Buy/Sell: 2 Stock Picks For Today By Chandan Taparia of Motilal Oswal On 18th Jan

Uncertainty about US Fed to cut interest rate after reported hotter than expected US retail sales data, nearly 2-month high US 10-Year bond yield, mixed bag of China economy data, spike in UK December Inflation, sharp decline in HDFC Bank ADR and FIIs over Rs10000cr net sellers yesterday may open domestic equity market on a weak note.

US market declined up to 0.5% and US VIX (Volatility Index) surged by 7%. European stocks are nursing heavy declines after an unexpected pickup in UK inflation prompted traders to pare bets on interest rate cuts from the Bank of England. Gift Nifty declined by 0.8%, said Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal.

Nifty Outlook

Nifty immediate support at 21450 then 21300 zones while resistance at 21700 then 21850 zones. Now till it holds below 21700 zones, weakness could be seen towards 21450 and 21300 zones while on the upside hurdle shifts lower at 21700 and 21850 zones, said Chandan Taparia.

Bank Nifty Outlook

Bank Nifty support is at 45500 then 45250 zones while resistance is at 46500 then 46750 zones. Now till it holds below 46500 zones more weakness could be seen towards 45500 then 45250 zones while on the upside hurdle is seen at 46500 then 46750 levels, stated Chandan Taparia.

Stocks To Buy Today

Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal have recommended the below stocks to buy or sell today on 18th January, Thursday.

BHEL

Buy at CMP Rs 207, SL: Rs 199, TP: Rs 225, duration: 2-3 Days

Bhel has given consolidation breakout on daily chart and holding gains in spite of heavy sell off in markets. It has formed a strong bullish candle on daily scale with noticeable volumes which may support the ongoing up move. It is perfectly respecting 20 DEMA and momentum indicator RSI is positively placed which has bullish implications.

LIC

Buy at CMP: Rs 888, TP: Rs 960, duration: 1 year

LIC has levers in place to maintain its industry-leading position and ramp up growth in highly profitable product segments like Protection, Non-PAR, and Savings Annuity. It recently launched 3 new products & has lined up more launches in the coming months to achieve double-digit growth in new business premiums in FY24.

During 1HFY24, LIC executed strategies to enhance the share of Non-Par products in overall individual biz (10.8% vs 8.9% in 1HFY23) which would boost margins upward.

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.