Chandan Taparia of Motilal Oswal Recommends 3 Stocks To Buy Today, 16th Aug

On August 16, Indian indices opened down on mixed global cues. The Nifty fell 100.10 points or 0.52 percent to 19,334.40 while the Sensex fell 285.44 points or 0.44 percent to 65,116.48 in the opening session.

Commenting on the outlook of Nifty, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support is at 19300 then 19250 zones while resistance is at 19560 then 19620 zones. Now it has to hold above 19420 zones to witness a bounce towards 19560 then 19620 zones whereas support exists at 19300 then 19250 zones.

Commenting on the outlook of Bank Nifty, Chandan Taparia said, "Bank Nifty support at 43750 then 43500 zones while resistance at 44250 then 44444 zones. Now till it holds below 44250 zones weakness could be seen towards 43750 then 43500 zones while on the upside hurdle is seen at 44250 then 44444 levels."

Market Outlook

"Indian market is expected to open on a weak note on account of sharp decline across the global markets amid report that the Fitch ratings agency could downgrade several large U.S banks, weeks after rival Moody's cut the ratings of 10 mid-sized lenders. US markets declined over 1% to close 1-month low followed by European and Asian markets dropped 1% each. Moreover, expectation of US Fed to hike interest rate in the September policy meeting and concern of weakness in the China economy growth dampen the global market sentiment," said Chandan Taparia.

"People's Bank of China unexpected lowered interest rates by 15bps to bolster an economy that's facing fresh risks, stoking concerns about the impact on global growth. As a result, US Dollar Index surged to 1-month high and 30-year bond yield spiked to 1-year high. Gift Nifty slipped nearly 100 points or 0.5% while US Future are trading flat. Focus on US Fed minutes of meeting and IIP data today," Chandan Taparia further stated.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 3 stocks to buy today, 16th August.

Technical Pick:

Reliance Industries

Buy at CMP of Rs 2577, stop-loss: Rs 2520, target price: Rs 2700, duration: 2 to 3 days

Reliance Ind has given range breakout on daily chart and holding well above the same. It is in overall uptrend and trading above all short term moving averages. It formed a strong bullish candle on daily scale with noticeable volumes which has bullish implications and supports are gradually shifting higher. The momentum indicators are placed in the positive territory which may take the price to higher zones, said Chandan Taparia.

Fundamental Pick:

M&M

Buy at CMP of Rs 1545, target price: Rs 1725, duration: 1 year

Mahindra Tractors has launched its lightweight tractor platform Mahindra Oja in Cape Town, South Africa. Oja platform, which will be the first light weight tractor from The Mahindra Group, can help double its tractor export volumes over the next three years. After kickstarting its journey in India, the lightweight Oja range will be launched in North America, ASEAN, Brazil, Australia, South Africa, Europe and the SAARC region. Mahindra will also make its debut in the ASEAN region, starting with Thailand in 2024.

Infosys

Buy at INR1393, target prce: INR1600, duration: 1 year

Infosys, announced a 5 year, EUR 1.5b (USD 1.6b) deal win from Liberty Global, taking over the build and operations for entertainment and connectivity platforms. Infosys will also license these platforms and offer services to new operators and new markets. Liberty Global is an existing client of Infosys (IT and IMS for platforms). €1.5b deal win is for 5 years and should start in Q4 post regulatory approvals are in place. Hence, impact on FY24 revenues will be small (c40bp max) but critical as our estimate for FY24 CC USD growth is 2.6% YoY. Deal is extendable to 8 years, adding €800m to deal TCV over three years. Assuming the deal starts in 4Q for five years, it will contribute a maximum of c150bp to FY25 USD revenue estimates.

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.