2 Stock Picks By Siddhartha Khemka of Motilal Oswal For Thursday, 26th Oct

Nifty began slightly higher on Wednesday, but it promptly gave up its early gains and saw selling for the second day in a row. As a result, it ended the day down 160 points (-0.8%) at 19122 levels. Yesterday, US markets had a drop of 2.5% following the Q2 results that were less than expected and the September new home sales data that boosted US 10-year bond rates to 4.95%. Asian markets are down 0.5-2.5% on Thursday due to growing worries about the situation in the Middle East and the impending release of US GDP data.

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 weak note on account of sharp decline in US and Asian market, rising geopolitical tension in the gulf region, persistent FIIs selling and US 10-Year bond Yield spiked to 16-year high of nearly 5% level.

"Overnight, Nasdaq Composite slipped nearly 3% to close 5-month low at below 13k level- one of the biggest single day fall since last 8-month after the Google parent Alphabet, Meta and Boeing posted disappointing earnings. Asian markets decline sharply after disappointing results reports from technology giants. Brent Crude surged to nearly $90/bbl and surging gold price to 1-month high above $1980/ounce after the news that the Israel will proceed with a ground invasion of Gaza," they said.

Nifty Prediction Today

"Nifty immediate support at 19000 then 18888 zones while resistance at 19250 then 19333 zones. Now till it holds below 19222 zones, weakness could be seen towards 19000 then 18888 zones whereas hurdles are placed at 19250 then 19333 zones," the equity research analysts of Motilal Oswal said.

Bank Nifty Outlook Today

"Bank Nifty support at 42500 then 42250 zones while resistance at 43333 then 43600 zones. Now till it holds 43333 zones weakness could be seen towards 42500 then 42250 levels while on the upside hurdle is seen at 43333 then 43600 zones," they claimed.

Stocks To Buy Today

Siddhartha Khemka Head - Retail Research and Chandan Taparia-Derivatives & Technical Analyst of Motilal Oswal suggested 2 shares to buy or sell today, 26th October 2023.

Technical Pick:

Persistent Systems

Buy at CMP of Rs 5898, stop-loss: Rs 5750, target: Rs 6200, duration: 2 to 3 days

Persistent has given a falling channel breakout on the daily chart and managed to close above the same. It has formed a bullish candle on a daily scale and holding gains in spite of market weakness. The momentum indicator RSI is positively placed and supports are gradually shifting higher.

Fundamental Pick:

Axis Bank

Buy at CMP of Rs 955, target: Rs 1150, duration: 1 year

AXSB's PAT grew 10% YoY to INR58.7b (inline) in 2QFY24, driven by healthy NII growth (19% YoY/3% QoQ) and contained provisions, despite high opex. NIMs improved 1bp QoQ to 4.11% (vs. a decline for many peer banks), aided by higher liquidity deployment (~500bp QoQ decline in LCR ratio) and a better asset mix. Loan growth was healthy at 23% YoY/4.5% QoQ, while deposit growth was muted (+1% in 1HFY24). A decline in fresh slippages (to INR32.5b) and healthy recoveries led to a sharp decline in GNPA ratio. We expect FY25 RoA/RoE of 1.9%/16.6%, the analysts said.

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.