Siddhartha Khemka of Motilal Oswal Is Bullish On These 2 Stocks To Buy On 27th, Oct

Thursday was the sixth straight day that the Indian stock market continued to book profits, with Nifty ending close to the day's low at 18857 levels (-1.4%) and falling below the 19k mark. Yesterday, US markets fell as much as 0.8-1.8% on a mixed set of Q2 results. With mixed Q2 statistics, the Indian stock market is anticipated to open in the green today due to a strong start in the Asian markets and a rebound in the US Future.

Nifty Outlook Today

Siddhartha Khemka Head - Retail Research and Chandan Taparia-Derivatives & Technical Analyst of Motilal Oswal said, "Nifty immediate support at 18750 then 18650 zones while resistance at 19050 then 19150 zones. Now till it holds below 18888 zones, weakness could be seen towards 18750 then 18650 zones whereas hurdles are placed at 19050 then 19150 zones."

Bank Nifty Outlook Today

"Bank Nifty support at 42000 then 41750 zones while resistance at 42750 then 43000 zones. Now till it holds 42500 zones weakness could be seen towards 42000 then 41750 levels while on the upside hurdle is seen at 42750 then 43000 zones," the analysts said.

Market Outlook Today

The equity research analysts of Motilal Oswal said domestic equity benchmark index will open on a positive note on account of bounced back US Future with solid gain and positive opening in the Asian markets.

"Asian Index and US Future gained up to 1% boosted sentiment after the US 10-year bond yield cooling down by 10 bps to 4.85%, strong quarterly results announced by Amazon.com Inc. and Intel Corp. in the post market and US Q3 GDP growth reported highest since 2021 at 4.9.

Good quarterly results and strong domestic economy will be big positive for the market sentiment. Technically, Nifty is hovering near its crucial 200-DEMA level at 18800. Rollover in Nifty stood at 83.4%, which is higher than its quarterly average of 79%. Rollover in Bank Nifty stood at 79.3%, which is lower than its quarterly average of 80.7%," they further added.

Stocks To Buy Today

Technical Pick:

Angel One

Buy at CMP of Rs 2413, stop-loss: Rs 2350, target: Rs 2500, duration: 2 to 3 days.

Angel One is in overall uptrend and holding gains in spite of broader market weakness. Breakout is supported by noticeable volumes and it has managed to give the highest daily close ever. The momentum indicators RSI is positively placed and supports are gradually shifting higher.

Fundamental Pick:

Canara Bank

Buy at CMP of Rs 360, target price: Rs 440, duration: 1 year

Canara Bank (CBK) reported a healthy quarter, with PAT up 43% YoY to INR36.1b (in line), driven by lower provisions. NII grew 20% YoY (in line), while margins moderated 5bp QoQ to 3.0%. On the business front, loan book grew ~13% YoY (4% QoQ), driven by healthy traction in retail and corporate loans.

Deposits grew 9% YoY (3% QoQ) to INR12.3t, led by 11% YoY growth in term deposits. Asset quality ratios have improved and the management expects to further reduce net NPAs at an accelerated pace. SMA book moderated to 0.7% in 2QFY24 vs. 1.1% in 1QFY24. We expect CBK to deliver FY25 RoA/RoE of 1.1%/17.6%, 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.