Chandan Taparia of Motilal Oswal Recommends 3 Stocks To Buy Or Sell On Wednesday, 19th July

Following an intraday high of 19,819.45, the Nifty 50 rose 37.80 points, or 0.19%, to end the day at 19,748.25. The Sensex climbed 205.21 points, or 0.31%, to close at 66,795.14 after intraday reaching a new record high of 67,007.02 on Tuesday's closing session.
Commenting on the Nifty prediction for today, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support is at 19650 then 19515 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 19650 and 19515 zones.

Commenting on the Bank Nifty prediction for today, Chandan Taparia said Bank Nifty support is at 45250 then 45000 zones while resistance is at 45655 then 45905 zones. Now it has to continue to hold above 45250 zones for an up move towards 45655 then 45905 levels while on the downside support is seen at 45250 then 45000 zones.

Market Outlook Today

"Dovish commentary from a key European Central Bank official, cooling US Inflation print and strong quarterly results announced by Bank of America and Morgan Stanley lifted across the global market between 0.5% to 1%. Expects Indian bourses to join hands with the global markets on account of rally in the global market, impressive quarterly results by domestic corporates and fresh foreign fund inflow will be positive for the market sentiment.

Equity markets advanced in Asia as stocks extended their rally in the US while the New Zealand dollar climbed on easing inflation. Stocks rose at the open in Japan, South Korea and Australia between 0.5% to 1%. Focus on Reliance Industries as it would be the last day to buy the stock to be eligible to receive shares of Jio Financial Services as part of a demerger plan. Defence stocks will be in focus that the India, Argentina discuss purchase of Tejas jets, BrahMos missiles. Gift Nifty is up 0.3% or 60 points," said Chandan Taparia.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 3 stocks to buy today Wednesday, 19th July.

Technical Pick:

Auro Pharma

Buy at CMP of Rs 753, stop loss Rs 735, target Rs 785, timeframe: 2 to 3 days

Auro pharma is in overall uptrend and continuously forming higher top-higher bottom formation on weekly chart. It has given channel breakout on daily chart and holding well above the same. It has formed a bullish candle on daily scale and perfectly respecting 20DEMA. The momentum indicators are placed in the bullish territory and supports are gradually shifting higher, said Chandan Taparia.

Fundamental Pick:

Havells India

Buy at CMP of Rs 1334, target price Rs 1580, duration: 1 year

Havells India (HAVL) has the highest total addressable market (TAM) of INR2.2t among listed companies in the consumer durable space, due to its diverse product portfolio, presence in various sectors, and entry into the large home appliances segment through the acquisition of Lloyd. The sector is likely to post a 10% CAGR over the next five years with higher growth estimated for white goods that will benefit HAVL in its structural growth. HAVL is focusing on building distribution channel and in-house manufacturing. Even Lloyd's market share is estimated at 10%+ in room ACs vs. ~8% a few years back. We expect HAVL to maintain its premium valuations given: a) the 29% earnings CAGR over FY23-25 and b) strong return ratios (RoE/ROCE of 21%/20% and RoIC of 30% in FY25), said Chandan Taparia.

IndusInd Bank

Buy at INR1390, target price INR1600, timeframe: 1 year

IndusInd Bank (IIB) reported an in-line 1QFY24 performance with PAT at INR21.2b (up 30% YoY), aided by healthy NII growth (up 18% YoY) and lower provisions (down 21% YoY). Loan growth was healthy at 22% YoY to INR3.0t with traction in both Corporate and Consumer Finance books. We estimate IIB to deliver ~27% earnings CAGR over FY23-25, while its RoA/RoE would expand to 2.1%/17.5%. We reiterate our BUY rating with a revised TP of INR1,600 (premised on 1.7x FY25E ABV), 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.