Buy, Hold and Avoid – Buy ITC, IHCL shares; Hold SBI, Canara Bank, BoB; Avoid Indusind Bank, says analyst – Know why!

The Stock markets were trading with strength on Thursday, despite weekly expiry as the Nifty50, and the broader markets were in the green. The 50-share index was up 0.7 per cent or 133 points from the Wednesday closing price.  

Nifty Midcap 100 and Nifty Small Cap 100 indices were trading up by 0.7 per cent at 11:15 am. India VIX a measure of stock market volatility was also down 0.9 per cent. 

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Technical Analyst Nilesh Jain recommended a few stocks as top buys for gains. He also retained his view on certain stocks while suggesting an avoid on one counter. This is what he suggests. 

Stocks to Buy  

ITC share – Traditionally, considered as a slow mover, this Fast Moving Consumer Goods (FMCG) stock has been on a strong rally over the last 3-4 trading sessions. At Rs 257.30, it hit a 52-week high on the second day in a row, today. This stock was trading at Rs 256.80 on the NSE around this time, and was up 3 per cent on the intraday basis. He puts a buy for a target price of Rs 280 with a short term view and a stop loss at Rs 232. 

Another stock picked by him was The Indian Hotels Company Limited (IHCL) – a Tata Group company. After hitting its 52-week high of Rs 237.40 on the intraday basis on Thursday, it has seen some correction. It was trading at Rs 228.10, down 1.2 per cent from the last closing price on Wednesday. Buy for a target of Rs 260 and a stop loss at Rs 220, Jain said. 

Stocks to Hold – The AVP remains bullish on the Nifty PSU Banks and recommends a Hold on State Bank of India (SBI), Canara Bank and Bank of Baroda (BoB). 

Jain has recommended SBI for targets of Rs 500, Rs 520 and Rs 550. This stock was trading at Rs 487.90, up 1.3 per cent from the Wednesday closing price. The stock has hit Rs 491.90, its 52-week high today.  

Jain previously recommended Canara Bank for a price target of Rs 185, This stock was trading at Rs 192.40 around this time, up 3.1 per cent. It has hit a 52-week high of Rs 194.65 today. Jain revise the target to Rs 215 with a two-week view.  

BoB shares were trading at Rs 88.80, up over 1 per cent. He recommends a Hold for price target of Rs 100.  

Stocks to Avoid – Jain recommends an ‘Avoid’ on the Indusind Bank Limited shares at current levels. He said that the stock has moved up significantly and investors must wait for some more correction to make fresh moves. The risk-to-reward ratio is not favourable at existing levels, he added. It was trading at Rs 1171.51 on the NSE, down 1.1 per cent from the Wednesday closing price. The right levels to enter are around Rs 1120.