Motilal Oswal's Stock Picks For Intraday Trading On Friday

The Indian stock market closed lower for the third day in a row on Thursday following a strong loss in the global market following a hawkish remark by the US Fed Chairman and a warning that it would probably maintain interest rates higher for a longer period. European indices sank 0.7-1.6% yesterday, while US markets yesterday closed 1-2% down.

Nifty yesterday, declined for the 3rd consecutive day and closed with a loss of 159 points (-0.8%) at 19742 levels, FII sold Rs3007 crore shares while DIIs bought Rs1158 crore shares, and currently Gifty Nifty is trading at 0.33% or 65 points higher at 19,727 level indicating a mixed cue for benchmark indices today.

Nifty Prediction Today

Nifty immediate support at 19650 then 19550 zones while resistance at 19850 then 19950 zones. Now till it holds below 19850 zones, some more profit booking may be seen towards 19650 and 19550 zones whereas hurdles are placed at 19850 then 19950 zones, said Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal.

Bank Nifty Prediction Today

Bank Nifty support at 44444 then 44250 zones while resistance at 45000 then 45250 zones. Now till it holds below 44750 zones some more weakness could be seen towards its key level of 44444 then 44250 levels while on the upside hurdle is seen at 45000 then 45250 zones, stated Chandan Taparia.

Market Outlook Today

"Expect market to open on a weak note on account of sharp decline across the global market after hawkish statement by the US Fed Chairman and signalled it would likely keep interest rates higher for longer time. US market declined up to 2% to close nearly 3-month low amid surging US Bonds yield following a slump in weekly jobless claims and concern that the investor may shift from equity to bond market after the US 10-Year bond spiked to 16-year high at 4.50%. Gift Nifty decline by 0.50% while US Future marginally gain.

Concern of continue FIIs selling and rising oil price pulled down the domestic market. FIIs were net sellers $2bn or nearly Rs17000cr during the month September. Traders avoid aggressive buying interest on account of weakness in the global markets. Traders focus on PSU banks and Sugar stocks. Expects positive for sugar stocks on account of increase domestic price and hope of improve demand ahead of festival session," said Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal.

Stocks To Buy Today

Chandan Taparia has recommended 2 stocks to buy today. Check below for more details.

Technical Pick:

Berger Paints

Buy at CMP of Rs 627, stop-loss: Rs 610, target: Rs 660, duration: 2 to 3 days.

Berger Paints has given trend line breakout on daily chart and holding well above the same. It has formed a bullish candle on daily chart and showing strength in spite of broader market weakness. The momentum indicators are placed in the positive territory which may take the price to higher zones.

Fundamental Pick:

Glenmark Pharma

Chandan Taparia has a positive outlook on Glenmark Pharma as the company has proposed to divest its API business, Glenmark Lifescience (GLS) with the aim of reducing debt and increasing its emphasis on branded/innovative products. Glenmark Pharma (GNP) intends to divest a 75% stake in GLS to Nirma at INR615 per share, for an aggregate consideration of INR56.5b. GNP would retain 7.84% stake in the company post divestment. This is the third transaction by GNP with a cumulative cash generation of INR62.5b over the past 12- 15M. After the stake sale, GNP is set to transition from a net debt position of INR29.5b to a cash surplus INR21b, said Chandan Taparia.

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.