Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Or Sell On Tuesday 20th June

Tuesday saw a fall of 494 points or 0.77% in the 30-share BSE index to 62,889.61 on weak global cues, while the NSE Nifty fell 79 points or 0.42% in the beginning of trading to 18,677.40 level. This slump appeared after the rupee fell 10 paise to 82.04 US dollar in early trading sessions. Commenting on the outlook of Nifty Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said Nifty immediate support at 18710 then 18676 zones while resistance at 18888 then 19000 zones. Now it has to cross and hold above 18777 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18710 and 18676 zones.
"Bank Nifty support at 43500 then 43333 zones while resistance at 44044 then 44250 zones. Now it has to cross above 43750 zones for a bounce toward 44044 then 44250 zones while a hold below 43750 could see change in stance and weakness towards 43500 then 43333 marks," Chandan Taparia stated.

Market Outlook

"Anxiety about Chinese growth and the lack of fresh stimulus from Beijing pulled down Asian markets. In the morning today, People Bank of China's cut one-year loan prime rate (LPR) and five-year LPR by 10bps each, in line with expectation. European market declined 1% each as concern of UK short term bond yield spiked to 15-year high ahead of Bank of England (BoE) policy to be announce tomorrow. However, undertone bullish sentiment in the market on account of strong domestic economy data, stable oil price and impressive direct tax collection will be positive for the market sentiment. Expects positive for metal stocks after China cut loan prime rate. Defence stocks will be in focus as Prime Minister US visit commence from tomorrow on ahead of defence deal between US-India," said Chandan Taparia.

Stocks To Buy Or Sell On Tuesday 20th June

Chandan Taparia has recommended these stocks to buy today.

Technical Pick

HDFC Life

Buy at Rs 626, stop-loss: Rs 605, target price: Rs 665, time frame: 2-3 Days

Hdfc life has given major range breakout on daily chart with noticeable volumes. It has formed a strong bullish candle and base is shifting higher. Buying is visible across Insurance space which will support the up move, said Chandan Taparia.

Fundamental Pick

HDFC Ltd

Buy at Rs 2655, target price Rs 3290, timeframe: 1 year

Company has agreed to sell 90% of its stake in its education loan subsidiary, HDFC Credila, to Barings Private Equity and Chryscapital group for Rs 9,060 crore. We expect HDFC to deliver an AUM and PAT CAGR of ~14% each over FY23-25, which will translate into a core RoA/RoE of 2%/14% in FY25, 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.