Day Trading Guide: Stocks To Buy Today As Guided By Chandan Taparia of Motilal Oswal

Nifty September futures wrapped up at 20249.60 on Friday with a premium of 57.25 points compared to a premium of 68.90 points in the previous session. Bank Nifty futures OI rose by 2.17% to 20.26 lakhs, while Nifty futures OI jumped by 2.02% to 1.25 crore. The Nifty Put/Call Ratio (OI) fell from a level of 1.33 to 1.31. India VIX dropped from 11.32 to 10.90 levels, a drop of 3.69% on Friday. The US and European indices both ended the day in the minus 0.8% to 1.6% range, while the Asian indices are now trading neutral (-1% to 0.5%), providing a mixed set of global cues for the home market.

Market Outlook Today

"Weak opening in the Asian market and sharp decline in US market on Friday, may open domestic market on a flat to negative note. US stocks fell up to 1.5%, with a massive options event amplifying volatility and traders weighing the impacts of a strike that hit Detroit automakers while sifting through economic data before the Federal Reserve decision.

US Vix climbed up 7% and US 2-Year bond surged to above 5% ahead of US Fed rate decision to be announced on Wednesday. This week, US Fed, Bank of England (BoE) and Bank of Japan (BoJ) are set to announce their interest rate decisions. Investors will keenly watch US Fed commentary on Wednesday policy meeting which may provide future direction in the market. Gift Nifty decline by 55 points or 0.25% while US Future marginally gained," said Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal.

Nifty Outlook Today

Nifty immediate support at 20130 then 20050 zones while resistance at 20250 then 20300 zones. Now it has to hold above 20150 zones for an up move towards 20250 then 20300 zones whereas support exists at 20130 then 20050 zones, believes Chandan Taparia.

Bank Nifty Outlook Today

Bank Nifty support is at 46000 then 45750 zones while resistance is at 46500 then 46750 zones. Now it has to continue to hold above 46000 zones for an up move towards new life high of 46500 then 46750 zones while on the downside support shifts higher at 46000 then 45750 levels, stated Chandan Taparia.

Stocks To Buy Today

Technical Pick:

Tech Mahindra

Buy at Rs 1300, stop-loss: Rs 1260, target: Rs 1380, duration: 2 to 3 days.

Tech Mahindra has been forming higher lows on weekly scale and gave a consolidation breakout after nine sessions on daily scale. It has formed a strong bullish candle and finally managed to close above its crucial hurdle of 1270 zones. Relative strength Index (RSI) is also moving higher on a daily scale which suggests strength in the stock. Good buying interest is visible in the IT space and risk reward is quite favorable at current juncture.

Fundamental Pick:

Ashok Leyland

Buy at Rs 183, target: Rs 210, duration: 1 year

The company will invest Rs 1,000 crore in Uttar Pradesh to set up a bus manufacturing facility focused on clean mobility (EV). Upon commencement of operations, the manufacturing facility will initially have the capacity to produce 2,500 buses a year, the company said.

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.