InvestorQ : Do you have any stock buying ideas for 04 December ahead of the monetary policy announcement?
Niti Shenoi made post

Do you have any stock buying ideas for 04 December ahead of the monetary policy announcement?

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diksha shah answered.
6 months ago
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Let me clarify that there are really no stock buying ideas ahead of the monetary policy. I do not think that the policy will have any profound impact on the markets except creating some short term volatility as the policy options for the RBI are fairly limited.

Normally, as a matter of policy, it is best to avoid buying fresh stocks on the last day of the week. However, this week you can make an exception as positions are light and the undertone appears to be strong. Here are two stocks for the short term trade.

· You can buy PSU power major NTPC at Rs.98 for short term targets of Rs.115 in the next 1-2 months. There is a general re-rating happening across profitable power stocks and NTPC also offers a good dividend yield story.

· The second stock for buying is a momentum stock after the ban on digital and credit transactions on HDFC Bank. The big beneficiary would the second largest card issuer, be SBI Cards. Buy SBI Cards at Rs.840 for target of Rs.900 in 1 month.

I would likely to broadly sound a word of caution here as markets may be two-faced. Traders need to digest RBI policy, there will be profit booking and US has sounded logistic COVID concerns. Strong support and low VIX could help for the time being!

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