Chandan Taparia of Motilal Oswal Recommends 3 Stocks To Buy Or Sell On Monday, 24th July

Indian equity benchmarks BSE Sensex and NSE Nifty 50 opened flat on Monday on weak global cues and disappointing quarterly results announced by IT major Infosys and Reliance Industries. Nifty began at 19,748.45 while the Sensex opened at 66,629.14 with a 0.08% negative gap. Commenting on the Nifty prediction for today, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support is at 19650 then 19550 zones while resistance is at 19900 then 20000 zones. Now it has to hold above 19700 zones to extend the move towards 19900 then 20000 zones while on the downside support is placed at 19650 and 19550 zones.

Commenting on the Bank Nifty prediction for today, Chandan Taparia said, "Bank Nifty support at 45850 then 45650 zones while resistance at 46369 then 46750 zones. Now it has to continue to hold above 45900 zones for an up move towards 46369 then new life high of 46750 zones while on the downside support is seen at 45850 then 45650 zones."

Market Outlook

Chandan Taparia said "US market witnessed mixed bag on Friday. The S&P 500 and techheavy Nasdaq 100 were little changed (down 0.2%) while Dow Jones ended flat. Stocks in Asia gained at the start of a busy week that will see a wave of central bank decisions as easing bets on policy change in Japan buoyed sentiment. Equities advanced across most major indexes in the region with Japanese shares leading gains by over 1% after a report late on Friday stated that Bank of Japan officials see little urgent need to address the side effects of their ultra-loose monetary policy. Auto stocks are expected to be positive on account of impressive monthly sales data, price hike and hope of good monsoon to improve domestic demand. Gift Nifty is showing marginally negative by 50 points."

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal have recommended 3 stocks to buy today Monday, 24th July.

Technical Pick:

Ashok Leyland

Buy at CMP of Rs 182, stop loss Rs 177, target price Rs 192, time frame: 2 to 3 days.

Ashok Leyland has given trend line breakout on daily chart and holding well above the same. It is in continuous uptrend and supports are gradually shifting higher. It has formed a strong bullish candle on the daily chart with noticeable volumes which will support the ongoing up move, said Chandan Taparia.

Fundamental Pick:

ICICI Bank

Buy at CMP of Rs 997, target price Rs 1150, duration 1 year

ICICI Bank reported another strong quarter (RoA of 2.4%), led by robust loan growth, stable asset quality and a slight decline in margins. Core PPoP grew 35% YoY, while NIMs moderated 12bp QoQ to 4.8%. Business growth was strong, with overall loans growing 18% YoY. Asset quality remained broadly stable with PCR at 83%. ICICIBC is well positioned to deliver steady earnings, supported by pristine asset quality and strong momentum in business growth, said Chandan Taparia.

Credit Access Grameen

Buy at CMP of Rs 1312, target price Rs 1660, timeframe: 1 year

Margin expansion and opex efficiencies led to a strong quarter. CREDAG delivered a robust operational performance with a 1QFY24 PAT of ~INR3.5b, which grew ~150% YoY. NII grew 58% YoY to ~INR7.2b, driven by a ~80bp QoQ expansion in reported NIM to 13%.We estimate an AUM/PAT CAGR of 24%/44% over FY23-FY25, 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.