Podcast | Stock picks of the day: Market likely to take cues from FOMC outcome

Ajit Mishra

The Indian markets traded with a positive bias throughout the session amid high intraday volatility. The Nifty index ended with gains of 0.2 percent at 10,841 levels.

The broader markets performed in-line with the benchmark as both BSE Midcap and Smallcap ended with gains of 0.4 percent and 0.3 percent respectively.

All the sectoral indices ended on a positive note with Realty, Metal and Oil & Gas being the top gainers.

The correction in crude oil prices has definitely provided respite to investors. Nonetheless, geo-political developments would still be one of the key factors on investors’ radar as any further escalation would have an adverse impact on markets and economy.

Apart from this, the FOMC meet outcome would be a key factor as there is a wide expectation of a rate cut. However, commentary on growth and rate outlook would be crucial.

On the domestic front, the recommendations of GST Fitment committee to not reduce rates in certain sectors has impacted sentiments, however, the final decision would be taken at the GST Council meeting on September 20.

Here is a list of top two stocks which could give 3-7 percent return in the next three-four weeks:

Titan Company: Buy | LTP: Rs 1,161 | Target: Rs 1,200| Stop-Loss: Rs 1,110 | Upside 3 percent

Titan Company posted a fresh breakout on September 16, from its two-month long consolidation phase and is likely to see fresh up move ahead.

The current chart formation combined with the positioning of confirmation indicators is further adding to the positivity. We advise creating fresh longs in the mentioned zone Rs 1,130-1,140.

Jubilant Foodworks: Buy | LTP: Rs 1,243 | Target: Rs 1,340 | Stop-Loss: Rs 1,220 | Upside 7 percent
Jubilant FoodWorks has been swiftly rebounding for the last one month, after retesting its crucial support zone of 100-EMA on the weekly chart around Rs 1,075 levels.

It has decisively crossed its resistance hurdle of long-term moving averages (200 EMA) on the daily chart of late, supported with the rise in volume. All indications are in favor of further up move in the near future.

We advise traders to use this opportunity and initiate fresh longs within Rs 1,250-1,260 zone.

(The author is Vice President, Research, Religare Broking Ltd)

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