Trading Guide: 3 Buy Calls By Chandan Taparia of Motilal Oswal On Wednesday, 3rd April

Weak start to the Asian market session; yesterday, the US and European markets dropped by 1%; the US 10-year bond yield rose to a one-month high due to expectations that the US Federal Reserve may postpone reducing interest rates, as well as hawkish remarks made by Fed officials and a six-month high of over $90/bbl for Brent crude, the domestic market may open weakly. Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal, said that auto stocks, real estate, and banks would be the main topics of attention before the RBI credit policy going to be announced on Friday. The Reserve Bank of India's (RBI) first policy meeting of FY25 will take place this week from April 3 to April 5. The US Fed Chair Powell's speech is also due on Wednesday, and Gift Nifty was seen trading negatively on that day. These are the key events that could cause the domestic market to remain volatile.

Nifty Outlook

Nifty immediate support at 22350 then 22222 zones while resistance at 22650 then 22750 zones. Now it has to continue to hold above 22350 zones to witness an up move towards 22650 and 22750 zones while on the downside support exists at 22350 and 22222 zones, said Chandan Taparia of Motilal Oswal.

Bank Nifty Outlook

Bank Nifty support is at 47250 then 47000 zones while resistance is at 48000 then 48250 zones. Now it has to continue to hold above 47250 zones to extend the move towards 48000 then 48250 zones while on the downside support is seen at 47250 and 47000 zones, added the analyst.

Stocks To Buy Today

Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal has recommended 3 stocks to buy or sell today - April 3.

HDFC Bank

Buy at CMP: Rs 1480, stop-loss: Rs 1450, target: Rs 1540, duration: 2-3 Days

HDFC bank has given a triangle breakout on the daily chart and managed to close above the same. It has also given a range breakout over the past nine weeks and finally closed above its crucial 50 DEMA. Momentumindicator Relative Strength Index (RSI) is positively placed which may make the prices higher.

Ultratech Cement

Buy at CMP: Rs 10057, TARGET: Rs 12000, Upside 19%

The company has commissioned two new greenfield projects in Chhattisgarh and Tamil Nadu, with its total capacity reaching 151.6 million tonnes per annum (mtpa). Apart from the two plants that have added 5.4 mtpa capacity, the cement firm, in the past 12 months, has expanded its volume by 18.7 mtpa. Moreover, the ongoing expansion of 35.5 mtpa is actively being implemented across 16 locations. It is also in the process of closing the proposed acquisition of Kesoram Cement. The company also said that it will invest Rs 32,400 crore towards its capital expenditure over the next three years. In addition to this, Cement companies have increased prices across India by Rs 10-15 per 50 kg bag, after being under pressure last few months due to weak demand. This should bode well for Ultratech too as it is the largest player.

ONGC

Buy at CMP: Rs 273, TARGET: Rs 315, Upside 15%

Brent yesterday rose above $89 a barrel for the first time since October, as oil supplies faced fresh threats from Ukrainian attacks on Russian energy facilities and escalating conflict in the Middle East. This will be positive for oil upstream companies. For ONGC we expect a 5% CAGR in overall production over the next three years, mainly driven by KG 98/2 and Damanupside development. Gas production from the KG 98/2 asset, which will begin in 3QFY25, is expected to ramp up to 10mmscmd in FY25, 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.