5 Stocks to Buy Today: September 17, 2021
Every morning our analysts scan through the markets universe and chose the best momentum stocks to buy today. The stocks are recommended from a wider list of momentum stocks and only the best ones make it to the top 5 list. We also update on the performance of earlier recommendation every morning to help you with your trading journey. Read on to know the momentum stocks to buy today. The average holding period could be between 7-10 days on average.
List of 5 Stocks to Buy Today
1. Kolte-Patil Developers Ltd (KOLTEPATIL)
KOLTEPATIL Stock Details for Today:
- Current Market Price: Rs.312
- Stop Loss: Rs.303
- Target 1: Rs.324
- Target 2: Rs.340
- Holding Period: 10 days
5paisa Recommendation: Our technical analysts observe a strong volume in this stock.
2. Cholamandalam Investment and Fin Co Ltd (CHOLAFIN)
CHOLAFIN Stock Details for Today:
- Current Market Price: Rs. 609
- Stop Loss: Rs. 590
- Target 1: Rs. 628
- Target 2: Rs. 660
- Holding Period: 10 days
5paisa Recommendation: Our technical analysts observed that sideways move in this stock is expected to end.
3. Clean Science and Technology Ltd (CLEAN)
CLEAN Stock Details for Today:
- Current Market Price: Rs. 1,948
- Stop Loss: Rs. 1,900
- Target 1: Rs. 2,030
- Target 2: Rs. 2,150
- Holding Period: 10 days
5paisa Recommendation: Our technical analysts observed that further buying is expected in CLEAN.
4. Avenue Supermarts Ltd (DMART)
DMART Stock Details for Today:
- Current Market Price: Rs. 4,085
- Stop Loss: Rs. 3,970
- Target 1: Rs. 4,200
- Target 2: Rs. 4,430
- Holding Period: 10 days
5paisa Recommendation: Momentum is on positive side, thus making DMART to the top stocks to buy list.
5. HLE Glascoat Ltd (HLEGLAS)
HLEGLAS Stock Details for Today:
- Current Market Price: Rs. 5,108
- Stop Loss: Rs. 4,980
- Target 1: Rs. 5.350
- Holding Period: 10 days
5paisa Recommendation: Our technical analysts observed strong volumes in HLEGLAS. Thus making stock as one of our strongest recommended Stocks to Buy Today.
Share Market Today
SGX Nifty indicates positive opening for Indian markets. SGX Nifty is at 17,698.80 levels, higher 87.75 points. (Updated at 7:44 AM)..
US markets ended in the red after a volatile session as Dow Jones recovered from lows of the day down 275 to close lower by 60 points, while Nasdaq managed to close in the green.
US bond yields closed higher at 1.34% while US$ also closed higher at 92.88 as Gold prices edge lower for 3rd day running.
Asian markets opened mixed with the Japanese 'Nikkei' trading higher by 100 points even as other indices consolidated.
The Hang Seng index for Hong Kong stocks continues to underperform the region as Chinese stocks are listed under pressure as ETF outflows see money chase Indian equities.
Taiwan and South Korean markets also move sideways as semi-conductor manufacturers seek more time to raise output.
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BTST/STBT Trading Tips for Today: 17th September, 2021
5paisa analysts bring the best intraday ideas, short-term ideas and long-term ideas for you. In the morning we provide best momentum stocks to buy today, while in the last trading hour we provide buy today sell tomorrow (BTST) ideas.
BTST/STBT Trading Ideas for Today
1. STBT: UPL SEP FUT
- Current Market Price: Rs.737
- Stop Loss: Rs.745
- Target: Rs.720
2. STBT: LT SEP FUT
- Current Market Price: Rs.1,711
- Stop Loss: Rs.1,723
- Target: Rs.1,687
3. BTST: TATAELEXSI
- Current Market Price: Rs.5,315
- Stop Loss: Rs.5,275
- Target: Rs.5,410
4. STBT: AMBUJACEM SEP FUT
- Current Market Price: Rs.422
- Stop Loss: Rs426
- Target: Rs.410
5. STBT: ABFRL SEP FUT
- Current Market Price: Rs.212
- Stop Loss: Rs.215
- Target: Rs.206
What explains the huge rally in Zen Technologies stock?
