Buy/Sell: 2 Trade Calls By Chandan Taparia of Motilal Oswal On Wednesday, 10th Jan

Ahead of key US Inflation data along with domestic IT majors TCS and Infosys quarterly results to be announced tomorrow and mixed bag closing in the US market, may open domestic bourses on a flat note.

Overnight, Dow Jones slipped nearly 0.5% as concern of US Treasury 10-year yields remained above 4% while Nasdaq composite managed to end in positive territory. Expectations for a rate cut by the Fed as early as March have diminished, with CME's Fed Watch Tool indicating only a 65.7 percent likelihood of at least a 25 basis point cut, a decrease from 79 percent a week earlier, said Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal.

UK, Germany and France Index declined by 0.3% each. Japan market is up 1.5% to 34-year high after announcing impressive inflation data. Back home, Gift Nifty is trading flat to negative. Focus on auto, EV, telecom, financials, stocks ahead of Vibrant Gujarat Global Trade commence from today, the analyst further added.

Nifty Outlook

Nifty immediate support at 21400 then 21300 zones while resistance at 21650 then 21750 zones. Now till it holds below 21650 zones, some profit booking could be seen towards 21400 then 21300 while on the upside hurdles exists at 21650 and 21750 zones.

Bank Nifty Outlook

Bank Nifty support at 47000 then 46750 zones while resistance at 47500 then 47777 zones. Now till it holds below 47500 zones some weakness could be seen towards 47000 then 46750 levels while on the upside hurdle is seen at 47500 then 47777 zones.

Stocks To Buy Today

Here are the 2 trade calls for Wednesday 10th Jan by Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal.

Hero Moto

Buy at CMP of Rs 4112, stop-loss: Rs 4030, target: Rs 4300, duration: 2-3 days

Hero Moto is in overall uptrend ; perfectly respecting 20 DEMA and inching higher. RSI (relative strength Index) is on the verge of giving bullish cross over which suggests momentum to pick up in coming sessions. The stock is a strong outperformer within AUTO space and likely to scale new record highs in coming sessions.

SBI Life

Buy at CMP: 1449, TP: 1700, Duration 1 Year

SBILIFE reported a growth healthy growth of 19.6% YoY in Individual WRP for 3QFY24. Total Unweighted premium grew 20.7% YoY. In terms of Individual WRP, SBILIFE remained the largest private insurance company with a market share of 17.9%.

SBILIFE's channel productivity has been improving, and the company is working on improving its efficiency in the agency channel. It remains our preferred pick in the life insurance space. We expect a 20% CAGR in APE over FY23-25, thus enabling a 19% VNB CAGR. RoEV is likely to stay at ~21-22%, 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.