Chandan Taparia of Motilal Oswal Recommends 3 Stocks To Buy Or Sell On Tuesday, 18th July

On July 18, the Indian indices began the day strongly, with the Nifty over 19800. The Nifty was higher by 79.20 points or 0.40% at 19,790.70, while the Sensex was higher by 321.48 points or 0.48% at 66,911.41. The BSE MidCap and BSE SmallCap indices saw gains of up to 0.4% in the broader markets.

Commenting on the outlook of Nifty today, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support is at 19515 then 19420 zones while resistance is at 19850 then 20000 zones. Now it has to hold above 19650 zones to extend the move towards 19850 then 20000 zones while on the downside support is intact at 19515 and 19420 zones.

Commenting on the Bank Nifty prediction, Chandan Taparia said "Bank Nifty support at 45150 then 45000 zones while resistance at 45655 then 46000 zones. Now it has to continue to hold above 45250 zones for an up move towards its recent high of 45655 marks then new life highs towards 46000 zones while on the downside support is seen at 45150 then 45000 levels."

Market Outlook

"Mixed bag opening in the Asian markets and overnight US market closed on a 15-month high, may open domestic markets on a positive note. European stocks are on the back foot after disappointing economic data from China hit risk sentiment. France Index slipped 1% due to fall in Luxury goods stocks after Richemont signaled slowing demand in its quarterly update. Both UK and Germany Index declined 0.3% each. Expressed high optimism for domestic equities, citing strong foreign inflows and a moderation in U.S. inflation will be positive for the market sentiment. Expects, rally on banking stocks to be continue on hope of good quarterly results. Real Estate, IT and Auto stocks will be in focus today ahead of quarterly results. Retail sales and IIP data will be announce in US. SGX Nifty is up 0.3% while US Future marginally decline," said Chandan Taparia.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal have recommended 3 stocks to buy today Tuesday, 18th July.

Technical Pick:

DLF

Buy at CMP of Rs 498, stop loss Rs 490, target price Rs 515, duration: 2 to 3 days.

DLF is in overall uptrend and given a narrow range breakout on daily chart. It has formed a strong bullish candle on daily scale and holding well above short term moving averages. The momentum indicators are placed in the bullish territory and supports are gradually shifting higher, said Chandan Taparia.

Reliance Industries

Buy at CMP of Rs 2795, target price: Rs 2,825, timeframe: 1 year

Jio Financial Services will be included in total 19 NSE indices with effect from July 20, after the demerger of Reliance Industries' financial services business into Reliance Strategic Investments. Reliance Strategic Investments will be renamed as Jio Financial Services. As per our calculation, the book value per share of JFS works out to ~INR190. Our current SOTP-based TP of INR2,825 for RIL does not include the JFS value; hence, this event could lead to value-unlocking potential for RIL, said Chandan Taparia.

HDFC Bank

Buy at CMP INR1679, target price INR2070

HDFCB reported a steady quarter with 30% YoY growth in PAT (8% beat). This was supported by lower provisions and higher 'other income'. NII grew 21% YoY, while PPoP grew 22% YoY to INR187.7b (in line). Loan growth was driven by strong traction in Commercial and Rural Banking and a sequential pick-up in retail. Deposits registered a modest growth of 1.6% QoQ. Asset quality ratios remained broadly stable as slippages increased to INR58b. The restructured book declined to 27bp of loans (vs. 31bp in 4QFY23). PCR declined 81bp QoQ to 74.9%. We estimate the merged entity to deliver net earnings of INR654b/798b/957b over FY24-26, translating into RoA of 1.9-2.1%, 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.