3 Hot Stocks To Buy Next Week After RBI Maintains Status Quo On Policy Rates

The benchmark indices wrapped up higher for a second consecutive day after the RBI Monetary Policy Committee (MPC) kept the repo rate at 6.5 per cent following its meeting on October 6. The Nifty was 107.70 points or 0.55 per cent higher at 19,653.50 at closure, and the Sensex gained 364.06 points or 0.55 per cent at 65,995.63. All the sectoral indices ended in the green with the realty index at led while broader indices performed flat as the BSE Midcap gained 0.66% and the BSE Smallcap index rallied 0.56%.

Market Outlook Next Week

Commenting on the stock market outlook next week, Vinod Nair, Head of Research at Geojit Financial Services said, "The rising US bond yields and a stronger dollar index have deterred foreign investors, causing weakness in the market. Additionally, robust job data from the US this week has raised concerns about a potential rate hike by the Fed, with the surge in US bond yields indicating an impending increase in interest rates.

The RBI's hawkish stance, particularly in its management of liquidity to counter inflationary risks, has further impacted the market, leading to an increase in India's 10-year bond yield. However, the market found some support from strong domestic PMI data and corrections in crude oil prices, which have helped it overcome the weak trend observed in the previous three weeks. The auto sector struggled this week due to mixed monthly data. Investors will closely monitor the release of U.S. non-farm payroll data, which could significantly influence the interest rate outlook. Additionally, attention will focus on quarterly results from the IT and banking sectors starting next week."

Nifty Prediction Next Week

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities said, "Nifty opened with a gap up and steadily moved up before a sharp fall brought the Index down only for it to recover again sharply to close at 19,654, up 108 points. The Future Open Interest (OI) indicated covering of short positions in Nifty futures. Strong put writing was observed in 19,500 & 19,600 Strikes today, which led to a strong up move in Nifty today. Nifty has given a consecutive higher close on the daily chart, indicating a trend reversal. The Index has also closed above the 50-day Exponential Moving Average of 19,559 today. Nifty touched the 38.2% Fibonacci retracement level of 19,673, drawn from the high of 20,222 made on 15th September to the low of 19,334 made on 4th October. The support for Nifty shifts to 19,600 after a strong closing today."

Bank Nifty Prediction Next Week

"Bank Nifty swung both ways in a day that was marred by volatility as the RBI decided to keep the rates unchanged for the fourth consecutive time. Bank Nifty has formed back-to-back doji candles on the daily chart, indicating indecision. A strong close above 44,500 levels can change the fortunes in Bank Nifty while a break below 44,200 can take the Index to 43,900 levels again. Bank Nifty closed 147 points higher at 44,361," stated Ashwin Ramani.

Stocks To Buy Next Week

AR Ramachandran from Tips2trades has recommended the below stocks to buy or sell next week on Monday.

RBL Bank

RBL Bank has been bearish on the Daily charts with strong resistance at 257. A daily close below support of 243 could lead to a target of 218 in the near term.

Ujjivan Small Finance Bank

Ujjivan Small Finance Bank is overbought and slightly bullish on the Daily charts with next resistance now at 64. Investors should be booking profits at current levels as a daily close below support of 56 could lead to 49.5 in the near term.

Bajaj Finance

Bajaj finance is bullish but also overbought with next resistance now at 8584. Investors should be booking profits at current levels as a daily close below support of 7892 could lead to 7465 in the near term.

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.