Stocks To Buy Today, Oct 20: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday

Both major indices had substantial gains in the previous week, with the Sensex rising 1,451.37 points, or 1.76%, to close at 83,952.19 and the Nifty rising 1.68% to conclude at 25,709.85, extending the equity markets' winning run for the third consecutive week. Market watchers will first respond to quarterly earnings from major players like Reliance Industries, HDFC Bank, and ICICI Bank during the holiday-shortened week beginning on October 20. On October 21, however, the one-hour Diwali Special Muhurat Trading session, which marks the start of Samvat 2082, will be closely monitored by traders.

Nifty Outlook Today

"Nifty index has confirmed its breakout with strong follow-through buying momentum, sustaining its three-week winning run while maintaining a higher high-higher low pattern. Persistent put writing at at-the-money strikes further underscores traders' confidence in the ongoing uptrend. A sustained move above the 25,800 resistance zone could trigger further buying interest and short-covering activity, potentially propelling the index towards the 26,000 mark in the near term," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

"Conversely, immediate support is seen at 25,500-25,400, where buying demand is likely to cushion any short-term dips. As long as the index trades above this critical support cluster, the broader trend remains decisively bullish. A "Buy-on-Dips" approach continues to be the preferred strategy, with a convincing close above 25,800 likely to unleash the next leg of the uptrend," the analyst added.

Bank Nifty Outlook Today

"Nifty Bank index has achieved a fresh all-time high, confirming a strong breakout supported by follow-through buying momentum. The index continues to demonstrate sustained strength, notching its third straight positive weekly close, coupled with a higher high-higher low price structure that signals an intact uptrend. Persistent put writing at at-the-money and slightly out-of-the-money strikes further reinforces traders' conviction in the ongoing bullish phase," commented Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

"A decisive move above the 58,000 resistance zone could trigger additional long buildup and short covering, potentially propelling the index toward the 58,500 mark in the near term. On the downside, immediate support lies between 57,200-57,300, where buying demand is expected to limit any corrective moves," he added.

"As long as the index trades above the 57,200 zone, the broader outlook remains firmly bullish. A "Buy-on-Dips" strategy continues to be the most favourable approach, with a sustained close above 58,000 likely to unfold the next leg of the uptrend," Dhupesh Dhameja further stated.

Stocks To Buy Today

On the occasion of Choti Diwali, Mehta Equities Ltd's technical analyst Riyank Arora recommended buying two stocks on Monday, October 20.

TVS Motor

Buy | CMP: Rs 3,654 | SL: Rs 3,560 | Target: Rs 3,800 / Rs 3,880

TVS Motor remains in a strong uptrend with consistent higher highs and higher lows formation. The stock is trading well above its key moving averages, supported by strong delivery volumes. Sustaining above ₹3,654 could lead to a rally toward ₹3,800 and ₹3,880. Momentum indicators remain positive, and traders should maintain a stop-loss at ₹3,560 to protect against short-term volatility.

Godrej Properties

Buy | CMP: Rs 2,236 | SL: Rs 2,180 | Target: Rs 2,350 / Rs 2,420

Godrej Properties has shown renewed buying interest near its support zone and is trading above major moving averages. The price action indicates accumulation, with RSI trending upward. Sustaining above ₹2,236 may push the stock toward ₹2,350 and ₹2,420 in the coming sessions. Traders may look to buy on dips, keeping ₹2,180 as a strict stop-loss to manage downside risk.'

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