Stocks to buy: Sagar Doshi suggests Hindalco, Indian Oil, NHPC shares to buy

Stock market today: Indian stock markets opened slightly higher on Wednesday, as investors looked for dovish cues from the Reserve Bank of India's upcoming policy announcement to address concerns around U.S. tariffs and increased H-1B visa fees, while generally expecting rates to stay the same.

At 9:18 IST, the Nifty 50 climbed by 0.11% to reach 24,639.2, whereas the BSE Sensex increased by 0.09% to 80,349.55. The RBI's monetary policy announcement is scheduled for 10:00 IST, with almost three-quarters of economists predicting rates will not change, according to reports.

The central bank maintained its rates during the August meeting after an unexpected, upfront 50-basis-point rate decrease in June.

Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group

Nifty 50

Nifty 50 has been ending with cuts for the past 8 trading days as the index raced towards its monthly expiry clubbed with monthly and quarterly closing on charts. With a truncated week this time and BSE Sensex expiry preponed to today due to a trading holiday tomorrow, a rangebound trade between 24,550 – 24,850 can play out for the rest of this week.

Bank Nifty

On the contrary, Bank Nifty has been acting stronger from the start of this week. It has now developed a short term range between 53,800 – 54,800, while a short covering move of 1,000 pts can unfold once the index starts sustaining above 54,900.

Stocks To Buy on Wednesday

On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks - Hindalco Industries Ltd, Indian Oil Corporation Ltd (IOC), and NHPC Ltd.

Hindalco Industries (BUY): LCP: ₹762; SL: ₹730; TGT: ₹820

With Hindalco Industries share price on track to end at the highest ever weekly closing on charts, momentum trigger is likely to unfold in the current derivative series on the stock given the strong tailwinds market is witnessing in metal names. On daily charts as well there is a flag breakout indicating an 8% to 10% upside.

IOC (BUY): LCP: ₹149.79; SL: ₹143; TGT: ₹162

A sloping cup and handle breakout is seen on daily charts on IOC which had been under formation for the past 1 year now. Stock has seen a 10% rebounded after testing support near its 200 DMA in the past 30 trading days. Given the current bullish structure on charts, an up move towards 158 / 163 now resumes from here on.

NHPC (BUY): LCP: ₹86.32; SL: ₹83.50; TGT: ₹92

A 15 month sloping trendline breakout has been witnessed last week on the counter, while a retest on the same has been met. Upmove for another 8-10% upside can now resume given the sectoral flavour in the current series being played out in this market.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.