Day Trading Guide: Siddhartha Khemka of Motilal Oswal Recommends 2 Stocks To Buy/Sell Today On Monday

In response to mixed global cues and a decline in the Asian market, Indian indices opened weaker on Monday, October 16. The Nifty fell 26.90 points or 0.14 percent to 19,724.10, while the Sensex fell 126.79 points or 0.19 percent to 66,155.95. On the Nifty, notable gainers included ONGC, HCL Technologies, Coal India, Infosys, and LTIMindtree, while notable losers included BPCL, Asian Paints, IndusInd Bank, Nestle, and Power Grid Corporation.

Market Outlook Today

"Geo-political tension in the Gulf region, a weak opening in the Asian markets, surging oil price and sharp decline in US market on Friday, may open domestic market on a weak note. Earnings from three major banks - JPMorgan, Wells Fargo and Citigroup helped to offset some of the negative sentiment. Oil was more than 5 per cent higher, rising towards $US91 a barrel as concerns about the conflict between Israel and Hamas widening to include Iran flared. Gold surged more than 4 per cent back above $US1900 an ounce.

Back home, Gift Nifty is trading flat to positive while US Future gained up to 0.2%. Market trend will be determined by Geo- political factor, oil price and quarterly results. FMCG, Retail and Auto stocks may be positive on ahead of festival demand," said Siddhartha Khemka Head - Retail Research and Chandan Taparia-Derivatives & Technical Analyst of Motilal Oswal.

Nifty Outlook Today

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

Bank Nifty Outlook Today

The analysts of Motilal Oswal said, "Bank Nifty support at 44000 then 43800 zones while resistance at 44750 then 45000 zones. Now it needs to surpass and hold above 44444 marks for an up move towards 44750 then 45000 zones while a hold below the same could drag it towards 44000 then 43800 levels."

Stocks To Buy Today

Siddhartha Khemka Head - Retail Research and Chandan Taparia-Derivatives & Technical Analyst of Motilal Oswal have recommended 2 stocks to trade on Monday, 16th October.

Technical Pick:

Tata Motor

Buy at CMP of Rs 667, stop-loss: Rs 647, target: Rs 710, duration: 2 to 3 days.

Tata Motor is in an overall uptrend and forming higher lows from the past seven months. On a daily scale, it has given a fresh consolidation breakout and formed a strong bullish marubozu candle. It is holding well above its short-term moving average and good momentum is seen in Auto stocks. The momentum indicator (RSI) also moving northward which suggests momentum to continue in the coming sessions.

Fundamental Pick:

Syrma SGS

Buy at CMP of Rs 641, target: Rs 775, duration: 1 year

It is a technology-focused engineering & design company serving diverse end-use industries like automotive, healthcare, consumer products, Industrial, IT and Railways. Its revenue/EBITDA/ Adj. PAT would report a robust CAGR of 37%/45%/42% over FY23-FY26E, driven by strong order book, traction in end-user industries and improving margin profile. We initiate coverage on the stock with a BUY rating and a TP of INR775 (premised on 40x FY26E P/E), said the analysts.

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.