Top 2 stocks to buy for tomorrow: PNB Housing Finance, TVS Motor Company by Chandan Taparia - Check stop-loss, targets
Stock market today: Indian equities ended lower on Monday, 12 October, with the Nifty 50 and Sensex retreating as investors weighed the Reserve Bank of India’s efforts to stabilise the rupee against persistent concerns over high crude oil prices and the prospect of a weaker monsoon.
The Nifty 50 declined 0.7% to close at 22,363.35, while the Sensex shed 0.76% to settle at 71,924.68.
The decline followed Friday’s recovery, when both indices broke a 25-year record losing streak and rebounded from multi-year lows. However, the relief rally failed to sustain momentum, with early gains giving way to selling pressure on Monday.
Market participants are now turning their attention to India’s upcoming inflation data for fresh signals on the monetary policy trajectory, particularly after the RBI raised interest rates last week.
Chandan Taparia has recommended buying PNB Housing Finance and TVS Motor Company for tomorrow, citing bullish technical indicators, improving price structures and positive momentum. He has set a target price of ₹1,280 for PNB Housing Finance, with a stop-loss of ₹1,160, and a target of ₹4,150 for TVS Motor Company, with a stop-loss of ₹3,820.
On the Nifty options front, Chandan Taparia, Head Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services Ltd, said that the maximum call OI is at 22,600 then 22,500 strike, while the maximum put OI is at 22,300 then 22,000 strike.
“Call writing is seen at 22,400 then 22,600 strike, while Put writing is seen at 22,300 then 22,350 strike. Option data suggests a broader trading range between 21,900 and 22,800 zones, while an immediate range between 22,100 and 22,600 levels,” said Taparia.
Nifty 50 index opened on a positive note but failed to sustain above 22,650 zones with selling pressure emerging right from the first tick. Bears gained control and the index moved lower towards 22,300 zones. It formed a bearish candle on the daily chart indicating selling pressure to continue at higher levels.
“Now till it holds below 22,400 zones weakness could extend towards 22,250 then 22,100 levels while on the upside hurdles can be seen at 22,500 then 22,600 zones,” said Taparia.
Bank Nifty index opened marginally higher but failed to hold at higher levels and gradually drifted lower towards 54,700 zones in the latter part of the session. It formed a bearish candle on daily scale as selling pressure is seen at higher zones and is holding below its 20 DEMA.
“Now if it holds below 55,000 zones weakness could be seen towards 54,500 then 54,250 levels while on the upside hurdle is seen at 55,250 then 55,500 zones,” the MOFSL analyst added.
Chandan Taparia has recommended two stocks to buy or sell tomorrow. Taparia recommends buying PNB Housing Finance and TVS Motor Company shares.
Stock is in an overall uptrend and is trading near its 52-week high, highlighting sustained bullish momentum. It has formed a bullish candle and has been forming higher highs over the last four sessions, indicating consistent buying interest. The RSI is inching higher, currently at 64, reflecting strong momentum and further supporting the positive price structure.
Stock is respecting its 200 DEMA and is seeing a bounce from it, indicating buying interest at lower levels. It has negated its sequence of lower tops and lower bottoms, signalling an improvement in the overall price structure and a potential trend reversal.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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