Chandan Taparia of Motilal Oswal Recommends 2 Stocks To Buy Today, 11th Aug

In early trade on Thursday, August 11, Indian indices opened flat as both the Sensex and the Nifty were down by 117.50 points or 0.18 percent to 65,570.68 and 35.40 points or 0.18 percent to 19,507, respectively amid mixed global cues.

Commenting on the Nifty prediction for today, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, Nifty immediate support at 19500 then 19420 zones while resistance at 19650 then 19700 zones. Now it has to hold above 19500 zones for an up move towards 19650 and 19700 zones whereas supports are placed at 19500 and 19420 zones.

Commenting on the Bank Nifty prediction, Chandan Taparia said Bank Nifty support at 44250 then 44000 zones while resistance at 44850 then 45050 zones. Now till it holds below 44850 zones weakness could be seen towards 44250 then 44000 zones while on the upside hurdle is seen at 44850 then 45050 levels.

Market Outlook

"Cooling down US July Inflation data and RBI kept interest rate unchanged, may open equity benchmark index on a flat note. US stocks ended marginally gained after cooling down US inflation data, reinforced speculation the Federal Reserve will pause its interest-rate hikes in September. Shares in Asia were mixed after US stocks ended steady on Thursday, as investors balanced cooling inflation with the prospect interest rates will remain elevated," said Chandan Taparia.

"Australian shares opened lower while, South Korea, Taiwan, Hong Kong equity rose modestly. Japan market is shut today. Back home, Gift Nifty declined by 50 points or 0.2%. However, a positive factor is the strong participation by retail investors, FIIs turn into net buyers, record July sales growth in Passenger Vehicle sales and good quarterly results will be positive for the market sentiment. Domestic IIP and US PPI (Producer Price Index) will be announced today," Chandan Taparia further added.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 2 stocks to buy today, 11th August.

Technical Pick:

M&M

Buy at CMP of Rs 1545, stop-loss: Rs 1515, target price: Rs 1600, duration: 2 to 3 days

M&M has retested major breakout zone on the daily chart and inched higher. It has taken support at 50 DEMA and gave a falling supply trend line breakout on daily chart. It formed a bullish candle on daily scale with surge in volumes which has bullish implications. The momentum indicators are placed in the positive territory which may take the price to higher zones, said Chandan Taparia.

Fundamental Pick:

Grasim

Buy at CMP of Rs 1831, target: Rs 2100, duration: 1 year

Grasim reported an EBITDA of INR6.7b (vs. est. INR5.2b) and OPM of 10.8% (vs. est. 8.2%) in 1QFY24. The beat was driven by VSF segment. Management believes that margins in both the key business segments, VSF and Chemical, have almost bottomed out. We largely maintain our EBITDA estimates for FY24/FY25. Margin in the VSF segment witnessed a strong recovery and we expect EBITDA/kg to be at INR13/INR18 in FY24/25, 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.