Day Trading Guide For Friday: Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Today—8th September

Despite negative global cues, the Nifty wrapped up 116 points higher at 19727 levels on Thursday. FIIs sold shares worth Rs. 759 crore while DIIs purchased shares worth Rs. 28 crore. The Nifty September future wrapped up at 19768.70 with a premium of 41.65 points compared to the previous session's premium of 47.80 points. Bank Nifty futures OI declined by 0.64% to 22.83 Lakhs, while Nifty futures OI climbed by 6.72% to 1.10 Cr. The Nifty Put/Call Ratio (OI) rose from a level of 1.32 to 1.39. India VIX dropped from 10.67 to 10.87 levels, a drop of 1.83%.

Nifty Outlook Today

"Nifty immediate support at 19650 then 19550 zones while resistance at 19888 then 19991 zones. Now it has to hold above 19650 zones for an up move towards 19888 then 19991 zones whereas support exists at 19650 then 19550 zones," said Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal.

Bank Nifty Outlook Today

"Bank Nifty support at 44444 then 44250 zones while resistance at 45250 then 45500 zones. Now it has to continue to hold above 44600 zones for an up move towards 45250 then 45500 zones while on the downside support shifts higher at 44444 then 44250 levels," said Chandan Taparia.

Market Outlook Today

"Mixed bag closing in the US market on Thursday and weak opening in Asian market, may open domestic bourses on a flat to positive note. Upbeat domestic economy data like strong GDP growth, impressive auto monthly sales data and robust Manufacturing PMI data will be positive for the market sentiment. European tech stocks decline after the Bloomberg reported that China plans to expand a ban on the use of iPhones in government-backed agencies and state companies," commented Chandan Taparia.

"Shares in Asia markets declined on impact of overnight fall in US market and a rally in the dollar index. Tech stocks slipped after reported that China ordered officials at central government agencies not to use iPhones and other foreignbranded devices for work. Focus on shipbuilding stocks on account of strong order booking. PSU Bank may be positive due to attractive valuation. Good opportunity to buy sugar stocks due to rising sugar price both in the domestic and international market," he further stated.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has suggested 2 stocks to buy today i.e. on 8th September, Friday.

Technical Pick:

Maruti

Buy at CMP of Rs 10280, stop-loss: Rs 10100, target: Rs 10650, duration: 2 to 3 days

Maruti has given trend line breakout on daily scale; retested the same and inching higher. It has negated lower highs- lower lows formation of past three trading sessions and formed a strong bullish candle on daily chart. The momentum indicators are placed in the positive territory which may take the price to higher zones.

Fundamental Pick:

SBI Life

Buy at CMP of Rs 1347, target: Rs 1570, duration: 1 year

The company reported the highest revenue among its listed peers in August. SBI Life's new business premium rose 16% to Rs 3,125 crore in August. On an overall weighted average basis, it rose 32% over last August. We estimate a 20% CAGR in APE over FY32-25 and estimate VNB margin to remain at ~29.7% in FY25.

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.