% QoQ). PAT grew 33.7% QoQ to INR159.8b in 2QFY24. HDFCB has made a good beginning, and given a huge pace of capacity building, we believe that there are levers in place to sustain this momentum in business growth. We estimate HDFCB to deliver a CAGR of 18%/20% in loans/deposits and a 21% CAGR in earnings over FY24-26, translating into RoA/RoE of 2%/17.4% by FY26E, said the analysts of Motilal Oswal.

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.