Day Trading Call: 2 Stock Picks By Chandan Taparia of Motilal Oswal On Wednesday, 7th Feb

Ahead of the RBI policy meeting to be announced tomorrow, modest gain US market, fall in US 10-year bond yield, cooling down Brent crude price to a 1-month low, hope of China stimulus and FIIs turned into net buyers, may open domestic bourses on a positive note.

US Index gained over a quarter per cent as the market digested comments from Federal Reserve policy to delay hiking interest rates. Gift Nifty is up 0.7%. Banks, realty, NBFC and auto stocks will be the focus ahead of the RBI policy meeting to be announced tomorrow, said Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal.

Nifty Outlook Today

Nifty immediate support at 21750 then 21650 zones while resistance at 22100 then 22222 zones. Now it has to hold above 21850 zones for an up move towards 22100 and 22222 zones while on the downside supports are placed at 21750 and 21650 zones, said Chandan Taparia.

Bank Nifty Outlook Today

Bank Nifty support at 45600 then 45250 zones while resistance at 46000 then 46500 zones. Now it has to cross and hold above 45750 zones for an up move towards 46000 then 46500 levels while on the downside support is seen at 45600 then 45250 zones, stated the analyst.

Stocks To Buy Today

Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal has recommended the below stocks to buy or sell on Wednesday, 7th February.

HCL Tech

Buy at CMP of Rs 1623, stop-loss: Rs 1580, target: Rs 1700, duration: 2-3 Days

HCL Tech is in overall uptrend and continuously forming higher top-higher bottom on higher degree time frame. It has given range breakout on daily chart and managed to close above the same. It has formed a strong bullish candle on daily scale and perfectly respecting 20 DEMA.

Momentum indicator Relative Strength Index (RSI) has given positive crossover which indicates momentum to pick up in coming sessions.

Birla Corporation

Buy at CMP of Rs 1527, duration: 1 Year

The company's consolidated EBITDA was at Rs 3.8b during the December 2023 quarter (up 162% YoY) v/s estimated Rs 3.6b. Sales volume was up 13% YoY to 4.20mt (est. 4.26mt). EBITDA/t was at Rs 901 (v/s estimated Rs 851) against Rs 388/Rs 691 in 3QFY23/2QFY24. OPM was at 16.4% v/s estimated at 15.3%. Profit was at Rs 1.1b v/s estimated Rs 1b, said the analyst.

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.