On 20th August 2021, the stock of Zen Technologies was trading at Rs.79 per share. Less than a month later, the stock is trading at Rs.193, giving returns of 144% in less than a month. What is surprising about this sudden rally is that over the last five years, the stock of Zen Technologies did nothing. In fact, if you look at 5-year returns of Zen, it is at the same level of price appreciation as in the last 1 month. What changed for the stock?
The rally in the Zen Technologies stock began with the company receiving a huge Rs.155 crore order from the Indian Air Force for the supply of Counter Unmanned Aircraft Systems (CUAS). Zen specializes in the manufacture of drones and anti-drone systems as well as drone support systems. The Rs.155 crore order was the largest single order that Zen Technologies had received. That was also the time when Zen revealed its outstanding order book position at Rs.402 crore.
However, the big gamechanger for the government hinting at combining the drone PLI scheme with the auto PLI scheme. When the government announced the automobile performance linked incentive (PLI) scheme, it also included Rs.120 crore allocation for incentives to drones. This was a gamechanger as the incentive amount was bigger than the total revenues of drone companies combined.
However, the government expects the drone revenues to grow from Rs.60 crore currently to Rs.900 crore in the next 3 years on the strength of the PLI scheme for drones. The PLI scheme will cover manufacture of drones, drone components and anti-drone systems. Since Zen Technologies is present in all the three segments, it is expected to be a big beneficiary of the Drone PLI scheme.
The incentives for drones will be 20% of the value addition, which is likely to add to revenues and margins of Zen Technologies substantially. That seems to have clearly enthused the stock.
Set up of National Asset Reconstruction Company (NARCL) for Bad Bank
On 16th September, the government announced plans for a Bad Bank with assured government guarantees of Rs.30,600 crore. The structure will be something like this. There will be the National Asset Reconstruction Company (NARCL) which will hold and manage the assets. Then there will be the India Debt Reconstruction Company (IDRCL), which will handle the operational part like appointing consultants, turnaround specialists, assessing the net asset value of the loan etc.
The Bad Bank will be implemented in 2 phases. In the first phase, Rs.90,000 crore of loans will be taken and in the second phase Rs.110,000 crore of stressed loans will be assumed. The total loans of Rs.200,000 crore will be first assessed for NAV. Based on the NAV, the NARCL will pay out 15% in cash and the balance 85% in the form of security receipts (SR). These SRs will be guaranteed for their value by the government up to Rs.30,600 crore.
However, the government guarantee comes with 2 conditions. Firstly, the entire resolution will have to be completed within a period of 5 years, failing which the guarantee will be revoked by the government. Hence this puts a sense of urgency. Secondly, the guarantee will require the company to file for liquidation. This will ensure that they fall back upon the government guarantee only in extreme cases.
The timing of the Bad Bank coincides with the spurt in recoveries. The Finance Minister has confirmed that banks have recovered over Rs.5 trillion in the last 6 years of which over 60% were recovered in the last 3 years. The time is ripe for pushing this Bad Bank idea through so that future resolutions can be smoother.
How will it impact banking stocks. PSU banks with relatively better asset quality like Bank of Baroda and Indian Overseas Bank, that can realize good NAV on their stressed loan books, will be the big beneficiaries of this Bad Bank move.
Weekly Stock Market Wrap Up - 20th September
Nifty closed on a negative note at 0.25% near 17585.15 levels on friday. The market breath was bearish with 15 advances against 34 declines and 1 remain unchanged. FMCG, IT, Metals, Pharma, PSU Banks, Realty index ended the session on negative note while Auto, Financial services, Media, private banks ended the session in green zone.
