Trade Call: 3 Stock Picks By Chandan Taparia of Motilal Oswal On Thursday, 8th Feb

Record closing in US market yesterday, S&P 500 hitting a fresh high of nearly 5000 level, impressive domestic corporate results and US Dollar Index fell to below $104/level, may open domestic bourses on a positive note. Nasdaq Composite soared 1% to a 2-year high after the Fed Bank of Boston President Susan Collins said she's looking for more evidence that inflation is durably set to align with the target before moving to cut rates, said Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal.

Nifty Outlook

Nifty immediate support at 21850 then 21750 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 21850 and 21750 zones, said the analyst.

Bank Nifty Outlook

Bank Nifty support at 45600 then 45250 zones while resistance at 46000 then 46500 zones. Now it has to continue to 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 Chandan Taparia.

Stocks To Buy Today

On Thursday, February 8th, Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal, has suggested buying or selling the stocks listed below.

SBI

Buy at CMP of Rs 675, stop-loss: Rs 655, target: Rs 710, duration: 2-3 Days

SBI is in overall uptrend and gave a consolidation breakout on weekly chart. Buying is visible across PSU space which may support the ongoing up move.

It has formed a strong bullish candle on daily scale and trading above all crucial moving averages. Momentum indicator Relative Strength Index (RSI) is positively placed which may take the price higher.

Apollo Tyres

CMP: Rs 553, Buy

Apollo Tyres reported better than expected earnings growth of 82%. Gross margins expanded 690bp YoY to 46.6% supported by RM cost tailwind. EBITDA grew 32% YoY with margin expansion of 410bp YoY to 18.3%. Among its tyre peers, Apollo Tyre offers the best blend of earnings growth, B/S deleveraging, improving capital efficiencies, and cheap valuations, said the analyst.

Cummins

CMP: Rs 2411, Buy

Cummins reported highest-ever quarterly earnings with a growth of 26% YoY, supported by robust demand in domestic and international markets. Its revenue grew by 16% and EBITDA by 31%. EBITDA margin stood at 21.2%. Cummins India has benefited from strong demand in the powergen and distribution segments and a revival in exports over the last two years and we expect the momentum to continue, stated 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.