Chandan Taparia’s Top 2 Stock Picks for Next Week: Nifty Index Soars, Bharti Airtel and Indian Hotels Recommended

Chandan Taparia: It was an incredible day as the Nifty index surged over 650 points in the last two trading sessions, hitting a new high. Despite the underperformance of the banking index, the major trend remains strong, and the Nifty held up well.

The bullish momentum is expected to continue as long as the Nifty stays above 24,500, potentially reaching 25,250 to 25,500 levels. The India VIX has dropped, showing lower volatility, which, along with a higher put-call ratio, supports the ongoing bullish trend.

Outlook for August Series

Chandan Taparia: The Nifty rollover is around 70%, slightly lower than the previous month and the three-month average.

However, short covering and open interest at lower levels indicate bullish momentum. Support for the Nifty is expected between 24,200 and 24,400, with potential targets of 25,200 to 25,500. In contrast, the Bank Nifty showed some weakness but could see short covering if it moves above 51,500 to 51,750.

Stock Recommendations for Next Week

1. Indian Hotels
   • Recommendation: Buy
   • Rationale: After a recent decline, Indian Hotels has recovered well, showing short covering and put writing. It broke out of a consolidation range above 620-625.
   • Target: 690
   • Support: 630
2. Bharti Airtel
   • Recommendation: Buy
   • Rationale: Bharti Airtel is one of the strongest telecom stocks, holding multiple support levels. It has given a consolidation breakout, indicating a fresh rally.
   • Target: 1575-1580
   • Support: 1485

Sector Insights

Chandan Taparia: According to the Relative Rotation Graph (RRG) analysis, Nifty IT is emerging as a strong performer, moving from the lagging to the improving quadrant and heading towards the leading quadrant.

Nifty Auto has also shown a good recovery, breaking out of consolidation with support from major players like Tata Motors and M&M. Nifty Pharma has been performing well recently and is expected to continue its upward trend. While the BFSI sector has potential, it may face hurdles, making Nifty IT, Nifty Auto, and Nifty Pharma the preferred sectors for generating better returns.