Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Or Sell On Friday, 21st July

On Thursday, the Indian stock market ended higher for the sixth consecutive session. After reaching a new all-time high of 19,991 levels, the NSE Nifty gained 0.74 percent to close at 19,979 levels. BSE Sensex surged 0.71 percent, reaching a new record high of 67,619, before closing at 67,571 levels. The Bank Nifty index climbed 1.13 percent to reach 46,186.

Commenting on the Nifty prediction for today, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support at 19850 then 19730 zones while resistance at 20150 then 20200 zones. Now it has to hold above 19850 zones to extend the move towards 20150 then 20200 zones while on the downside support is intact at 19850 and 19730 zones.

Commenting on the Bank Nifty prediction for today, Chandan Taparia said, "Bank Nifty support at 45850 then 45650 zones while resistance at 46500 then 46750 zones. Now it has to continue to hold above 45900 zones for an up move towards of 46500 then new life high of 46750 zones while on the downside support is seen at 45850 then 45650 zones."

Market Outlook Today

Chandan Taparia said "Disappointing revenue forecast by domestic IT major Infosys, weak opening Asian markets, overnight sharp decline in US IT index major Nasdaq Composite, may open Indian equity on a weak note. However, Dow Jones Index gained half percent to close 16-month high backed by good quarterly results announced by IBM and mixed economy data lifted Dow Jones in the 9 trading sessions, single largest rally since 2017.Reliance Industries will be focus ahead of quarterly results to be announced today."

"Expects profit booking on IT stocks after Infosys, Mphasis, Coforge and Persistent Systems announced poor results. FMCG stocks will be positive after United Spirits and India Mart announced impressive quarterly results. PSU Banks may be positive after strong quarterly results announced by most of the small cap PSU Banks. Gift Nifty slipped by 0.5% on account of Infosys ADR dropped over 8% after the company reduced FY24 CC revenue guidance to 1-3.5% from 4 -7% earlier," he further added.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 2 stocks to buy today on Friday, 21st July.

Technical Pick:

SBI

Buy at CMP of Rs 610, stop loss: Rs 595, target price: Rs 640, duration: 2 to 3 days

SBI has given a trend line breakout on the daily chart and managed to close above the same. Buying is visible across PSU Banks which will support the up move. It has formed a strong bullish candle on the daily chart and 20DEMA is acting as role reversal for the stock, said Chandan Taparia.

Fundamental Pick:

ITC

Buy at CMP of Rs 492, target price: Rs 520, timeframe: 1 year

ITC might demerge its Hotel Business which can be announced in its upcoming AGM. ITC's earnings outlook is better compared to other large-cap staples players in FY24 and FY25. ITC has reported consistent impressive performance in its Other FMCG business, along with robust performance in Hotels. ITC posted a healthy ~24% EPS growth in FY23 and we expect an EPS CAGR of ~15% over the next two years, 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.