Siddharth Sedani shares positional & long-term picks as Nifty50 starts October series with mild gains

Siddharth Sedani Stock Picks: As Dalal Street prepares for Diwali with a special Muhurat trading session on October 21, market experts are lining up their top stock recommendations for generating alpha for investors. In conversation with Zee Business, Siddharth Sedani of Anand Rathi Securities has shared two ‘buy’ calls with targets suggesting potential gains to the tune of 8-13 per cent. 

Sedani’s calls come at a time when the market has made a mildly positive start to the October F&O series, with a gain of 186 points, or 0.8 per cent, as of October 6. The headline index has finished the month’s derivative series on a positive note seven times in the past 10 years, data shows. 

The market analyst recommends holding on to index positions once the Nifty50 crosses and sustains above the 25,200 mark in the current series, focusing on strong sectors and adding positions wherever possible. 

Sedani has a positive outlook on the index going forward, with the possibility of midcap and smallcap stocks firing up and providing traders a strong opportunity. While Q2 business updates signal strong Q2 numbers, the October-December period is also expected to see stng numbers owing to factors like Navratri-led growth in the government’s GST collections. 

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Siddharth Sedani Positional Pick: ‘Buy’ KIMS, target Rs 780 

The market analyst has a ‘buy’ call on Krishna Institute of Medical Sciences (KIMS) shares as a positional pick with a target price of Rs 780. 

He suggests taking positions around the Rs 700 mark with a stop loss at Rs 690. 

KIMS has a strong presence in Telangana and Andhra Pradesh with a combined bed capacity of more than 8,000 beds, and a return on capital employed (RoCE) to the tune of 16 per cent, Sedani pointed out. 

The company has an average revenue per occupied bed of Rs 42,000 per day, with an operating margin of 22-25 per cent, he adds. 

Siddharth Sedani Long-term Pick: ‘Buy’ Poonawalla Fincorp, target Rs 600

Sedani has a long-term ‘buy’ recommendation on Poonawalla Fincorp shares with a target price of Rs 600.