Chandan Taparia of Motilal Oswal Recommends 3 Stocks To Buy Or Sell On Friday, 7th July

On Friday's opening bell session, the BSE Sensex dropped 155 points to 65,628 and the NSE Nifty50 plummeted 46 points to 19,450 as equity benchmark indexes began with dips. While the BSE SmallCap index climbed 0.22 percent, the BSE MidCap index dropped 0.13 percent, the broader market was on a mixed view.

Commenting on the outlook of Nifty today, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support at 19300 then 19250 zones while resistance at 19600 then 19750 zones. Now it has to continue to hold above 19450 zones to extend the move towards fresh all time high levels of 19600 and 19750 zones while on the downside support shifts higher to 19300 and 19250 zones.

Commenting on the outlook of Bank Nifty he said "Bank Nifty support at 45000 then 44750 zones while resistance at 45500 then 45650 zones. Now it has to continue to hold above 45000 zones for an up move towards 45500 then its recent life high of 45650 zones while on the downside support shift higher at 45000 then 44750 levels."

Market Outlook

Indian stock market is expected to open marginally lower on account of weak global markets damping sentiment as strong US private hiring data fuelled bets the Federal Reserve will have to become more aggressive rate hike in its battle against inflation, said Chandan Taparia.

"Dow Jones slipped over 1% and Nasdaq Composite nosedived by 1% after data showed that the US companies added the most jobs in over a year in June, underscoring the ongoing strength of the labour market. Asian shares dropped today after surprisingly strong private hiring data in the US roiled Wall Street, pushing down equities as Treasury yields moved sharply higher.

Expectation for further rate hike by US Fed after reported strong hiring and backed by recent hawkish comments from Fed policymakers. Strong growth in rural sectors, USDINR fell to 1-month low and hope of good monsoon will boost the market sentiment. Traders buy on decline strategy continue and focus on mid-cap and small cap counters," he further stated.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, has recommended 3 stocks to buy today i.e. Friday, 7th July.

Technical Pick:

KPIT

Buy at CMP of Rs 1085, stop-loss Rs 1060, target price: Rs 1130, timeframe: 2 to 3 days.

KPIT is in overall uptrend and negated lower top-lower bottom formation after five trading sessions. It is on the verge of giving triangle breakout on daily chart and holding well above crucial moving averages. The momentum indicators are placed in the positive territory which will take the prices to higher zones, said Chandan Taparia.

Fundamental Pick:

Titan

Buy at CMP of Rs 3106

TTAN released its pre-quarterly update for 1QFY24 where it reported robust sales growth of 20% YoY, with double-digit growth across all key businesses. It added 68 stores during the quarter, taking its total retail presence (including CaratLane) to 2,778 stores at the end of 1QFY24. The jewellery division grew 21% YoY, with 18 new store additions, while watches & wearables segment registered a 13% growth and eyecare division sales increased by 10% YoY. Fragrances & fashion accessories segment grew 11% YoY, while CaratLane reported a 32% YoY growth. Earnings growth visibility remains strong for TTAN. It has ample opportunities for growth, given its sub10% market share in Jewelry and the ongoing challenges faced by its unorganized and organized peers, said Chandan Taparia.

Sobha

Buy at CMP of INR554

Sobha Ltd. reported yet another quarter of strong bookings of INR14.6b (11% beat to our estimate of INR13.2b) up 28% YoY. Sobha's share of sales stood at INR11b, up 19% YoY. The pre-sales were driven by encouraging response to 0.8msf of new area released at its existing projects in Kerala and NCR. Total volume for the quarter grew at 2.6% YoY to 1.4msf. During the quarter, the company achieved a 25% increase in realization driven by price hikes and change of product mix towards premium projects, 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.