Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Or Sell On Tuesday, 4th July

On Monday, the Indian stock market continued its upward trend for a fourth consecutive day. While the BSE Sensex surged to a new all-time high of 65,300 levels, the NSE Nifty reached a record milestone of 19,345 points. Nifty June future wrapped up at 19404.95 with an 82.40 point premium over the previous session's discount of 72.20 points.

India VIX climbed by 6.85% from the previous level of 10.80 to 11.54. Commenting on the outlook of Nifty on Monday, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support is at 19100 then 19000 zones while resistance is at 19400 then 19500 zones. Now it has to continue to hold above 19250 zones to extend the move towards 19400 and 19500 zones while on the downside support shifts higher at 19100 and 19000 zones.

Commenting on the outlook of Bank Nifty, Chandan Taparia said "Bank Nifty support at 44750 then 44444 zones while resistance at 45350 then 45500 zones. Now it has to continue to hold above 45000 zones for an up move towards 45350 then new high of 45500 zones while on the downside support shift higher at 44750 then 44444 levels."

Market Outlook On Tuesday

Chandan Taparia said "Subdued opening in the Asian markets and ahead of the US Independence Day holiday today, domestic market may open on a flat note. Overnight, U.S stocks edged marginally higher after announced mixed bag on economy data. Nasdaq and Dow Jones gained 0.2% each. European stocks dropped slightly on Monday following strong gains in the first half of the year as cyclical sectors climbed while investors mulled the path of monetary policy and economic growth."

"Asian stocks were under pressure Today after equities on Wall Street scratched out marginal gains ahead of the Independence Day holiday. Japan's benchmark indexes fell 1%, while South Korea's Kospi gauge fluctuated. Australian equities ticked slightly higher ahead of an interest- rate decision. Expects rally on PSU banks to continue despite yesterday PSU Bank Index soared nearly 4%. NBFC stocks will be in focus after Bajaj Finance announced impressive Q1FY24 business update. Gift Nifty is trading flat today," he further added.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 2 stocks to buy on Tuesday, 4th July.

Technical Pick:

Bajaj Finance

Buy at the current market price of Rs 7333, stop-loss Rs 7150, target price Rs 7700, timeframe 2 to 3 days.
Bajaj Finance is forming higher highs since the previous 3 sessions which indicates a positive trend. It has formed a strong bullish candle on the daily scale which indicates buying interest. The momentum indicators are placed in the positive territory which will take the prices to higher zones, said Chandan Taparia.

Fundamental Pick:

ITC

Buy at CMP of Rs 466, target price Rs 485, timeframe 1 year

ITC's earnings outlook is better compared to other large-cap staples players in FY24 and FY25. Unlike its staples peers, 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.