Day Trading Guide For Today: Chandan Taparia of Motilal Oswal Recommends 3 Stocks To Buy On Thursday

Despite weak global cues, domestic equities yesterday maintained their upward trajectory for the fourth straight day. Nifty ended up closing in green after a last-minute surge, adding just 36 points (+0.2%) to its value at 19611 levels. Nifty September future closed at 19658.85 on Wednesday, a difference of 47.80 points over the previous session's premium of 78.65 points. Bank Nifty futures OI rose by 6.57% to 22.98 Lakhs, while Nifty futures OI grew by 1% to 1.03 Cr. The Nifty Put/Call Ratio (OI) fell from a level of 1.41 to 1.32. India VIX decreased from 10.82 to 10.67 levels by 1.32%.

Nifty Prediction

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support is at 19500 then 19444 zones while resistance is at 19700 then 19800 zones. Now it has to hold above 19550 zones for an up move towards 19700 then 19800 zones whereas support exists at 19500 then 19444 zones.

Bank Nifty Prediction

Bank Nifty support is at 44250 then 44000 zones while resistance is at 44750 then 45000 zones. Now it has to cross and hold above 44444 zones for a bounce towards 44750 then 45000 levels a hold below the same could see some weakness towards 44250 then 44000 zones, stated Chandan Taparia.

Market Outlook

Weak opening in the Asian markets and overnight US market fell up to 1%, may open the domestic market marginally lower. US, Asia and European indexes declined sharply as concern of high oil prices, China's economy growth, rising US trade deficit, US 2-Year bond Yield spiked to 1-month high, Dollar Index surged to 6-month high and a stronger-than-expected pickup in US service-sector activity increased speculation the Federal Reserve may keep interest rates higher for longer time, said Chandan Taparia.

In the domestic market, USDINR surged record high to above 83, Brent crude nearly 1-year high to above $90/bbl and continued of FIIs selling may dampen the market sentiment. FIIs were net sellers nearly $1bn (over Rs8000cr) in the last three trading sessions which is a concern in the market. Gift Nifty decline by 40 points or 0.2% while US Future is witnessing mixed bag, stated Chandan Taparia.

Stocks To Buy Today

According to Chandan Taparia, Motilal Oswal's derivatives and technical analyst, there are 1 technical and 2 fundamental stocks to buy today, September 7.

Technical Pick:

Indian hotels

Buy at CMP of Rs 431, stop-loss: Rs 420, target: Rs 450, duration: 2 to 3 days

Indian hotels has given narrow range breakout on daily chart and holding well above the same. Hotel stocks are in continuous uptrend which may support the ongoing up move. It formed a strong bullish candle on daily scale and supports are gradually shifting higher. The momentum indicators are placed in the positive territory which may take the price to higher zones.

Fundamental Pick:

NTPC

Buy at CMP of Rs 232

Power demand touches all time high of record 241GW during 1 st week of September. India's power demand grows by 23% for the month of August, which is one of the highest in the world. Rise in peak power deficit could drive re-rating of NTPC's core thermal power business. Its RE expansion plans would further drive its earnings.

TCS

Buy at CMP of INR3430

TCS has entered into a strategic partnership with the digital unit of JLR. TCS will help JLR build a new future-ready, strategic technology architecture that will support JLR's Reimagine strategy. The new partnership, valued at 800 million pound over the next five years. It translates into average contract value (ACV) of $200m per year. We are assuming, the deal ramp up to take place in H2FY24, hence FY24E will have half-year impact from this deal. It will incrementally add 30bps and 60bps to FY24E/FY25E USD topline growth.

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.