Nifty outlook and trading ideas by CapitalVia: Buy Gruh Fin, Bank of Baroda

Technical Calls by Gaurav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor

Nifty View
 

If we take a look at Bond Yield, India’s 10-year government bond rose over 10 basis points (bps) to hit a six-week high on Wednesday, August 14th. The growing uncertainties about the proposed $10-billion overseas bond program and concerns over higher borrowing from the domestic market (if the offshore plan fails), leads to volatility in Nifty and talks of a fiscal stimulus have provoked hesitations of a bond surplus this fiscal, leading to profit-taking and price corrections. Nifty on Friday, August 16th closed at 11,047.80. From Nifty weekly chart we are expecting that Nifty is taking a firm support of Exponential moving average EMA100. In the coming week we may see a marginal gain in the index in the range of previous week’s high that is 11181.50 and 11300. 

Two stocks that look attractive to us in such a condition are:

BUY BANK OF BARODA (Rs 102.50)
 

Target: Rs 112
 

Stop loss: Rs 96.40

The level of 100 is a major support for Bank Baroda in daily chart and by using Bollinger Band we are expecting an upside movement. We recommend buying the stock at 102.50 for the target of Rs 112, keeping a stop loss at Rs 96.40 on closing basis.

BUY GRUH FINANCE (Rs264)
 

Target: Rs 280
 

Stop loss: Rs 254

The stock is trading near highs of last 6 days with insider bar in daily chart. We recommend buying the stock at 264 for the target of Rs 280, keeping a stop loss at Rs 254 on closing basis.

==================================

Disclaimer: The analyst does not hold positions in any of the stocks mentioned above.