1 Technical & 1 Fundamental Stock To Buy Today As Recommended By Chandan Taparia of Motilal Oswal

On Thursday, Nifty closed 57 points down at 19387 levels and India VIX closed at 11.7 levels(down 0.2%). In the last trading session, FIIs purchased shares worth Rs. 1525cr, while DIIs purchased shares worth Rs. 5797cr. The GIFT Nifty is currently down 19.50 points, which is a bad indicator for domestic cues. On Thursday, Nifty August future closed at 19395.60 with a premium of 8.90 points v/s 13.10 point discount in the last session. Bank Nifty futures OI plummeted by 6.37% to 21.74 Lakhs, while Nifty futures OI fell by 1.22% to 1.27 Cr. The Nifty Put/Call Ratio (OI) fell from 1.05 to 0.99, while the India VIX dropped from 11.73 to 11.70.

Nifty Outlook

Nifty immediate support is at 19300 then 19250 zones while resistance is at 19480 then 19560 zones. Now it has to hold above 19350 zones, for an up move towards 19480 and 19560 zones whereas supports are placed at 19300 then 19250 zones. (A hold below 19250 zones may open the downside swing towards 19100 and 18888 zones), said Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal.

Bank Nifty Outlook

Bank Nifty support is at 44150 then 44000 zones while resistance is at 44750 then 45000 zones. Now it has to continue to hold above 44250 zones for an up move towards 44750 then 45000 zones while on the downside support is seen at 44150 then 44000 levels, said Chandan Taparia.

Market Outlook Today

Indian stock market is expected to open on a weak note on account of sharp decline in both US and Asian markets as investor nervousness ahead of US Federal Reserve Chair Jerome Powell's speech at Jackson Hole. Moreover, US Jobless data fell to a 3-week low and the former Federal Reserve Bank official said a reaccelerating US economy could prompt higher interest rates dampening the global market sentiment, said Chandan Taparia.

"Dow jones slipped nearly 400 points and as attention turned to the Jackson Hole speech by Fed Chair Jerome Powell and Chip maker Nvidia lost almost all its gains after blowout earnings.. Expects stock specific action and traders buy on decline strategy in the market. Expects positive for defense stocks after the government announce large order to encourage domestic players. Expects positive for publication and paper stocks after the news that the key panel on education policy in India released recommendations on national curriculum that include revising school books," stated Chandan Taparia.

Stocks To Buy Today

Here we have listed 1 technical stock and 1 fundamental stock to buy today as recommended by Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal.

Technical Pick:

Birla Soft

Buy at CMP of Rs 475, stop-loss: Rs 462, target: Rs 500, timeframe: 2 to 3 days.

Birla soft is in an overall uptrend and forming a higher top-higher bottom formation on the weekly chart. It has given consolidation breakout on a daily scale and managed to close above the same. Buying is visible across Nifty IT space which may support the ongoing up move. The momentum indicators are placed in the positive territory which may take the price to higher zones, said Chandan Taparia.

Fundamental Pick:

BEL

Chandan Taparia has a positive view on BEL at CMP of Rs 134 for a duration of 1 year.

The Indian government on Thursday, August 24, approved capital acquisition proposals worth Rs 7,800 crore to enhance the operational capabilities of the Indian Armed Forces. This would be positive for defence companies like BEL, 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.