Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Or Sell On Thursday, 20th July

The Sensex climbed by 302.30 points or 0.45 percent on July 19 to close at 67,097.44, while the Nifty gained by 83.90 points or 0.42 percent to close at 19,833.20. However, a weak start in the Asian markets and a decline in US futures both of which declined by 0.5% might cause the domestic equity index to open on a flat note.

Commenting on the Nifty prediction for today, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support at 19730 then 19650 zones while resistance at 19950 then 20000 zones. Now it has to hold above 19730 zones to extend the move towards 19950 then 20000 zones while on the downside support is intact at 19730 and 19650 zones.

Commenting on the Bank Nifty prediction for today, Chandan Taparia said "Bank Nifty support at 45250 then 45000 zones while resistance at 45905 then 46250 zones. Now it has to continue to hold above 45400 zones for an up move towards 45905 then new life high of 46250 levels while on the downside support is seen at 45250 then 45000 zones."

Market Outlook Today

"Weak opening in the Asian markets and fall in US Future, may open domestic equity Index on a flat note. Both US Future and Asian markets declined up to 0.5% after Netflix and Tesla Inc announced poor quarterly results in the post market. UK and European shares gained as the UK inflation fell below 8% to 15-month low, boosting sentiment," said Chandan Taparia.

"Yesterday, Bank of Japan Governor Kazuo Ueda's comment that the BOJ will continue to maintain its easy monetary policy until there's a shift in its assessment for stably achieving its inflation target. Undertone bullish sentiment in the market on account of strong FIIs buying interest, good quarterly results and improved global economy data to support domestic market. Back home, Gift Nifty is trading flat to negative however expects higher intra-day volatility today ahead of major events like - Nifty and Bank Nifty weekly expiry, Reliance de-merger, Infosys, HUL and United Spirts quarterly results to be announced today," he further stated.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 2 stocks to buy today on Thursday, 20th July.

Technical Pick:

Bajaj Finance

Buy at CMP of Rs 7584, stop-loss Rs 7430, target price Rs 7900, duration: 2 to 3 days

Bajaj Finance has given range breakout on the daily chart and managed to close above the same . It has formed a strong bullish candle on a daily scale and perfectly respects 20DEMA. The momentum indicators are placed in the bullish territory which will support the upmove, said Chandan Taparia.

Fundamental Pick:

Indian Hotels

Buy at CMP of Rs 402, target price Rs 440, duration 1 year

Indian hotel industry is in a sweet spot as it is expected to witness a decadal high occupancy of 70-72% in FY24. We expect the strong momentum to continue in FY24 for Indian Hotels, led by:

1) a further improvement in occupancy due to multiple large global events such as G20 and ICC Cricket Men's World Cup in CY23;

2) an increase in ARR due to better demand, upgrades in hotels and corporate rate hikes;

3) higher income from management contracts; and

4) value unlocking by launching reimagined and new brands, 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.