Day Trading Guide: Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Today, 31st Aug

Domestic equities yesterday ended on a flat note ahead of the release of Q1 GDP data. On Wednesday, the Sensex ended at 65,087.25, while the Nifty closed steady at 19347. Nifty August future closed at 19342.50 with a discount of 4.95 points compared to the previous session's discount of 5.55 points. Bank Nifty futures OI climbed by 4.43% to 23.58 Lakhs while Nifty futures OI declined by 2.71% to 1.33 Cr. The Nifty Put/Call Ratio (OI) dropped from a level of 0.97 to 0.91. India VIX decreased by 3.44% from levels of 12.22 to 11.80.

Nifty Outlook

Commenting on the outlook of Nifty today, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support at 19250 then 19200 zones while resistance at 19444 then 19480 zones. Now it has to cross and hold above 19350 zones for an upside move towards 19444 and 19480 zones whereas supports are placed at 19250 and 19200 zones.

Bank Nifty Outlook

Bank Nifty support at 44000 then 43750 zones while resistance at 44444 then 44750 zones. Now it has to hold above 44250 zones to witness an up move towards 44444 and 44750 zones while a hold below the same could drag it towards next support at 44000 and 43750 zones, said Chandan Taparia.

Market Outlook

Indian stock market is expected to open on a positive note on account of modest gain in US and Asian market, fourth straight day gain in the US market to close at 1-month high. Market will focus today on August series F&O expiry, domestic Q1 GDP data to be release post market today, August auto monthly sales data to be release tomorrow, MSCI rebalancing final day today (expects momentum on second half) and important US PCE data (inflation indication) to be announce today, said Chandan Taparia.

US market closed higher as fresh economic data signalled a cooling US economy, reinforcing expectations the Federal Reserve will pause rate hikes in September. European stocks closed marginally lower, wiping out gains in afternoon trading, as investors weighed mixed economic data across the US and euro area. Shares in Asia followed Wall Street higher as US economic reports pointed to slowing growth. Japan, Hong Kong, Australia, South Korea Index marginally gain. Realty, hotel and IT stocks will be in focus today, stated Chandan Taparia.

Stocks To Buy Today

Here are the 2 stocks to buy today on Thursday, 31st August as recommended by Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal.

Technical Pick:

TVS Motor

Buy at Rs 1380, stop-loss: Rs 1350, target: Rs 1450, duration: 2 to 3 days.

TVS Motor has given channel breakout on daily chart and holding well above the same. It is continuously respecting 50 DEMA and inching higher. It formed a strong bullish candle with noticeable volumes and supports are gradually shifting higher. The momentum indicators are placed in the positive territory which may take the price to higher zones, said Chandan Taparia.

BHEL

Chandan Taparia has a positive outlook on BHEL as the company has secured a large order from NTPC for setting up 2x800 MW Supercritical Thermal Power Project Stage-II at Lara in Chhattisgarh on EPC basis. The company has not disclosed the value of the EPC order, while the Lara project is estimated to be worth Rs15,530 cr. BHEL also received an order from NHPC Ltd worth Rs2,242 cr.

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.