Stocks To Buy: 2 Trade Calls By Chandan Taparia of Motilal Oswal On 5th Jan, Friday

On Thursday, Nifty closed 141 points higher at 21659 levels amid mixed global cues as US Indices closed mixed -0.6% to 0.1% and European indices closed positive 0.5% to 0.6%. Mixed bag opening in the Asian markets and Gift Nifty is trading flat, which may trigger to opening of domestic equity on a flat note on Friday, 5th January.

Market Outlook

"Mixed bag opening in the Asian markets and ahead of important US payroll data to be released today, may open domestic equity on a flat note. US market ended on a mixed bag after data indicated a stronger-than-expected US jobs market, resulting in US 10-year Treasury yields rising to nearly 1-month high at 4%. Today, payrolls data and Job data will be announced today - a key indicator of US Fed interest rate decision," said Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal.

"Back home, Gift Nifty is trading flat. Power stocks will be in focus due to growing power demand with the government aiming to build India as a manufacturing powerhouse. PSU and Rail stocks will be positive due to higher government spending in the rail infrastructure sector, rising capex and attractive dividend yield. NBFC and PSU banks rally may continue after reported impressive Q3 business earnings update," he stated.

Nifty Outlook

Nifty immediate support at 21550 then 21400 zones while resistance at 21850 then 22000 zones. Now it has to hold above 21550 zones, for an upside move towards 21850 and 22000 zones while supports are seen at 21550 and 21400 zones, said the analyst.

Bank Nifty Outlook

"Bank Nifty support at 48000 then 47777 zones while resistance at 48500 then 48636 zones. Now it has to continue to hold above 48000 zones for an up move towards 48500 then recent life time high of 48636 marks while on the downside support is seen at 48000 then 47777 zones," Chandan Taparia stated.

Stocks To Buy Today

Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal has recommended 2 stocks to buy on Friday, 5th January. Check the complete fundamental and technical analysis here.

NTPC

Buy at CMP of Rs 317, stop-loss: Rs 308, target: Rs 335, duration: 2-3 Days

NTPC has given a range breakout on the daily chart with noticeable volumes and managed to close above the same.It has formed a bullish candle on the daily chart and supports are gradually shifting higher. Buying is visible across the CPSE Index which may support the ongoing up move. The momentum indicator Relative Strength Index (RSI) is on the verge of giving a bullish cross-over, which may take the price higher.

IIFL Finance

Buy at CMP of Rs 635, target: Rs 800, Duration: 1 Year

IIFL Finance is a diversified NBFC with a strong presence across its core products of gold loans, home loans, microfinance, LAP and unsecured business loans. IIFL has morphed into a franchise, which enjoys distribution strength, strong presence in co-lending, and superior digital loan origination and underwriting capabilities, and can effectively leverage fintech partnerships to deliver a ~25% AUM CAGR over FY23-FY26E.

We believe IIFL can see further re-rating as investors get more confidence in its sustained execution prowess through strengths that it has built-in its core retail businesses. We initiate coverage on the stock with a BUY rating and a TP of INR800, said the analyst.

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.