Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Or Sell On Friday, 23rd June

On Friday, domestic indices started out lower amid mixed global cues. The BSE Sensex fell 190.70 points or 0.30% to 63,048.19 while the NSE Nifty 50 was down 66.45 points or 0.35% to 18,704.80. Commenting on the outlook of Nifty, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support at 18710 then 18666 zones while resistance was at 18888 then 19000 zones. Now it has to hold above 18777 zones to witness an up move towards 18888 then 19000 zones while on the downside support exists at 18710 and 18666 zones.

On Bank Nifty, he said Bank Nifty support is at 43500 then 43333 zones while resistance is at 44044 then 44250 zones. Now it has to cross and hold above 43750 zones for a bounce towards 44044 then 44250 zones while a hold below the same could see some weakness towards 43500 and then 43333 marks.

Stock Market Outlook

"Concern about rising global inflation, US Fed hawkish commentary and significant hiked interest rate by the euro zone area may be dampening the market sentiment. US equities snapped a three-day losing streak as investors analyse a second day of congressional testimony from Federal Reserve Chair Jerome Powell. Dow Jones ended marginally decline while Nasdaq Composite gained 1% led by tech heavyweight. European equities extended decline to a fourth day on hawkish signals from policy makers as the Bank of England surprised the market with a bigger-than-expected rate increase, fuelling further fears of an economic slowdown. Asian stocks turned modestly lower today amid elevated bond yields following a spate of central bank rate hikes. Japanese shares erased initial gains as investors weighed inflation data that was stronger than expectation," said Chandan Taparia.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 2 stocks to buy on 23rd June.

Technical Pick

L&T

Buy at the current market price of Rs 2416, stop-loss: Rs 2370, target price: Rs 2510, timeframe: 2-3 days
L&T and DRDO yesterday signed a contract for realization of two Air Independent Propulsion (AIP) System Modules for Kalvari Class of submarines of the Indian Navy. AIP module significantly enhances endurance of conventional submarine and is a niche technology with just a few countries.

Technically Larsen is in overall uptrend and on the verge of giving major breakout on daily chart. Buying is visible across Capital Goods space and small follow up can take it to fresh life time high territories. Momentum indicators are placed in the bullish zone which may take the prices higher, said Chandan Taparia.

Fundamental Pick

Jindal Steel & Power

Buy at CMP: Rs 584, target price: Rs 720, timeframe: 1 year

JSP is all set to capture rising domestic steel demand amid the rapid expansion in infrastructure, railways, housing and construction. We believe the company is adding capacity at a right time to capture the robust growth opportunity. It is taking measures to increase margin and improve cost efficiency. JSP has been predominantly a long steel manufacturer (~67-70% product portfolio). However, after the expansion, the contribution from flats is expected to increase to ~70% from 30%. The stock trades at 4.5x FY25E EV/EBITDA. We reiterate BUY on the stock with a TP of INR720 (5.5x FY25E EV/EBITDA), 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.