Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Or Sell On Friday, 28th July

In the wake of today's Bank of Japan policy announcement and amid unfavourable global signals, domestic indices opened in the red. The BSE Sensex declined 111.26 points or 0.17% on 66,155.56, and the NSE Nifty 50 dropped 28.80 points or 0.15% to 19,631.10. Bank Nifty fell 193.55 points, or 0.42%, to 45,485.75.

Nifty Prediction

Commenting on the outlook of Nifty, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support at 19620 then 19560 zones while resistance at 19888 then 19991 zones. Now it has to hold above 19700 zones to extend the move towards 19888 then 19991 zones while on the downside support is placed at 19620 and 19560 zones.

Bank Nifty Prediction

Bank Nifty support at 45500 then 45250 zones while resistance at 46250 then 46369 zones. Now it has to cross and hold above 45900 zones for a bounce towards 46250 then recent life high of 46369 marks while a hold below the same could see some weakness towards 45500 then 45250 levels, said Chandan Taparia.

Market Outlook

Indian stock market is expected to open on a flat to negative note on account of global cues after the US market declined sharply from the day's high, ahead of Bank of Japan policy outcome today and overnight ECB hiked interest rate by 25bps, may impact the domestic market in the beginning of August series F&O today, stated Chandan Taparia.

Both Nasdaq and Dow Jones slipped 0.5% each. ECB hiked the interest rate by 25bps to 3.75% as expected. Both France and Germany Index gained 2% each. The yen strengthened and Asian stocks fell after a report saying the Bank of Japan will discuss tweaking policy on Friday rumbled through financial markets. Japan Index slipped over 1% ahead of policy outcome today. Brent crude surged to 3-month high of $84/bbl and FIIs of nearly Rs4000cr net sellers are major concerns in the market. Expect stock-specific action in the market and traders buy on decline strategy continue in the volatile market. Expects positive for Pharma, cement and realty stocks after announcing impressive quarterly results, said Chandan Taparia.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 2 stocks to buy today i.e. Friday, 28th July.

Technical Pick:

Ambuja Cements

Buy at CMP of Rs 450, stop loss: Rs 438, target price: Rs 475, duration: 2 to 3 days
Ambuja cements has given a range breakout on daily chart and holding well above the same. It has negated lower highs after five weeks and supports are gradually shifting higher. Buying is visible across cements space which will support the ongoing up move, said Chandan Taparia.

Fundamental Pick:

Ajanta Pharma

Buy at CMP of Rs 1546, target price: Rs 1800, duration: 1 year

Ajanta Pharma posted in-line sales with better-than-expected profitability in 1QFY24. AJP benefited from lower raw material cost/freight cost in 1QFY24 and expects the same to sustain over the near-to-medium term. We expect 23% earnings CAGR over FY23-25, led by 15% sales CAGR in Domestic Formulation/Asia and 13% sales CAGR in the US segment, supported by 370bp margin expansion, 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.