Day Trading Guide: Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy/Sell On Friday

On Thursday, the Nifty wrapped up 33 points higher at 20103 levels in the domestic market; DIIs sold shares for Rs. 51 crore while FIIs purchased shares worth Rs. 295 crore; and at the time of writing, the GIFT Nifty is up 0.03%, all of which are indicative of good domestic cues on Friday. In contrast, US indices ended in the positive range of 0.8% to 1%, European indices closed in the positive range of 1% to 2%, and today Asian indices are trading in the positive range of 0.4% to 1.8%, indicating bullish global signals.

Nifty Outlook

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal believes that Nifty immediate support at 20050 then 19950 zones while resistance at 20167 then 20250 zones. Now it has to hold above 20100 zones for an up move towards 20167 then 20250 zones whereas support exists at 20050 then 19950 zones.

Bank Nifty Outlook Today

Bank Nifty support at 45600 then 45250 zones while resistance at 46350 then 46500 zones. Now it has to continue to hold above 45750 zones for an up move towards 46350 then 46500 zones while on the downside support seen at 45600 then 45250 levels, said Chandan Taparia.

Market Outlook Today

Better than expected US retail sales data, ECB president indicating to pause interest rate hike in the next policy meeting and People's Bank of China cuts Reserve Requirement Ratio boosted across the global markets sentiment. Asia, Europe and US markets gained 1% each after strong economic reports revived speculation the Federal Reserve will be able to engineer a soft landing even if it keeps interest rates higher for longer. ECB hiked interest rate by 25bps yesterday to 4.5% while People's Bank of China cut Reserve Requirement Ratio by 25bps. Nasdaq Composite surged 1% after the SoftBank's Arm Holdings soared almost 25% above their Nasdaq debut yesterday. Gift Nifty is up 56 points or 0.3% and US Future marginally gain. Back home, fall in Wholesale Inflation (WPI), strong growth in July Industrial production data and decline in August inflation will be positive for the market sentiment, said Chandan Taparia.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has picked up 1 technical and 1 fundamental stock to buy on Friday, 15th September.

Technical Pick:

ONGC

Buy at CMP of Rs 188, stop-loss: Rs 183, target: Rs 198, duration: 2 to 3 days

ONGC has given range breakout on daily chart and holding well above the same. It has formed a strong bullish candle on daily scale and base is gradually shifting higher. The momentum indicators are placed in the positive territory which may take the price to higher zones.

Fundamental Pick:

HDFC Bank

Buy at CMP-1642, target: Rs -2070, duration: 1 year

In FTSE Semi Annual Rejig today there is an expectation of $498mn inflows in HDFC Bank. The stock has nicely consolidated in recent past and can be in good momentum today due to inflows. HDFC Bank had reported a steady quarter with healthy growth in NII and PAT, driven by lower provisions and stable asset quality.

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.