Chandan Taparia of Motilal Oswal Recommends 3 Stocks To Buy Or Sell On Friday 16th June

On Thursday, the Indian stock market's three-day rise came to an end as the 30-stock index BSE Sensex lost 310 points and closed at 62,971 while the 50-stock index Nifty dropped 67 points and ended at 18,688 levels. At 43,443 level the Bank Nifty index dropped 544 points. The Nifty June future wrapped up at 18745.45, a premium of 57.35 points compared to the previous session's premium of 62.35 points, and the Nifty Put/Call Ratio (OI) dropped from 1.23 to 1.13 levels.

Commenting on the outlook of Nifty, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said "Nifty immediate support at 18636 then 18550 zones while resistance at 18777 then 18888 zones. Now it has to hold above 18676 zones to witness an up move towards 18777 and 18888 zones while on the downside support exists at 18636 and 18550 zones."

Commenting on the outlook of Bank Nifty, Chandan Taparia said "Bank Nifty support at 43250 then 43000 zones while resistance at 43750 then 44000 zones. Now till it holds below 43750 zones weakness could be seen towards 43250 then 43000 levels while on the upside hurdle is placed at 43750 then 44000 levels."

Stock Market Outlook On Friday 16th June

Chandan Taparia said the market is expected to open on a positive note on account of favorable global markets. US market closed to 14-month high, strong FIIs buying interest and impressive domestic economy data may have positive impact in the market.

"Dow Jones and Nasdaq composite climbed up over 1% after the US Retail sales data announced better than expectation on Month of Month basis. European stocks closed with losses on Thursday, except for the UK exchange, after the European Central Bank's (ECB) rate hike decision. Germany Index slipped over half percent while UK Index managed to ended positive territory. Asian equities are witnessing mixed bag on expectation of more stimulus from China and overnight rally in the US market. US Future marginally decline due to quarterly expiry and rebalancing today while market will be shut on holiday. SGX Nifty is up quarter percent. Expects positive for metal stocks on account of increased base metal price on LME and China stimulus to improve global demand," said Chandan Taparia.

Stocks To Buy On Friday 16th June

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

Asian paints

Buy at Rs 3294, stoploss Rs 3235, target price Rs 3415, timeframe 2-3 Days.

Asian paints has given range breakout on daily chart and holding well above the same. Buying is visible across FMCG space which will support the up move. The momentum indicators on the weekly and monthly scale are placed in bullish territory and supports are gradually shifting higher.

CEAT

Buy at Rs 2073, target price Rs 2375, timeframe 1 year.

During CEAT's Analyst Meet, the management reiterated its aim of enhancing its market position through FY26 by 1) maintaining leadership in the 2W segment (28% market share now), 2) gaining market share in PV/CV to 18-19%/11-12% from 15%/7% now, and 3) doubling export revenue from INR20b currently. It expects to continue to improve margins as it focuses on increasing its market share through premiumization and a better product mix rather than offering discounts. We have upgraded our EPS estimates for FY24E/FY25E by 7%/13% to factor in better-than-expected gross margin and improving product mix.

Ashok Leyland

Buy at current market price of Rs 157, target price Rs 180

At its 2023 Investor Meet, Ashok Leyland (AL) highlighted its aspiration to grow profitably in domestic M&HCV, expand non-M&HCV revenue at a faster pace, and the inflection point for Switch Mobility (EVs) as it prepares to launch six platforms over the next two years. The management expects the ongoing uptrend in M&CHV to continue, with AL focusing on increasing its market share by 3pp to 35%. It aims to expand its play in LCV to increase its market share substantially, 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.