Top Stock Picks: Sagar Doshi from Nuvama Recommends Buying IOC, Shree Renuka Sugars, and Canara Bank Today

After four days of gains due to reduced worries about a US recession, the Indian stock market opened on a flat note on Wednesday. The Sensex and Nifty 50 started the day with slight declines, which was expected by analysts as some investors are taking profits after the recent rise.

As of 9:53 AM IST, the BSE Sensex was down by 0.20% at 80,642.23, while the NSE Nifty 50 was slightly down by 0.05% at 24,686.85.

Many Asian markets also saw declines today, as investors are waiting for updates from the US Federal Reserve about potential interest rate cuts, which will be discussed in an upcoming speech by Chair Jerome Powell.

Market Trend:

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that a key trend in the market right now is a shift in consumer interest from expensive sectors to more reasonably priced ones. Profit-taking is happening in sectors like defense and railways, while investors are buying into well-valued financial stocks. This shift is expected to continue as prices tend to return to their average over time.

Nifty 50 Outlook by Sagar Doshi, Senior Vice President – Research, Nuvama Professional Clients Group

Sagar Doshi noted that the Nifty 50 index has broken out of a two-week consolidation between 23,900 and 24,500. The daily charts suggest that the index is moving towards a new all-time high. The previous resistance level of 24,500 is now likely to act as support during any intraday pullback. The Nifty 50 has also reclaimed its 20-day EMA, which should provide support if there is a pullback in the ongoing rally.

Bank Nifty Outlook

The Bank Nifty has closed at its highest level in the past two weeks, ending its sideways consolidation. The daily charts indicate that the Bank Nifty could start outperforming the Nifty once it crosses 51,300. For now, the 50,300 level is likely to act as support, while the upside potential is open to 51,300 or even 51,800.

Top Stock Recommendations by Sagar Doshi

Sagar Doshi has recommended three stocks for today:

1. Indian Oil Corporation Ltd (IOC)
   • Buy at ₹172.23
   • Stop Loss: ₹164.80
   • Target Price: ₹184.80
   • Doshi notes that IOC has shown strength on its daily charts, closing above its previous day’s high for three consecutive sessions. The stock has reached a two-week high, suggesting a potential 6-8% upside as it catches up with peers like HPCL and BPCL, which are already at lifetime highs.
     
2. Shree Renuka Sugars Ltd
   • Buy at ₹48.46
   • Stop Loss: ₹46.20
   • Target Price: ₹52.70
   • Doshi highlights that Renuka Sugars has reached a fresh two-week high with a strong upward trendline supporting it since June. The stock has reclaimed its 200 DMA, suggesting further gains, with a potential 6-8% upside as sugar sector leaders in the ethanol play also reach new highs.
     
3. Canara Bank
   • Buy at ₹111.36
   • Stop Loss: ₹108.10
   • Target Price: ₹118.80
   • Doshi mentions that Canara Bank has twice found support at its 200 DMA this month and is bouncing back. A fresh breakout is expected once the stock crosses ₹112.80, which could trigger short covering and a 6-8% upside. The stock has also shown a bullish pattern on hourly charts, indicating potential further gains.