Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Today, 3rd Aug

India's benchmark stock indices opened lower for the third consecutive session on Thursday. The Nifty started lower by 0.32% at 19463.80, and the Sensex opened down 0.35% at 65550.60, marking the market a rough start. The S&P BSE MidCap Index was down 0.26%, while the S&P BSE SmallCap Index was down 0.01% as the broad market indexes opened on a red note.

Nifty Prediction

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support is at 19420 then 19333 zones while resistance is at 19650 then 19700 zones. Now till it holds below 19560 zones weakness could be seen towards 19420 and 19333 zones while hurdles are placed at 19650 and 19700 zones.

Bank Nifty Prediction

Bank Nifty support is at 44700 then 44444 zones while resistance is at 45350 then 45500 zones. Now till it holds below 45250 zones weakness could be seen towards 44700 then 44444 marks while on the upside hurdle is seen at 45350 then 45500 zones, said Chandan Taparia.

Market Outlook

Indian stock market is expected to open on a weak note on account of sharp decline global markets after the global rating agency Fitch cutting the US rating by one level to AA+ from AAA. US 2-Year Bond Yield spiked to 1-month high to above 4% and Volatility Index (US Vix) surged by 15%. US equities fell up to 2% on Wednesday as investors scrutinized the latest batch of corporate earnings reports, along with a hotterthan-estimated reading on the labor market after Fitch Ratings downgraded the long-term credit rating for the country, said Chandan Taparia.

European stocks slumped the most in almost a month as Fitch Ratings's downgrade of US sovereign debt triggered risk-off trades across the board, while earnings reports did little to offset the negative sentiment. Today Global PMI data will be announcing today like US, Europe, Asia including India also. Focus on gaming stocks today after news that the GST Council decided to review the 28% tax on casinos and other forms of gambling six months after it goes into effect, said Chandan Taparia.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 2 stocks to buy today, 3rd August.

Technical Pick:

Berger Paints

Buy at CMP of Rs 711, stop-loss: Rs 690, target price: Rs 760, duration: 2 to 3 days

Berger Paints is in overall uptrend and gave a range breakout on the daily chart with noticeable volumes. It formed a strong bullish candle on daily scale and supports are gradually shifting higher. The momentum indicators are placed in the positive territory which may take the price to higher zones, said Chandan Taparia.

Fundamental Pick:

AB Capital

Buy at CMP of Rs 190, target price: Rs 220, duration: 1 year

ABCL has exhibited a significant improvement in operational metrics across all business segments in 1QFY24. Consolidated 1QFY24 revenue grew ~39% YoY. It added ~36 branches in 1QFY24, with a total branch count of 1,331. We expect a consolidated PAT CAGR of 42% over FY23-25, 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.