Nifty bank closed on a positive note near 37811.95 levels. Kotakbank, hdfcbank, axisbank were top gainers while PNB, BANDANBNK, IDFCFIRSTB were top losers.
Weekly Top 3 Gainers (13th Sept - 17th Sept)
Weekly Top 3 Losers (13th Sept - 17th Sept)
Weekly Chart- Nifty50
For Nifty ended the day with red candle on daily chart but on weekly chart nifty formed bullish candle. On daily chart it formed a dark cloud-cover sort of candle pattern buyers push the price higher at the open, but sellers take over later in the session and push the price sharply lower. This shift from buying to selling indicates that a price reversal to the downside could be forthcoming.
Although on weekly time frame it ended the weekly session on positive but we can expect some fight between bulls and bears, every dip would be a buying opportunity.
Nifty find support near 17250 while 17800 will act as a psychological resistance.
Weekly Chart - BankNifty
RSI plotted on the weekly time frame, remains above the 50 mark and is drifting higher, indicating the bulls are trying to maintain their hold on the index. Prices had given breakout of its resistance zone and managed to close above it which further indicates buying in coming session.
Banknifty support is placed near 36150 while on higher side 38500 will act as an immediate resistance.
Call For The Week:
CALL : BUY RELIGARE ABOVE 175 SL 165 TGT 185 or higher levels.
RELIGARE has been moving higher recently and intact in strong uptrend. In the previous session it closed with a gain of 1.96%.
On the daily chart, in the previous session the stock formed a bullish candle. We can see rounding bottom pattern has formed. A close above 175 will confirm breakout of rounding bottom pattern. Price is trading above the ichimoku cloud which indicate that the short term bias is bullish.
On the hourly chart, parabolic SAR which used to determine the price direction as well as draw attention to when the price direction is changing. A series of dots placed below the price which is deemed to be a bullish signal. Closest support is placed at 165.
In short, trend for this stock is positive. A break above 175 can lift price higher towards 183-185 levels as long as 165 holds on the downside.
Why did FIIs Invest Rs.16,300 crore in September?
During the month up to 17-September, the foreign institutional investors (FIIs) infused Rs.16,305 crore into Indian markets. Out of this, the FIIs infused Rs.11,287 crore into equities and Rs.5,018 crore into debt. This is almost equal to the total infusion by the FIIs in the entire month of August. What has driven the surge in FII flows into India? After all, the IPO scene in September is hardly as aggressive as it was in August.
FII inflows into debt were driven by 3 reasons. Firstly, there is the stable to strong rupee, which ensures that returns are protected or enhanced in dollar terms. Secondly, the yield spread between Indian bonds and US bonds widened by more than 480 basis points due to a sharp fall in US bond yields. Thirdly, FIIs are also being attracted to Indian bonds on hopes that they will be included in the JP Morgan Bond Index, encouraging passive flows.
In the last few days, a series of far-reaching reforms pushed up FII appetite for Indian equities. The government announced an aggressive Rs.26,000 crore automobile & drone PLI scheme and set in motion the creation of a bad bank to take over stressed banking assets. In addition, the Telecom Relief Policy was a pleasant surprise while the recent aviation capacity boost also enthused FII investors.
Also Read: Which auto stocks gain from Rs.26,058 crore PLI scheme?
However, flows are not restricted to India alone as most Asian emerging markets saw robust flows in September. For instance, FIIs infused $2.60 billion into Taiwan, $535 million into South Korea and $290 billion into Thailand. Even Indonesia got $162 billion of FII inflows in September. Even as valuation risks are still prominent for EMs, FIIs see these EMs as compelling alpha stories.
There are two events to watch out for. The FOMC meets on 21st and 22nd September and is expected to give a timeline for taper. The likely Evergrande implosion in China is also an event that could have negative implications for Asian EMs, including India. That may set the tone for the coming weeks.