Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Today, 24th Aug

For the third day in a row, Indian stock markets held steady on Wednesday, with the Nifty index steadily rising to close up 48 points at 19444 levels and Sensex rising 0.33% to close at 65,433.30 level. Nifty August Future closed at 19430.90 with a discount of 13.10 points compared to the previous session's discount of 10.15 points. Bank Nifty futures OI climbed by 3.64% to 23.22 lakhs while Nifty futures OI fell by 0.78% to 1.29 crore. The Nifty Put/Call Ratio (OI) went from a level of 0.92 to 1.05. India VIX dropped from 11.75 to 11.73 levels by 0.17%.

Commenting on the outlook of Nifty today, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support at 19350 then 19250 zones while resistance at 19560 then 19650 zones. Now it has to hold above 19420 zones, for an up move towards 19560 and 19650 zones whereas supports are placed at 19350 then 19300 zones.

Commenting on the outlook of Bank Nifty today, Chandan Taparia said, "Bank Nifty support at 44150 then 44000 zones while resistance at 44750 then 45000 zones. Now it has to continue to hold above 44250 zones for an up move towards 44750 then 45000 zones while on the downside support is seen at 44150 then 44000 levels."

Stock Market Outlook Today

Indian stock market is expected to open on a strong note on account of a rally across the global market amid optimism of the US Fed to pause interest rate after August PMI fell to 6-month low, sharp decline in US 10-Year bond yield. US equities rallied up 1.5% on Wednesday, with bond yields easing back (from 4.33% to 4.20%) from their highest levels since 2007 after a report indicated business activity cooled in August, fueling bets that the Federal Reserve may be at the end of its tightening campaign, said Chandan Taparia.
10-year German rate dropped after announced weak European August PMI data. Shares in Asia rose after US stocks rallied and Treasury yields retreated following lackluster economic reports that support the case for the Federal Reserve to pause interest rate hikes. Expectations are positive for Space-sector companies after the successful monsoon-mission landed Chandrayaan-3. PSU Bank, power, metal, mid & small cap and auto stocks will be in focus today, Chandan Taparia further stated.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has suggested the below stocks to buy today i.e. on Thursday, 24th August.

Technical Pick:

L&T

Buy at CMP of Rs 2717, stop-loss: Rs 2660, target: Rs 2830, timeframe: 2-3 Days

Larsen & Toubro has given Cup & Handle breakout on daily charts and managed to close above the same. It is continuously forming higher top- higher bottom formation on higher degree charts and supports are gradually shifting higher. Buying is visible across Capital Goods space and it has given the highest daily close ever. The momentum indicators are placed in the positive territory which may take the price to higher zones, said Chandan Taparia.

Fundamental Pick:

Paytm

Buy at CMP of Rs 913, target: Rs 1000, timeframe: 1 year

Paytm remains focused on becoming free cash flow positive in the near to medium term. Disbursal growth has now become broad-based, with healthy momentum in consumer and merchant loans. Portfolio quality improved in 1QFY24 vs. 4QFY23, with a reduction in bounce rates and a moderation in ECL costs, especially in postpaid loans. Contribution margin is expected to remain around the same levels with a positive bias going ahead. Operating leverage will continue to play, which will drive improvement in adjusted EBITDA margin over the medium term, 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.