11.5-22% Dividends: NHPC, SJVN, ITDC Recommended To Buy On February 15; Prabhudas Sets Intraday Target

On Thursday, three dividend-paying stocks are recommended to buy. Two of them will turn ex-dividend later this month. Prabhudas Lilladher selects these three stocks to fetch returns in an intraday trade. They are NHPC, SJVN and ITDC. Broadly, the Indian stock market will be influenced by the last-leg of Q3 earnings, fears of rate cut not happening in the near term, inflation woes, and global trends.

On February 15, Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher expects Nifty to have a support at 21,700 and resistance around 22,000. While Bank Nifty is likely to have support and resistance around 45,500 and 46,500 respectively.

Koothupalakkal recommends buying three stocks on Thursday. They are:

- BUY NHPC cmp 88.55 Stop Loss 86 Target 92

NHPC has approved an interim dividend of Rs 1.40 per share on the face value of paid-up equity shares of Rs 10/- each for the financial year 2023-24. In percentage terms, the dividend payout is to the tune of 14%. The company fixed February 22, 2024, as the record date for determining eligible shareholders.

- BUY SJVN cmp 120.55 Stop Loss 117 Target 128

SJVN will turn ex-dividend on February 21, for its interim dividend of 11.5% amounting to Rs 1.15 per share.

- BUY ITDC cmp 695.60 Stop Loss 684 Target 730

Although, ITDC did not announce any fresh dividend payout. Holding a consistent track record, it last year paid up to 22% dividend valuing to Rs 2.20 per share.

February 15 Trading Guide:

Prashanth Tapse, Senior VP (Research), Mehta Equities said, there could be more bouts of intra-day volatility in the near term, as investors are getting restless in the wake of delay in rate cuts by the US Fed. There are fears that rate cuts may not happen in the near term due to higher inflation worries, and hence markets may continue to witness choppy trends going ahead. Technically, Nifty's aggressive upside targets are still seen at the 22127 mark, while the make-or-break support is at the 21517 mark.

Siddhartha Khemka, Head - of Retail Research, at Motilal Oswal Financial Services, said, that with the result season almost over, the focus will shift to global cues and economic data points. Overall we expect the market to see a gradual up move on back of strong fundamentals.

To investors, Ajit Mishra, SVP - Technical Research, Religare Broking said, the tussle shows consolidation amid mixed cues and we feel it might continue in the near future. In case of a further rebound, the 22,000-22,150 zone would continue to act as a hurdle in Nifty. Traders should stay focused on stock selection and refrain from aggressive bets.

On the previous session, Sensex and Nifty 50 showcased a remarkable recovery, closing at the day's high after an intraday dip. The bullish trend was led by the banking sector, with Nifty Bank making a 3% recovery from its lows.

State Bank of India (SBI) and Reliance Industries (RIL) emerged as the top contributors to the Nifty index, collectively lifting it by 52 points. SBI and Axis Bank played a pivotal role in Nifty Bank's gain, contributing almost 70% to the sector's surge of 406 points, closing at 45,908.

On the latest performance, Vinod Nair, Head of Research, at Geojit Financial Services said, the domestic market staged a recovery from the day's low, buoyed by renewed buying interest in banking stocks. Improving asset quality and the government's continued focus on fiscal prudence attracted PSU banks, yet concerns lingered regarding their elevated valuations. The optimism was further supported by favourable inflation figures from the UK, contributing to a widespread recovery. However, IT shares experienced selling pressure following the release of higher-than-expected US CPI, prompting concerns over potential delays in interest rate cuts and its impact on client spending.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.