Day Trading Guide: Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy/Sell on Tuesday, 5th September

On Monday, Nifty closed 94 points up at 19529 levels amid weak global and domestic cues. The Nifty September future wrapped up at 19608.80 with a premium of 80 points compared to the previous session's premium of 76.80 points. Bank Nifty futures OI dropped by 4.45% to 22.29 Lakhs, while Nifty futures OI grew by 0.16% to 1.02 Cr. The Nifty Put/Call Ratio (OI) rose from a level of 1.30 to 1.37. India VIX dropped 3.50% from levels of 11.36 to 10.96.

Nifty Prediction Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support is at 19444 then 19350 zones while resistance is at 19580 then 19650 zones. Now it has to hold above 19444 zones for an up move towards 19580 and 19650 zones whereas support exists at 19444 then 19350 zones.

Bank Nifty Prediction Today

Bank Nifty support is at 44250 then 44000 zones while resistance is at 44750 then 45000 zones. Now it has to continue to hold above 44444 zones for an up move towards 44750 then 45000 levels while on the downside support is seen at 44250 then 44000 zones, said Chandan Taparia.

Market Outlook

"Weak opening in the Asian markets and marginally decline in US Future, may open domestic market on a flat note. However, strong domestic economy data will support Indian bourses from lower level. Impressive domestic GDP growth, surged in Manufacturing PMI for August, robust core sectors growth and strong August auto monthly sales data will be positive for the market sentiment. Expects, momentum continue on mid-cap and small cap stocks like power, capital goods, defence, PSU banks, cement and metal stocks. Gift Nifty decline by 30 points or 0.2%," said Chandan Taparia.

"Today, focus on US, India, UK and Germany August Service PMI and Composite PMI data. Power and power distribution companies will be in focus on account of rising power demand and strong order book. China announced stimulus on real estate sectors and surged in metal price on LME will be positive for the metal stocks. Brent crude surged to 9-month high and FIIs selling is a concern in the market," the analyst further stated.

Stocks To Buy Today

Here are the two stocks to buy today, September 4, as suggested by Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal.

Technical Pick:

L&T FH

Buy at CMP of Rs 129, stop-loss: Rs 126, target price: Rs 135, duration: 2 to 3 days.

L&T Finance is in overall uptrend and given a trend line breakout on daily chart. It formed a strong bullish candle on daily scale and holding well above 50 DEMA. The momentum indicators are placed in the positive territory which may take the price to higher zones.

Fundamental Pick:

Raymond

Buy at CMP INR1974, target: INR2600, duration: 1 year

Over the last two to three years, the company has revitalized its standing through strategic initiatives such as:

a) strengthening the senior leadership team across various management tiers

b) committing to technological advancements and instilling financial prudence with a healthy 21% reduction in Net Working Capital (NWC) over FY19-23 and turning net cash from peak net debt of INR16b

c) undertaking a comprehensive restructuring of the group's structure by divesting the FMCG business and announcing the demerger of lifestyle business and real estate

d) leveraging the brand and scale in each category to drive the quality of growth

These efforts are likely to be the key growth drivers going forward. We expect consolidated revenue/PAT growth of 10%/19% over FY23-25.

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.