Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Or Sell On Monday, 31st July

The Nifty starts over 19,600 on Monday, while the Sensex drops by around 100 points to start the day at 66,077.97. Commenting on Nifty prediction, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support is at 19560 then 19433 zones while resistance is at 19750 then 19867 zones. Now it has to hold above 19560 zones to extend the move towards 19750 then 19867 zones while on the downside support is placed at 19560 and 19433 zones.

Commenting on Bank Nifty prediction, Chandan Taparia said, "Bank Nifty support at 45250 then 45000 zones while resistance at 45750 then 46000 zones. Now till it holds below 45650 zones some weakness could be seen towards 45250 then 45000 levels while on the upside hurdle is seen at 45750 then 46000 zones. (Mix cues in both indices)."

Market Outlook

"Rally in the across the global markets, persistent buying interest by foreign portfolio investors in the domestic equity and impressive quarterly results, may open Indian bourses on a positive note. Asian markets gained 1% in the opening sessions today after reported significant decline US July Inflation data, boosting investor confidence in a soft landing for the U.S. economy. In the domestic front, Foreign portfolio investors (FPIs) continue with their buying spree in July with a net infusion of Rs 45,365 crore in Indian equity markets on stable macroeconomic fundamentals and steady earnings growth. This week, market will focus on PMI data across the globe like US, Europe, Asia including India also. BoE policy decision and Q2 Euro zone Q2 GDP data will be focus this week. Traders focus on power, auto, realty, pharma and PSU Banking stocks after announcing impressive quarterly results. China stimulus hope may positive for metal stocks," said Chandan Taparia.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 2 stocks to buy today i.e. Monday, 31st July.

Technical Pick:

Cummins

Buy at CMP of Rs 1955, stop-loss: Rs 1900, target price: Rs 2050, timeframe: 2 to 3 days

Cummins has given range breakout on daily chart and managed to close above the same. It is holding well above 20 DEMA and gave highest weekly & daily close ever. Momentum indicator RSI has also given falling supply trend line breakout on daily chart and supports are gradually shifting higher, said Chandan Taparia.

Fundamental Pick:

IDFC First Bank

Buy at CMP of Rs 84, target price: Rs 100, duration: 1 year

IDFC First Bank reported 1QFY24 PAT of INR7.7b (6% beat, up 61% YoY), boosted by robust fee income and lower provisions. NII grew 36% YoY. Business growth remained strong as the loan book was driven by healthy growth in Commercial Finance and retail loans. IDFCFB is well poised to deliver healthy loan growth. We thus estimate 32% earnings CAGR over FY23-25 and RoA/RoE of 1.3%/13.2% in FY25, said Chandan Taparia.

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.