Day Trading Guide For Today: Chandan Taparia Recommends 2 Stocks To Buy/Sell On Tuesday

Weak Asian market openings, a sluggish start for Gift Nifty, issues with China's property crisis, a 16-year high in the yield on the US 10-year bond, and ongoing selling by FIIs might all lead to a weaker start for the domestic market. On Monday, Nifty closed 0.3 points up at 19675 levels, DIIs bought shares worth Rs.1579cr while FIIs sold shares worth Rs.2333cr, India VIX closed at 10.9 levels and currently GIFT Nifty is trading 72 points down indicating a weak domestic cue for Indian stock market today.

Nifty Prediction Today

Nifty immediate support is at 19550 then 19500 zones while resistance is at 19750 then 19850 zones. Now it has to hold crucial support of 19600 zones, for a bounce towards 19750 then a fresh move towards 19850 zones whereas supports are placed at 19550 then 19500 zones, said Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal.

Bank Nifty Prediction Today

Bank Nifty support is at 44444 then 44250 zones while resistance is at 45000 then 45250 zones. Now till it holds below 45000 zones some weakness could be seen towards its key level of 44444 then 44250 levels while on the upside hurdle is seen at 45000 then 45250 zones, said Chandan Taparia.

Market Outlook Today

"Weak opening in the Asian markets, problems in China's property industry, US 10-year bond yield spiked to 16-year high and continued FIIs selling, may open domestic market marginally lower. US market fought back to close higher up to 0.50% yesterday after a fall of last four trading sessions. US 10-Year bond yield surged to new 16-year high of 4.55% and Dollar Index spiked to 7-month high after the U.S. Federal Reserve recently suggesting that interest rates would remain higher for longer," stated said Chandan Taparia.

"European stocks fell to the lowest level in more than a month on Monday, hit by renewed fears for China's property sector and economy, as well as sharply higher bond yields across the developed world. UK, Germany and France Index declined 1% each. Germany bond yield spiked to 12-year high. Gift Nifty declined by 0.2% while US Future are witnessing mixed bag. Expects range bound market but stock specific action may continue. Auto stocks will be in focus on hope of strong demand ahead of festival season," the analyst further stated.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has picked up the below stocks to buy today on Tuesday.

Technical Pick:

Bajaj Finserv

Buy at Rs 1577, stop-loss: Rs 1545, target: Rs 1640, duration: 2 to 3 days

Bajaj Finserv has retested breakout on daily chart and inched higher. It has also given consolidation breakout on daily scale which indicates strength in the counter. It is holding well above 50 DEMA and supports are gradually shifting higher. The momentum indicators are placed in the positive territory which may take the price to higher zones.

Fundamental Pick:

Godrej Properties

Buy at Rs 1591: target: Rs 1915, duration: 1 year

The company announced that it has sold ~ 670 homes worth over INR 2,000 crore in its project, Godrej Tropical Isle, located in Sector 146, Noida. This is Godrej Properties' most successful ever launch in terms of the value and volume of sales achieved.

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.