Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Today, 8th Aug

In anticipation of this week's releases of the US inflation statistics and the RBI credit policy, the domestic market is anticipated to start off positively on Tuesday. Aside from that, investors will continue watching the three-day bimonthly policy meeting of the Reserve Bank of India, which will start later today.

Commenting on the outlook of Nifty today, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support at 19500 then 19420 zones while resistance at 19700 then 19800 zones. Now it has to hold above 19560 zones for an up move towards 19700 and 19800 zones whereas supports are placed at 19500 and 19420 zones.

Commenting on the outlook of Bank Nifty, Chandan Taparia said Bank Nifty support at 44444 then 44250 zones while resistance at 45150 then 45350 zones. Now it has to hold above 44850 zones for a bounce towards 45150 then 45350 zones while a hold below the same could see weakness towards 44444 and 44250 levels.

Market Outlook Today

"Overnight smart rally in the US market and strong opening in the Asian markets, may open domestic bourses on a positive note on ahead of RBI credit policy and US Inflation data to be released this week (India's impact on US Inflation on Friday). US stocks finished over 1% higher on Monday, regaining some of the ground lost last week, as investors added positions ahead of Thursday's highly awaited inflation report," said Chandan Taparia.

"European equities steadied after last week's slump as investor attention turned to a pivotal US inflation print due on Thursday. Shares in Asia gained between 0.5% to 1% after shares in the US rebounded from their worst week since March, with Wall Street optimism offset by the latest comments from a Federal Reserve official that pointed to more rate hikes to tame inflation. Auto, NBFC and Banking stocks will be in focus ahead of RBI credit policy. Traders' focus will be on mid-cap and small stocks due to the impressive Q1 results announcement," Chandan Taparia further stated.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 2 stocks to buy today, 8th August.

Technical Pick:

Persistent System

Buy at CMP of Rs 4882, stop-loss: Rs 4770, target price: Rs 5100, duration: 2 to 3 days.

Persistent has formed base near 4620-4650 zones and inched higher. It has given range breakout on lower degree charts and supports are gradually shifting higher. Buying is visible across NIFTY IT space which may support the ongoing move. It formed a strong bullish candle on daily scale with surge in volumes which has bullish implications. The momentum indicators are placed in the positive territory which may take the price to higher zones, said Chandan Taparia.

Fundamental Pick:

TCS

Buy at CMP of Rs 3483, target price: Rs 3790, timeframe: 1 year

Given TCS's size, order book and exposure to long duration orders and portfolio, it is well positioned to withstand the weakening macro environment and ride on the anticipated industry growth. Owing to its steadfast market leadership position and best-in-class execution, the company has been able to maintain its industry-leading margin and demonstrate superior return ratios, 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.