Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Today, 17th Aug

In Thursday's trading session, the Indian stock market started lower amid mixed global cues. The Nifty fell 80.50 points or 0.41 percent to 19,384.50 while the Sensex fell 257.42 points or 0.39 percent to 65,282.00. India VIX climbs 3%.

Commenting on Nifty prediction, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support at 19300 then 19250 zones while resistance at 19560 then 19620 zones. Now it has to hold above 19420 zones to witness a bounce towards 19560 then 19620 zones whereas support exists at 19300 then 19250 zones.

Commenting on Bank Nifty prediction, Chandan Taparia said "Bank Nifty support at 43750 then 43600 zones while resistance at 44250 then 44444 zones. Now till it holds below 44000 zones weakness could be seen towards 43750 then 43600 zones while on the upside hurdle is seen at 44250 then 44444 levels."

Market Outlook

"Hawkish comments from US Fed officials in the minutes of the meeting to further hike interest rate pulled down US and Asian markets over 1% each. Market sentiment dampened after the Fed said that it has no choice but to keep it up interest rate hike until they are convinced that inflationary expectations is under control. Dow Jones declined 0.5% after the policymakers raised the target range for their benchmark rate by a quarter point at the July meeting, to 5.25% to 5.5%, the highest level in 22 years," said Chandan Taparia.

"Both Germany and France Index ended on a flat note while UK Index declined 0.5% after July Inflation reported marginally above the Bloomberg estimates. Shares in Asia fell after a selloff in US stocks and bonds as investors digested hawkish signals from the Federal Reserve and further signs of stress in China. Equities in Japan, South Korea and Hong Kong Index declined 1% each. SGX Nifty decline by 0.4% while US Index Future marginally decline," further added Chandan Taparia.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 3 stocks to buy today, 17th August.

Technical Pick:

M&M

Buy at CMP of Rs 1570, stop-loss: Rs 1535, target price: Rs 1640, timeframe: 2 to 3 days.

M&M has given falling supply trend line breakout on daily chart and holding well above the same. Stock is in overall uptrend and every small declines are being bought into. It formed a strong bullish candle on daily scale with noticeable volumes which has bullish implications and supports are gradually shifting higher. The momentum indicators are placed in the positive territory which may take the price to higher zones.

Fundamental Pick:

Tata Motors

Buy at INR619, TP INR750

Government has approved an investment of Rs57613cr ($6.9 billion) for buying 10,000 electric buses for public transportation under 'PM ebus sewa'. While the federal government will provide Rs20000cr the rest of the funding will be by state governments. Tata Motors expects strong growth in buses from 2Q onwards on the back of improved demand and better realization, 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.