Chandan Taparia of Motilal Oswal Recommends 3 Stocks To Buy Or Sell On Thursday, 27th July

Wednesday's closing bell saw major benchmark indices on the Indian stock market close higher. The Bank Nifty index ended 217 points higher at the 46,062 mark, the NSE Nifty index ended 97 points higher at 19,778 levels, and the BSE Sensex closed 351 points higher at 66,707.

Nifty Prediction

Commenting on the outlook of Nifty, Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal said, "Nifty immediate support at 19620 then 19560 zones while resistance at 19888 then 19991 zones. Now it has to hold above 19700 zones to extend the move towards 19888 then 19991 zones while on the downside support is placed at 19620 and 19560 zones."

Bank Nifty Prediction

Commenting on the outlook of Bank Nifty, Chandan Taparia said, "Bank Nifty support at 45800 then 45650 zones while resistance at 46250 then 46369 zones. Now it has to continue to hold above 45900 zones for an up move towards 46250 then recent life high of 46369 marks while on the downside support is seen at 45800 then 45650 zones."

Market Outlook Today

"Dovish statement by the US Fed Chairmen and highlighted moderate growth in the US economy along with strong openings in the Asian markets may open domestic market on a positive note. The US Fed Chairman said that the additional increases in interest rate will depend on incoming economy data. The Fed raised interest rates by 25bps to the highest level in 22 years in the range of 5.25% - 5.50% which is in line with expectation. Asian equity futures were mixed after the Federal Reserve hiked interest rates to a 22-year high and indicated that further tightening would be "data dependent." Contracts for Japan fell slightly, those for Australia were little changed and Hong Kong Index. In the domestic markets, Gift Nifty surged 0.5% while US Futures are witnessing a mixed bag. However, intra-day volatility may not be ruled on account of July series F&O expiry today," said Chandan Taparia.

Stocks To Buy Today

Chandan Taparia, Derivatives & Technical Analyst of Motilal Oswal has recommended 3 stocks to buy today i.e. Thursday, 27th July.

Technical Pick

IDFC

Buy at CMP of Rs 116, stop-loss Rs 112, target price: Rs 125

Idfc Ltd has given pole and pennant breakout on daily chart and managed to close above the same. It is in overall uptrend and also given narrow range breakout on weekly chart which has bullish implications. It has formed a strong bullish candle on the daily chart with noticeable volumes which will support the ongoing up move, said Chandan Taparia.

Fundamental Pick:

COLGATE

Buy at CMP of 1883, View: Positive

CLGT reported better-than-expected operating performance, driven by early signs of recovery in rural markets. It reported double-digit sale growth (up 10.6% YoY). - We believe that domestic volume grew 5% YoY. GP margin exceeded expectations, reaching 68.4% (est. 66.8%), driven by the growth of the oral care category. Furthermore, a decrease in staff costs and other expenses led to 440bpYoY improvement in EBITDA margin. Adj. PAT grew 33.9% YoY to INR 2.9b (est. INR2.6b). The company will continue to focus on innovation, productivity, and premiumization to revive growth, said Chandan Taparia.

REC

View: Positive, CMP: INR 173

REC reported a YoY growth of 21% in consolidated net profit at ₹2,968.05 crore. Revenue stood at ₹11,087.56 crore, registering a rise of 16.7% YoY. The company declared an interim dividend of ₹3/share. The board also proposed raising of funds through the placement of unsecured/secured NCDs of upto ₹1,05,000 crore, subject to the approval of shareholders, 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.