Day Trading Guide: Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Today, 28th Aug

Nifty wrapped up at 19266 levels on Friday, down 121 points, while FIIs sold shares worth Rs. 4638 crore and DIIs purchased Indian shares for Rs. 1414 crore. Nifty August future wrapped up at 19250.30, a 15.50 point reduction from the previous session's 8.90 point premium. Bank Nifty futures OI rose by 1.11% to 21.98 lakhs, while Nifty futures OI grew by 5.36% to 1.34 crore. The Nifty Put/Call Ratio (OI) dropped from a level of 0.99 to 0.83. India VIX increased by 3.27% from levels of 11.70 to 12.08.

Nifty Prediction

Commenting on the outlook of Nifty today, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support is at 19100 then 19000 zones while resistance is at 19350 then 19444 zones. Now till it holds below 19350 zones, weakness could be seen towards 19100 then 19000 zones whereas hurdles are placed at 19350 then 19444 zones.

Bank Nifty Prediction

Bank Nifty support is at 44000 then 43750 zones while resistance is at 44444 then 44750 zones. Now it has to continue to hold above 44200 zones to witness a bounce towards 44444 then 44750 zones while a hold below the same could drag it towards 44000 then 43750 levels, said Chandan Taparia.

Stock Market Outlook Today

Indian stock market is expected to open on a positive note on account of strong opening in the Asian markets, modest gain in US Future and US stocks bounced back on Friday (gained 1%) despite Fed chief Jerome Powell's hawkish stance on Jackson Hole speech on account of investors digested comments from Federal Reserve Chair Jerome Powell to hike interest rate, said Chandan Taparia.
"European shares trimmed earlier gains after Federal Reserve Chair Jerome Powell said the US central bank is prepared to raise interest rates further if needed.

Asian markets follow the U.S. equities with solid gains on Monday after Jerome Powell said the Federal Reserve would "proceed carefully" on whether to raise interest rates again, while signalling policy will remain tighter for longer on Friday. Brent crude fell from the recent high, USDINR declined to a 2-week low and cool off in vegetable prices in the last few days are positive signs in the market," the analyst further stated.

Stocks To Buy Today

The following stocks have been recommended to buy today, Thursday, August 24, by Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal.

Technical Pick:

Asian Paints

Buy at CMP of Rs 3259, stop-loss: Rs 3200, target: Rs 3380, duration: 2 to 3 days.

Asian Paints has formed a strong base near 3150 - 3160 zones and gave a range breakout after eight sessions. It formed a strong bullish candle and gave a falling supply trend line breakout with surge in volumes. RSI is giving positive crossover on daily scale which suggests momentum to pick up in coming sessions.

Fundamental Pick:

M&M Finance

Buy at CMP of Rs 295, target: Rs 370, duration: 1 year

MMFS has set three goals for sustainable growth and three goals for sustainable profitability. New businesses shaping up well and the company aims to enter new product segments. In the last four months, MMFS has regained the No.1 position in Tractors (among both banks and NBFCs). The company aims to reduce GNPAs to sub 6%.

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.