Day Trading Guide: Siddhartha Khemka of Motilal Oswal Recommends 2 Stocks To Buy Today, 18th Oct

Domestic equities made a rebound on Tuesday following a three-day slide. Nifty had a strong day overall, maintaining its resilience to end at 19812 levels with gains of 80 points (0.4%). FIIs purchased Rs 264 Cr, while DIIs infused Rs 113 Cr in Indian equities yesterday. Rising geopolitical uncertainty, a surge in the yield on US 10-year bonds to a 16-year high of over 4.80%, and a decrease in US Futures and a weak opening of Asian markets today, might lead to a flat opening for domestic bourses.

Nifty Outlook Today

Siddhartha Khemka Head - Retail Research and Chandan Taparia-Derivatives & Technical Analyst of Motilal Oswal said "Nifty immediate support at 19750 then 19650 zones while resistance at 19950 then 20050 zones. Now it has to continue to hold above 19750 zones, for an up move towards 19950 then 20050 zones whereas supports are placed at 19750 then 19650 zones."

Bank Nifty Outlook Today

"Bank Nifty support at 44250 then 44044 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 44250 then 44044 levels," said the analysts.

Market Outlook Today

"Weak opening in the Asian market, rising geo-political tension, surging US 10-Year bond yield to a 16-year high above 4.80% and decline in US Future, may open domestic bourses on a flat note. US Dow and Nasdaq Future declined by 0.3% each after the news that the deadly explosion at a Gaza hospital boosted tensions before the US President arrival in the region.

European stocks pared earlier declines and closed nearly flat on Tuesday in a volatile session as strong US retail sales data boosted bond yields and reinforced the case for the Federal Reserve to keep interest rates higher for longer. Asian markets opened mixed after U.S equities struggled following data reinforcing the case for the Federal Reserve to keep interest rates higher for longer. Oil climbed as the Israel-Hamas conflict intensified. Gift Nifty decline by 0.2%," said the analysts of Motilal Oswal.

Stocks To Buy Today

Siddhartha Khemka Head - Retail Research and Chandan Taparia-Derivatives & Technical Analyst of Motilal Oswal have recommended the below the stocks to buy or sell on Wednesday, 18th October 2023.

Technical Pick:

Zomato

Buy at CMP of Rs 114, stop-loss: Rs 110, target: Rs 122, duration: 2 to 3 days.

Zomato has given a trend line breakout on the daily chart and managed to close above the same. It has formed a strong bullish candle on the daily chart & perfectly respecting 20 DEMA. The momentum indicator RSI is positively placed and supports are gradually shifting higher.

Fundamental Pick:

Bajaj Finance

Buy at CMP of Rs 8093, target: Rs 9600, duration: 1 year

Bajaj Finance (BAF)'s 2QFY24 reported PAT grew 28% YoY to ~INR35.5b (in line). NII rose 30% YoY to ~INR72b. Reported total AUM grew 33% YoY and ~7.5% QoQ to INR2.9t. Customer acquisitions and the new loan trajectory have been strong.

The momentum will only get stronger with the digital ecosystem (app, web platform and full-stack payment offerings) in place. BAF should be able to offset the NIM compression in FY24 with lower operating cost ratios. We have incorporated the announced equity capital raise of ~INR100b in our estimates and expect AUM/PAT CAGR of ~29%/28% over FY23-FY26. We expect BAF to deliver an RoA/RoE of 4.8%/23% in FY26, 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.