Q2 biz update :: HDFC Bank reports 58% YoY growth in Advances; stock up 0.5%

October 4, 2023 Bruce Langford

On account of weak global cues, Indian stock market finished lower on Tuesday. Nifty 50 index lost 109 points and closed at 19,528 levels, BSE Sensex shed 316 points and ended at 65,512 mark whereas Bank Nifty index finished 185 points lower at 44,399 levels. In broad market, small-cap index surged 0.61 per cent while mid-cap index managed to end marginally higher on the previous session.

“Equity indices logged losses amid a rise in the US bond yields and moderation seen in India’s manufacturing activity to five-month low of 57.5. Nifty opened lower and remained in negative territory throughout the session to close with loss of 110 points (-0.6%) at 19,529 levels. Broader market however, ended in the green with Midcap100/Smallcap100 up 0.2%/0.5%. Except for PSU Banks, Realty, and Consumer Durables, all sectors ended in red. Auto saw profit booking after good September month sales numbers, while O&G fell following cool-off in Brent crude prices which has corrected to below 90$/barrel. On the other hand, Housing Finance stocks gained after media report that the Finance Ministry has approved a Rs60,000 crore incentive scheme for urban housing. Overall, the GST collections remained robust at Rs.1.62 lakh crores, indicating strong economic growth,” said Siddhartha Khemka, Head – Retail Research at Motilal Oswal.

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Day trading guide for stock market today

On outlook for Nifty 50 today, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, “The short term trend of Nifty continues to be negative. After showing a lack of strength during recent upside bounce, the market is now placed at the edge of downside breakout of 19,500 levels. The next lower levels to be watched at 19,225 levels and immediate resistance is placed at 19,700 levels.”

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On outlook for Bank Nifty today, Ashwin Ramani, Derivatives & Technical Analyst at SAMCO Securities said, “Bank Nifty consolidated between the 44,200 to 44,700 for the fourth consecutive day to end at 44,399, down 186 points. Strong call writing was observed at 44,500 & 44,400 Strikes today. A break below 44,250 can take the Index until 43,800 levels. The option activity at 44,300 Stike will provide cues about Intraday direction in Bank Nifty Wednesday (tomorrow) ahead of the weekly expiry on Thursday.”

“Given the global concerns of more US rate hikes along with 16-year high US 10-year bond yield and 7-month high Dollar Index, the sentiments remain dented and thus is resulting in profit booking. In the near term, we expect this weakness to persist with stock-specific action. Investors would continue to take cues from economic data to be release globally and domestically with all eyes on RBI monetary policy due on Oct 6th, Friday,” said Siddhartha Khemka of Motilal Oswal.

Nifty call put option data

On Nifty call put option data, Chinmay Barve, Head of Technical & Derivatives Research at Profitmart Securities said, “As per data shown by nseindia.com at 3.30 pm on 03 October 2023, major total Call open interest was seen at 19600, 19700 and 19800 strikes with total open interest of 203151, 216846 and 194691 contracts respectively. Major Call open interest addition was seen at 19600 and 19700 strikes which added 127536 and 82338 contracts respectively,” adding, “As per data shown by nseindia.com at 3.30 pm on 03 October 2023, major total Put open interest was seen at 19500 and 19400 strikes with total open interest of 186872 and 124268 contracts respectively. Major Put open interest addition was seen at 19500 and 19550 strikes which added 57457 and 42152 contracts respectively.”

Day trading stocks for today

On intraday stocks for today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Ganedh Dongre, Senior Manager — Technical Research at Anand Rathi and Ashish Katwa, Technical Analyst at Bonanza Portfolio — recommended six stocks to buy or sell today.

Sumeet Bagadia’s intraday stocks for today

1] Praj Industries: Buy at ₹599, target ₹625, stop loss ₹585.

Praj Industries Ltd presents a compelling opportunity in the current market environment. The stock has recently exhibited a significant technical breakout in the form of an ascending triangle pattern on the daily timeframe, bolstered by substantial trading volumes. This breakout is indicative of potential upward momentum.

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Furthermore, the stock has demonstrated its strength by closing above key moving averages, including the 20-day, 50-day, 100-day, and 200-day Exponential Moving Averages (EMA). This is a positive signal for the stock’s bullish prospects.

2] Bank of India: Buy at ₹112.80, target ₹118, stop loss ₹109.

Bank of India share is currently trading at ₹112.8. On the daily chart, the price has recently broken out of a Triangle pattern with significant trading volume. Furthermore, BANKINDIA is currently trading above critical Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, which reinforces its bullish momentum and suggests potential for further upward price movement.

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The Relative Strength Index (RSI) is currently at 69.9 and trending upwards, indicating a growing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has recently experienced a positive crossover from the oversold region. This combination of technical indicators suggests that BANKINDIA may have the potential to reach a target price of ₹118 in the near term.

Ganesh Dongre’s stocks to buy today

3] Delhivery: Buy at ₹413, target ₹430, stop loss ₹405.

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till ₹430. So, holding the support level of ₹405 this stock can bounce toward the ₹430 level in the short term. Hence, the trader can go long with a stop loss of ₹405 for the target price of ₹430.

4] HCL Tech: Buy at ₹1239, target ₹1290, stop loss ₹1220.

On the short-term chart, the stock has shown a bullish reversal pattern. So, holding the support level of ₹1220. This stock can bounce toward the ₹1290 level in the short term. Hence, the trader can go long with a stop loss of ₹1220 for the target price of ₹1290.

Ashish Katwa’s buy or sell stock

5] Cholafin: Buy at ₹1253.80 to ₹1250, target ₹1320, stop loss ₹1218.

On a Weekly time frame CHOLAFIN has given a breakout of Rectangle Pattern on the upside, indicating a positive trend in the stock. The stock has been trading below Ichimoku cloud which confirms the bullish trend. The momentum Indicator RSI is following the price action confirming the move. Hence based on the above Technical Setup a Long position can be created in CHOLAFIN with an SL of ₹1218 for an Upside target of ₹1320.

6] L&T Finance Holdings: Buy at ₹135 to ₹134.50, target ₹141, stop loss ₹132.20.

On the Four Hourly time frame, L&T FH has formed Positive price action and at the same time, the stock has given a breakout of Cup & Handle Pattern with Bullish candlestick. The stock has been trading above Ichimoku cloud which confirms the Bullish trend. A momentum indicator RSI (14) is reading above 60 levels, which suggests a bullish move for the near term. Hence based on the above Technical Setup a Long position can be created in L&T FH with an SL of ₹132.20 for an Upside target of ₹141.

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