Trading Guide: 2 Stock Recommendations By Chandan Taparia of Motilal Oswal On Thursday, 4th April

Indian stock market is expected to open on a positive note after the US Fed Chairman Jerome Powell reaffirmed his view to cut rates this year. Asian market surged up to 2% (Hong Kong, China and Taiwan index close today) and modestly gained US Future.

Gift Nifty is up 50 points or 0.3%. Rally on PSU bank to continue ahead of RBI credit policy outcome tomorrow. Tech stocks will be in focus due to favourable risk-reward ratio and TCS will announce Q4 results next week. The government hiked windfall tax and rising oil prices will be positive for upstream oil companies, said Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal.

Nifty Outlook Today

Nifty immediate support at 22350 then 22222 zones while resistance at 22650 then 22750 zones. Now it has to continue to hold above 22350 zones to witness an up move towards 22650 and 22750 zones while on the downside support exists at 22350 and 22222 zones, the analyst stated.

Bank Nifty Outlook

Bank Nifty support is at 47250 then 47000 zones while resistance is at 48000 then 48250 zones. Now it has to continue to hold above 47250 zones to extend the move towards 48000 then 48250 zones while on the downside support is seen at 47250 and 47000 zones, Chandan Taparia further added.

Stocks To Buy Today

Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal has recommended 2 buy/sell trading guides on Thursday, 4th April.

Canara Bank

Buy at CMP: Rs 605, stop-loss: Rs 590, target: Rs 640, duration: 2-3 Days

Canara Bank is in an overall uptrend and gave a range breakout on daily chart. It gave the highest daily close after eighteen sessions with a good surge in volumes. The stock is also holding well above its 50 DEMA and good buying interest is seen across the PSU space. Momentum indicator Relative Strength Index (RSI) is also holding at higher zones which indicates overall strength in the stock.

Poonawala Fincorp

Buy at CMP: Rs 493, target: Rs 580, upside 18%, duration: 1 year

PFL reported the highest-ever quarterly disbursements of ~INR96.8b which grew ~52% YoY. Momentum sustained with AUM growth of 54% YoY in Q4. Asset quality continued to improve with GNPA below 1.2%. With strong leadership teams across functions, realignment of customer and product segments, and focus on leveraging technology/analytics, PFL is well-positioned to scale up and deliver superior risk-adjusted returns. We model a CAGR of ~42%/51% for AUM/PAT over FY23-FY26 and expect PFL to deliver a RoA/RoE of ~5.0%/~20% in FY26, 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.