Chandan Taparia of Motilal Oswal Recommends 3 Stocks To Buy Or Sell On Tuesday, 27th June

The Indian stock market ended the day on a weak note on Monday owing to the unsteady global cues. The NSE Nifty rose by 25 points to close at 18,691 levels, the BSE Sensex dropped by 9 points to end at 62,970 levels, and the Bank Nifty climbed by 18 points to finish at 43,641 levels. Top gainers included the pharmaceutical, automobile FMCG, and consumer durable industries on Monday while PSU Bank and Oil & Gas, however, saw selling pressure and ended the day in the negative.

Commenting on the outlook of Nifty, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support is at 18550 then 18500 zones while resistance is at 18750 then 18888 zones. Now it has to hold above 18666 zones to witness an up move towards 18750 then 18888 zones while on the downside support exists at 18550 and 18500 zones.

Commenting on Bank Nifty, he said "Bank Nifty support at 43333 then 43250 zones while resistance at 43800 then 44044 zones. Now it has to continue to hold above 43500 zones for a bounce towards 43800 then 44044 zones while a hold below the same could see some weakness towards 43333 and 43250."

Market Outlook

Commenting on the stock market outlook on Tuesday, Chandan Taparia said the market is expected to open on a flat note on account of mixed bag opening in the Asian markets and marginally positive in US Future. "Domestic sentiment remain robust on account of monsoon deficiency sharply decline this month from 47% to 28%, S&P Global ratings agency saying India will be the fastest-growing economy among Asia Pacific nations and stable inflation will be positive for the market sentiment. European equities were steady after falling the most since mid-March last week, as investors mulled the risks from an attempted armed uprising in Russia and focused on the outlook for economic growth and monetary policy. The region's equity gauge is now on its longest losing streak in a year. Japan Index slipped 1%. However, Hong Index is up 0.50%. Expects market would be range bound as June F&O series expiry is scheduled on Thursday and market will be close tomorrow while SGX Nifty is up 30 points," he stated.

Stocks To Buy Today

Chandan Taparia has recommended 2 stocks to buy on Tuesday, 27th of June

Technical Pick:

Trent

Buy at the current market price of Rs 1753, stop-loss: Rs 1720, target price: Rs 1800. Timeframe: 2-3 Days
Trent has given a breakout of a pole and flag pattern on the daily scale which will take the prices to higher zones. Momentum indicator RSI is placed in the bullish zone which will support the up move, said Chandan Taparia.

Fundamental Pick:

M&M

Buy at CMP of Rs 1398, target price: Rs 1500, target frame: 1 year

Monsoon deficit has gone down to 28% from 47% with the rainfall in last couple of days. This augurs well for Auto companies like M&M. M&M aims to gain market share through product launches in lightweight tractors. While the outlook for tractors remains stable, we expect the Auto business to be the key growth driver for the next couple of years, said Chandan Taparia.

Sun Pharma

Buy at Rs 998, target price: Rs 1160, duration: 1 year

Sun Pharma gets Approval From Health Canada For Absorica LD, An Acne Drug. It is making efforts to introduce new products and develop existing products for alternate indications, 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.