Trade Call: 2 Stock Picks With Buy Call By Chandan Taparia of Motilal Oswal On Monday, 8th Jan

Indian stock market to open on a flat note ahead of key inflation data from the US, Japan and China to be released this week after a mixed bag of economy data in US announced on Friday.

On the domestic front, Q3FY24 earnings season would kick start this week with Infosys and TCS reporting on 11th Jan, followed by HCL Tech, and Wipro on 12th January. Back home, Gift Nifty is trading flat to positive after a modest gain on previous day, according to Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst of Motilal Oswal.

The analyst said he expects the rally on realty stocks to continue due to a pause in interest-rate hikes, demand for luxury housing, and strong pre-sales booking. Rising capex and attractive dividend yield will be positive for PSU stocks like RAIL, power and capital goods stocks. Financial and NBFC stocks will be positive after reporting impressive corporate quarterly business updates.

Nifty Outlook

Nifty immediate support at 21600 then 21500 zones while resistance at 21850 then 22000 zones. Now it has to hold above 21650 zones, for an upside move towards 21850 and 22000 zones while supports are seen at 21600 and 21500 zones.

Bank Nifty Outlook

Bank Nifty support at 47777 then 47500 zones while resistance at 48500 then 48636 zones. Now it has to continue to hold above 48000 zones for an up move towards 48500 then recent life time high of 48636 marks while on the downside support is seen at 47777 then 47500 zones.

Stocks To Buy Today

Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst of Motilal Oswal has recommended 2 stocks to buy today, 8th January 2024.

L&T

Buy at CMP of Rs 3521, SL: Rs 3450, TP: Rs 3650, duration: 2-3 Days

Larsen is trading at life time high territory and strong uptrend is intact on monthly and weekly scale. On daily scale the stock is on the verge of giving range breakout after fourteen sessions above 3530 zones. The stock is holding on to its 20 DEMA and supports are gradually shifting higher. RSI (relative strength Index) is on the verge of giving bullish crossover which suggests momentum to pick in coming sessions. The stock is strong outperformer within Capital goods space and likely to scale new record highs in coming sessions.

GAIL

Buy at CMP: 164, TP: 195, Duration 1 Year

GAIL has signed a 10-year LNG import deal with trader Vitol to buy about 1mn mtpa of the superchilled fuel from 2026. India wants to raise the share of natural gas in its energy mix to 15% by 2030 from the current 6.3%. This long-term LNG deal with Vitol by GAIL will augment its large LNG portfolio and will contribute to bridging India's demand and supply gap of natural gas. Gail is our top pick for CY24 given turnaround in petrochemicals, rising transmission volumes & capacity expansion. We expect 32% CAGR in EBITDA over FY23-26E and ROE of 15% in FY26 (vs. 9.5% in FY23), said the analyst.

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.