Top Stock Recommendations: Sagar Doshi of Nuvama recommends buying IOC, Shree Renuka Sugars, and Canara Bank today

  • Top Stock Recommendations: Sagar Doshi of Nuvama Professional Clients Group recommends buying these three stocks today - Indian Oil Corporation Ltd (IOC), Shree Renuka Sugars Ltd, and Canara Bank.

Dhanya Nagasundaram
Published21 Aug 2024, 09:59 AM IST
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Top Stock Recommendations: Sagar Doshi of Nuvama Professional Clients Group recommends buying these three stocks today - Indian Oil Corporation Ltd (IOC), Shree Renuka Sugars Ltd, and Canara Bank.
Top Stock Recommendations: Sagar Doshi of Nuvama Professional Clients Group recommends buying these three stocks today - Indian Oil Corporation Ltd (IOC), Shree Renuka Sugars Ltd, and Canara Bank.

Stock Market News: After recording gains for four straight sessions due to lowering concerns about a US recession, the domestic benchmark indices, the Sensex and the Nift 50, began Wednesday's trading on a flat note. Analysts had anticipated profit taking following the recent rise.

At 9:53 IST, the BSE Sensex was down 0.20% to 80,642.23, while the blue-chip NSE Nifty 50 index was down 0.05% at 24,686.85.

After a recent surge, several Asian markets had a day of declines. Investors are now waiting for details on the trajectory of rate cuts in the minutes of the most recent US Federal Reserve policy meeting and Chair Jerome Powell's speech, which is scheduled for later this week.

 

Also Read | Nifty 50, Sensex end higher; investors earn over ₹2 lakh crore in a day

A significant trend in the market at the moment, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, is the movement in consumer preferences from overpriced to moderately valued categories. Profit booking is occurring in expensive sectors such as defense-related companies and railways, while value purchasing is occurring in attractively valued financials. This is a positive trend that is probably here to stay. Prices cannot continually rise. A typical tendency is reversion to the mean. FII selling and DII buying are still prevalent in the market.

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

Nifty 50 has broken out from its two weeks consolidation between 23,900 – 24,500. Daily charts suggest that the index is marching forward to create a fresh all time high in trade. Previous resistance of 24,500 is now likely to act as support incase of intraday drawdown on the index. Nifty 50 has reclaimed back above its 20 day EMA and is likely to take support on the same in case a pullback in the ongoing rally is expected to be seen.

Also Read | Stocks to Watch: L&T, Tata Group cos, Cyient, telecom stocks, HG Infra

Bank Nifty

Bank Nifty has closed at the highest level in the past 2 weeks now ending its two weeks sideways consolidation. Daily charts suggest Bank Nifty can start to outperform Nifty once the index crosses 51,300 on the upside. For now 50,300 is likely to act as support on the downside while upside has opened for 51,300 / 51,800.

Top Stock Recommendations by Sagar Doshi

On top stock recommendations for Wednesday, Sagar Doshi has recommended three stocks:

Indian Oil Corporation Ltd (IOC) (BUY) : LCP : 172.23; Stop Loss : 164.80; Target Price: 184.80

According to Sagar, higher low formations have been witnessed on daily charts of IOC with the stock closing above its previous day’s high for the past 3 sessions consecutively. Along with this, IOC has also closed at a two week high indicating strength from the state owned OMC space. Another 6-8% upside is likely to unfold on the stock as the catch up to its peers is visible on stocks wherein Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) are already at life time highs.

Also Read | Indian stock market: 7 key things that changed for market overnight

Shree Renuka Sugars Ltd (BUY) : LCP : 48.46; Stop Loss: 46.20; Target Price : 52.70

Doshi stated that a higher low formation on charts of Renuka has pushed the stock to fresh two week high. A sharp upward sloping trendline connecting lows of June – Aug has been actively arresting any fall on the stock. 200 DMA has been reclaimed earlier this week which suggest further upside on the stock. Sectoral leaders on the ongoing ethanol play in sugar companies have also reached to fresh highs. A follow up to the tune of 6-8% in likely to be on cards.

Canara Bank (BUY ) : LCP : 111.36; Stop Loss : 108.10; Target Price : 118.80

According to Doshi, Canara Bank has taken support at its 200 DMA twice this month and has been bouncing from the same. A fresh breakout is awaited once the stock crosses 112.80 on the upside which could allow short covering on the stock as it breaks out from a sloping trendline which has been in place for the past 10 weeks now. On studying lower timeframe charts suggest that the stock has given a breakout of bullish cup and handle pattern on hourly charts. This suggest another run up of 6-8% on charts of Canara Bank.

Also Read | Buy or sell: Vaishali Parekh recommends three stocks to buy today — August 21

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

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First Published:21 Aug 2024, 09:59 AM IST
Business NewsMarketsStock MarketsTop Stock Recommendations: Sagar Doshi of Nuvama recommends buying IOC, Shree Renuka Sugars, and Canara Bank today

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