Trade Call: 3 Stock Picks By Chandan Taparia of Motilal Oswal On Wednesday, 17th Jan

On Wednesday, benchmark indices started the day sharply down. The Nifty was down 203.50 points, or 0.92%, at 21,828.80, while the Sensex was down 755.28 points, or 1.03%, at the opening. This bearish trend came after hawkish remarks made by representatives of the US Federal Reserve and the European Central Bank, a significant loss of 7% in HDFC Bank's ADR and a surge of 7% in the US 10-Year bond yield and the US Dollar Index to a one-month high.

Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal said among the global markets, US market slipped up to 0.5% amid concern that central banks might be in no rush to cut interest rates after the US Federal Reserve Governor Christopher Waller striking a less dovish tone than expected. As a result, US 10-Year bond Yield surged by 10bps to 1-month high at 4.05% and Dollar Index spiked 50bps to above 103 level.

On Wednesday, Gift Nifty decline by 0.7% on account of heavyweights HDFC Bank, M&M, ICICI Bank and Wipro ADR declined sharply. Results - Asian Paints, LTI Mindtree, ICICI Prudential, Oracle Finance, IIFL Finance and Happiest Mind. IIP Data (US).

Nifty Outlook

Nifty immediate support at 21950 then 21850 zones while resistance at 22222 then 22350 zones. Now it has to hold above 22000 zones, for an up move towards 22222 then 22350 zones while on the downside support exists at 21950 and 21850 zones, said the analyst.

Bank Nifty Outlook

Bank Nifty support at 47777 then 47500 zones while resistance at 48400 then 48636 zones. Now till it holds above 48000 zones momentum can be seen towards 48400 then 48636 zones while on the downside support is seen at 47777 then 47500 levels, stated Chandan Taparia.

Stocks To Buy Today

Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal has recommended the below stocks to buy today on 17th January 2023.

Titan

Buy at CMP of Rs 3820, stop-loss: Rs 3740, target: Rs 3950, duration: 2-3 Days

Titan has given consolidation breakout on daily chart and managed to close above the same. It has formed a strong bullish candle on daily scale and gave a highest daily close ever. It is perfectly respecting 20 DEMA and momentum indicator RSI is positively placed which has bullish implications.

Cipla

CMP Rs 1302, TP: Rs 1540, 18% Upside, Buy

Under One India business, Cipla is looking to strengthen its consumer health segment by transforming it into an INR10b business over the next few years from INR6b in FY23.

To fuel growth over the next few years in US, Cipla has planned differentiated launches in the Peptide, Injectables, and Inhalation segments. We expect a 9% sales CAGR over FY24-26.

We expect a 13% earnings CAGR over FY24-26, driven by its market-beating growth in the prescription segment, efforts to enhance the NA product pipeline with differentiated products, & improving profitability in the consumer health business, said Chandan Taparia.

ITC

CMP: Rs 472, TP: Rs 535, 13% Upside, Buy

GQG Partners have upped their stake in ITC in Q3FY24. As per data GQG Partners Emerging Markets Equity Fund and Goldman Sachs GQG Partners International Opportunities Fund together owned a 2.79% stake in ITC vs 1.58% stake in 2QFY24.

ITC has benefited from a consistent and stable tax environment for cigarettes in recent years. We anticipate this trend to persist, leading to enhanced cigarette volumes and improved earnings visibility in the medium term.

We expect ITC to post 13% earnings CAGR over FY23-25 given its strong visibility over the medium-term and the defensive nature of its business, Chandan Taparia stated.

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.