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

Prior to the US Federal Reserve's announcement on interest rates, domestic markets opened trading on a positive note on Wednesday. The Nifty50 traded over 19,700 levels, up 39 or so points, while the S&P BSE Sensex jumped over 200 points to trade at 66,434.72 levels. Broader markets Nifty Midcap 100 and Nifty Smallcap 100 indices too gained by 0.3% respectively.

Market Outlook

"Market is likely to wait & watch mood today as tomorrow will be busy day in the domestic market. U.S. stocks extended gains on Tuesday as investors waited for big tech earnings after the bell and the Federal Reserve's policy decision on Wednesday. US Fed policy outcome, Nifty and Bank July F&O expiry, Bank of Japan policy meeting and European Central Bank policy announcement will be in focus. Back home, Gift Nifty is up 0.2% .Expects stocks specific action in the market and traders buy on decline strategy in the market. Traders focus on metal stocks due to rising base metal price on LME on hope of China stimulus. Upstream oil companies like ONGC and Oil India will be positive due to Brent crude surged to over 3-month high," said Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal.

Nifty Prediction

Nifty immediate support at 19560 then 19433 zones while resistance at 19786 then 19888 zones. Now it has to hold above 19600 zones to extend the move towards 19786 then 19888 zones while on the downside support is placed at 19560 and 19433 zones, said Chandan Taparia.

Bank Nifty Prediction

Chandan Taparia said Bank Nifty support is at 45650 then 45500 zones while resistance at 46250 then 46369 zones. Now it has to cross and hold above 45900 zones for an up move towards 46250 then recent life high of 46369 marks while on the downside support is seen at 45650 then 45500 zones.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 2 stocks to buy today Wednesday, 26th July.

Technical Pick:

National Aluminium Company Limited

Buy at CMP of Rs 95, stop loss Rs 92, target price: Rs 100, duration: 2 to 3 days

National Alum has given flag breakout on daily chart and managed to close above the same. Buying is visible across Metals space and supports are gradually shifting higher. It has formed a strong bullish candle on daily chart with noticeable volumes which will support the ongoing up move, said Chandan Taparia.

Fundamental Pick:

Tata Motors

Buy at CMP of Rs 639, target price: Rs 750, duration: 1 year

TATA Motors (TTMT) significantly beat our estimates in 1QFY24, led by JLR and CV businesses. Consol. revenue grew 42% YoY in 1QFY24 to INR1,022b. EBITDA jumped 3.3x YoY to INR136b. Adj. PAT stood at INR37.2b (vs. loss of INR65b in 1QFY23). JLR EBIT margin expanded to 8.6% YoY while Tata CV business EBITDA margin improved to 9.4%. On the other hand, Tata PV business mix brings down margins. JLR's volumes grew 29% YoY to 106.25k units. With JLR wholesales expected at ~400k in FY24 and favorable mix, JLR should easily beat >6% EBIT margin guidance. India businesses focus on margin expansion as volume growth is likely to moderate in FY24. We upgrade our FY24E/25E consol. EPS by 28%/11% to factor in: a) JLR's moderation in certain costs, b) margin improvements in India CV business, and d) scheme of arrangement of cancellation of DVR shares w.e.f FY24, 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.