Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Or Sell On Monday, 26th June

The Indian stock market closed down for the second consecutive session on Friday as a result of weak global market signals. Amid hawkish signals from the US Federal Reserve, the domestic market is expected to open on a flat to a positive note. Commenting on the outlook of Nifty, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support is at 18550 then 18500 zones while resistance is at 18750 then 18888 zones. Now it has to hold above 18666 zones to witness an up move towards 18750 and 18888 zones while on the downside support exists at 18550 and 18500 zones.

Commenting on the Bank Nifty outlook, he said "Bank Nifty support at 43333 then 43250 zones while resistance at 43800 then 44044 zones. Now it has to hold above 43500 zones for a bounce toward 43800 then 44044 zones while on the downside support 43333 then 43250 marks."

Stock Market Outlook On Monday

Chandan Taparia said "Positive opening in the Asian Markets and modest gain in US Future, may open domestic market on a flat to positive note. US Index declined up to 1% on Friday after dampened sentiment as hawkish signals from the US Federal Reserve and other major central banks revived concerns that higher borrowing costs threaten to tilt the economy into a recession. Geo-political tension in Russia life oil and gold price. European shares dropped for a fifth day, extending their longest losing streak of the year."
"Expect domestic market to consolidate after correcting 1% last week while US and European markets dropped five longest trading sessions between 2-3%, one of the biggest consecutive series decline in the last few months. Expect market to be range bound but stock specific action to continue. Traders buy on dips strategy may continue till the stability in the global market. SGX Nifty is trading flat to positive. US and Euro zone GDP data will watch this week," he stated.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 2 stocks to buy on Monday, 26th June

Technical Pick:

HDFC Bank

Buy at the current market price of Rs 1643, stop-loss: Rs 1610, target price: Rs 1710, timeframe: 2-3 Days

HDFC Bank is respecting its rising support trend line on a weekly chart and holding well above the same. It has formed a Hammer candle on a weekly scale which implies that buying is visible at lower levels. Momentum indicator RSI is placed in the bullish zone which will take the prices higher, said Chandan Taparia.

Fundamental Pick:

Dr Reddy

Chandan Taparia has given a positive rating on Dr Reddy. Dr Reddy has entered the trade generics business in India with the launch of its new dedicated division 'RGenX'. It aims to roll out its trade generics across cities and towns in India, including rural areas. It will work closely with its channel partners to ensure the availability of its products. The new business will further the company's goal of reaching over 1.5 billion patients by 2030, said Chandan Taparia. CMP INR4994.

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.