Vinay Rajani of HDFC Securities recommends buying these two stocks today

Bank of Baroda stock price has broken out from the downward sloping trend line on the daily chart

Nifty erased a large portion of previous session losses on November 05 and ended on strong note. A sharp recovery post noon saw the markets bouncing up led by Metal, Oil & Gas and Bank stocks. Nifty formed a long bull candle that seems like a bullish piercing line pattern.  The underlying short-term down trend of Nifty is on the verge of reversal. A decisive move above 24,498 levels could open up a fresh upmove in the market. Any weakness from here is expected to drag Nifty down to 23,800 levels again.

  Buy Bank of Baroda (257.50): | Target Rs. 290| Stop-loss Rs 234

 

Stock price has broken out from the downward sloping trend line on the daily chart. Stock price has risen with the jump in volumes. Stock is placed above all important moving averages, indicating bullish trend on all time frames. PSU Bank Index has started outperforming for last couple of trading sessions. Indicators and oscillators have turned bullish on the daily charts

  Buy Bank Of Maharashtra (55.43): | Target Rs. 59 | Stop-loss Rs 52

After three session’s of consolidation, stock resumed its uptrend. Stock found support on 20 days SMA and bounced back. PSU bank index has been outperforming for last one week and that is expected to continue. Daily RSI has reached above benchmark level of 50, which indicates sustainable uptrend.  (Vinay Rajani, senior technical and derivative analyst at HDFC Securities. Views expressed are his own.)