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

On Wednesday, the BSE Sensex and NSE Nifty 50 Indian market indices opened down due to subpar global trends. The BSE Sensex was down 249.46 points or 0.38% to 66,209.85, while the NSE Nifty 50 fell 76.55 points or 0.39% to 19,657.

Nifty Prediction

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support is at 19650 then 19560 zones while resistance is at 19867 then 19991 zones. Now it has to hold above 19700 zones to extend the move towards 19867 then 19991 zones while on the downside support is placed at 19650 and 19560 zones.

Bank Nifty Prediction

Bank Nifty support is at 45350 then 45000 zones while resistance is at 46000 then 46250 zones. Now it has to cross and hold above 45650 zones for a bounce towards 46000 then 46250 levels while on the downside support is seen at 45350 then 45000 zones, said Chandan Taparia.

Market Outlook

Indian Market is expected to open on a weak note on account of sharp decline across the global markets after the global rating agency Fitch downgraded the U.S. long-term rating to AA+ from AAA, said Chandan Taparia.

"US market ended on a mixed bag after announcing mixed bag of economy data (PMI data) and poor quarterly earnings. Moreover, ahead of US jobs data and major companies' earnings reports later this week, drifted lower US market at the end of the day. European stocks decline sharply on Tuesday as the poor earnings season since 2020 rolled on and poor China economy data announcement. Eurozone Manufacturing July PMI reported to 3-year low. Asia stocks opened lower after Fitch Ratings downgraded the US from the top-tier sovereign rating. Global rating agency Fitch downgraded the US from its top-tier AAA to AA+ and repeated standoffs over raising the debt limit," said Chandan Taparia.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 2 stocks to buy today, 2nd August.

Technical Pick:

Ashok Leyland

Buy at CMP of Rs 184, stop-loss: Rs 179, target price: Rs 194, duration: 2 to 3 days.

Ashok Leyland is in overall uptrend and continuously forming higher lows from past four weeks. It has also retested breakout on daily chart and inched higher. The momentum indicators are placed in the positive territory which may take the price to higher zones, said Chandan Taparia.

Fundamental Pick:

Escorts Kubota

CMP: Rs 2561, duration: 1 year, View: Positive

ESCORTS' 1QFY24 revenue/EBITDA/Adj. PAT grew ~16%/62%/92% YoY to INR23.3b/3.3b/2.8b. Tractor volumes declined 1% YoY, while ASP grew 5% YoY (down 1% QoQ) at INR627.1k. 1QFY24 results were better across all fronts, led by multiple levers, such as better ASPs, gross margin benefits, and cost-control measures. Consequently, EBITDA margin came in at 14% (vs. est. 10.8%). The management has guided for i) low-mid single-digit tractor volume growth in FY24E and ii) sustenance of EBITDA margin for the coming quarters. We raise our FY24E/FY25E EPS by 21.4%/9.3% to factor in for margin expansions and high 'other income', 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.