Paytm, DLF & Canara Bank: What Rajesh Palviya of Axis Securities says on these 3 stocks

Rajesh Palviya, Head Technical Research at Axis Securities, on Thursday said Nifty's overall structure looked bullish. "We may see some short-covering in Nifty and the index can also scale its fresh all-time high level. As of now, buy-on-dip will be the strategy until Nifty does not give up 21,750 mark," Palviya told Business Today TV. On the stock-specific front, the market expert selected DLF Ltd as one of his top picks for the day.

"Very strong action is taking place in DLF. The stock can continue its upward run further. Possible targets would be Rs 860-870 on a positional basis. Stop loss will be at Rs 810," he stated. DLF shares were last seen trading 0.02 per cent up at Rs 828 today.

The other stock which the analyst suggested was Canara Bank Ltd. "Looking at the overall structure, Canara Bank can scale up to next potential targets of Rs 575-585. Stop loss would be at Rs 535," he mentioned. The PSU bank's scrip traded 1.90 per cent higher at Rs 564.20.

In response to query on One 97 Communications Ltd (Paytm's parent), Palviya said retail investors can avoid this stock at this moment due to high volatility. "For Paytm, Rs 550 is a key level on the higher side to be watched out for. Until the scrip crosses the said level, some supply pressure could be expected," he said.

Paytm's counter has been under tremendous pressure since Reserve Bank of India (RBI) announced restrictions on Paytm Payments' operations amid persistent non-compliances and continued material supervisory concerns.

Meanwhile, Indian equity benchmarks were up today, led by gains in state-owned lenders and energy stocks. Broader markets (mid- and small-cap shares) were also up.

12 out of the 15 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty PSU Bank and Nifty Oil & Gas were outperforming the NSE platform by rising as much as 1.40 per cent and 0.94 per cent, respectively. However, Nifty Realty and Nifty FMCG slipped 0.50 per cent and 0.22 per cent.

On the stock-specific front, PowerGrid was the top gainer in the Nifty pack as the stock soared 5.09 per cent to trade at Rs 281.6. BPCL, IndusInd Bank, SBI and HCL Tech rose up to 2.85 per cent.

In contrast, Maruti, Tata Consumer Products, Britannia, Bajaj Finance and Eicher Motors were among the top losers on Nifty50.

The overall market breadth was positive as 1,906 shares were advancing while 1,065 were declining on BSE.

Foreign institutional investors (FIIs) sold Rs 1,691.02 crore worth of shares on a net basis during the previous session while domestic institutional investors (DIIs) purchased Rs 327.73 crore worth of shares, exchange data showed.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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