Chandan Taparia of Motilal Oswal Suggests 2 Stocks To Buy Today, 27th Sept

The sharp drop in all global markets, ongoing FII selling, rising oil prices, and the weak Gift Nifty might lead to a dismal start to the Indian market. Nifty yesterday wrapped up flat to negative at 19669 levels after trading sideways on subdued global cues. FIIs sold Rs. 693 crore worth of equities shares while DIIs bought Rs. 715 crore worth of shares. Currently, GIFT Nifty is trading flat, which suggests that domestic trends are also on a mute note.

Nifty Outlook Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal believes Nifty immediate support is at 19550 then 19500 zones while resistance is at 19750 then 19850 zones. Now it has to hold a crucial support of 19600 zones, for a bounce towards 19750 then fresh move towards 19850 zones whereas supports are placed at 19550 then 19500 zones.

Bank Nifty Outlook Today

Bank Nifty support is at 44444 then 44250 zones while resistance is at 45000 then 45250 zones. Now till holds below 45000 zones some weakness could be seen towards its key level of 44444 then 44250 levels while on the upside hurdle is seen at 45000 then 45250 zones, according to Chandan Taparia.

Market Outlook Today

"Sharp decline across the global markets, continue FIIs selling and surging oil price, may open domestic market on weak note. US stocks slid on Tuesday as global yields continued to climb. New two-year Treasuries sold at 5.085%, the highest auction yield in more than 17 years. Ten-year yields rose about 2 basis points to extend levels not seen since 2007. The S&P 500 fell to the lowest since early June after a report showed consumer confidence in the world's biggest economy stalled this month, falling to 103 from a revised 108.7," said the analyst.

"In addition, US new-home sales fell in August to a five-month low. European stocks extended their declines to a fourth day on Tuesday, dragged lower by renewed worries over China's property sector and higher bond yields across the developed world. The dollar held onto gains from its recent rally. Benchmarks across the region declined, with stocks in Japan, Australia and South Korea all falling between 0.5% to 1%. Gift Nifty declined by 50 points," added Chandan Taparia.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has picked up 2 stocks with a buy rating for today.

Technical Pick:

Colpal

Buy at CMP of Rs 2068, stop-loss: Rs 2020, target: Rs 2170, duration: 2 to 3 days.

Colpal has given a trend line breakout on the daily chart with noticeable volumes and managed to close above the same. It is holding well above 20 DEMA and supports are gradually shifting higher. Buying is visible across FMCG 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.

Fundamental Pick:

Dalmia Bharat

As per media reports, cement companies are expected to take a price hike in Southern India from 1st Oct. between Rs30-Rs40 a bag. In North/Central, a price hike of Rs10/bag was taken in September while in East price of Rs50/bag has been sustained so far. Dalmia Bharat will benefit as it has a strong presence in East and South markets and is now present in Central too post-JP Associates cement division acquisition.

Tata Consumer

Tata Consumer has announced a bold entry into the fast-growing "Energy Drink" category with the launch of Say Never Energy Drink. Say Never Energy Drink, has been priced at an affordable price tag of Rs 10 for a 200 ml cup format. In the initial phase of the launch, it will be available at retail outlets in Karnataka and North markets. The company is following a two-pronged growth approach: 1) focusing on new growth engines such as Tata Sampann, NourishCo, Tata Soulfull, and the ready to-eat/ready-to-consume business (Tata Smart foodz); and 2) rapidly scaling up its distribution network along with digitization prowess across the supply chain, which will drive the next leg of growth.

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.