Shares to buy or sell: Chandan Taparia recommends three stocks to buy today | Stock Market News

The Indian stock market traded lower on Friday, with both the benchmark indices Sensex and Nifty 50 falling over half a percent each, dragged by profit booking after a sharp rally in the previous session.

Selling was seen in IT, pharma, private banks and auto stocks, while metals, PSU banks and realty stocks gained. Broader markets, the midcap and smallcap indices, outperformed the frontlines as they were trading in the green.

Nifty 50 Outlook

Nifty 50 crossed 24,200 level on Thursday. It formed a big bullish candle on the daily frame and has started to form higher highs – higher lows from the last two sessions. Now, the index has to hold above 24,100 zones for an up move towards 24,400 then 24,600 zones while supports are placed at 24,100 then 23,900 zones, said Chandan Taparia, Head – Derivatives and Technicals, Wealth Management, MOFSL.

On option front, Maximum Call OI (Open Interest) was at 25,000 then 24,500 strike while Maximum Put OI was at 24,000 then 23,800 strike. Call writing is seen at 24,200 then 24,800 strike while Put writing is seen at 24,000 then 24,200 strike. Option data suggests a broader trading range in between 23,800 to 24,600 zones while an immediate range between 23,900 to 24,400 levels, he added.

Bank Nifty Outlook

Bank Nifty index was trading half a percent lower around 51,360 level on Friday. The index formed a strong bullish candle on the daily scale on Thursday.

“Bank Nifty index has got stuck in between its 50 DEMA and 200 DEMA from the last nine trading sessions and is likely to oscillate within this wider range. Now it needs to hold above 51,500 zones for a bounce towards 52,000 then 52,250 zones while on the downside support is seen at 51,250 then 51,000 levels,” Taparia said.

Chandan Taparia has recommended three stocks to buy today, January 3. According to him, these stocks – Muthoot Finance, Ultratech Cement and Mahindra & Mahindra (M&M) – are technically placed to see a decent upmove.

Stocks to buy or sell

Muthoot Finance | Buy | Target Price: ₹2,380 | Stop Loss: ₹2,195

Muthoot Finance stock has broken out of a consolidation zone at ATH (All-Time High) levels with a surge in buying volumes visible on the daily chart. The ADX line is headed up confirming the strength of the trend, Taparia said.

He has a ‘Buy’ call on Muthoot Finance shares with a target price of ₹2,380, suggesting a stop loss at ₹2,195.

Ultratech Cement | Buy | Target Price: ₹12,450 | Stop Loss: ₹11,480

Ultratech Cement share price has retraced upward from its 100 DEMA support zones after forming a bullish engulfing pattern on the daily chart. The MACD indicator is on the verge of giving a bullish crossover which may support the upward momentum.

Taparia recommends buying Ultratech Cement shares for a target of ₹12,450 per share, keeping stop loss at ₹11,480.

M&M | Buy | Target Price: ₹3,365 | Stop Loss: ₹3,130

Mahindra & Mahindra stock price has broken out of an ascending triangle on the daily chart with a large bodied bullish candlestick. The RSI momentum indicator is positively placed which has bullish implications, Taparia said.

He recommends a ‘Buy’ on M&M shares with a target price of ₹3,365 and stop loss at ₹3,130.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.