Chandan Taparia of MOFSL recommends buying these stocks on January 21

Bajaj Finserv stock has broken out of a flag and pole pattern on the daily chart with a large bodied bullish candle suggesting strength. The RSI indicator is rising which confirms the upward momentum

Nifty index opened positive and after the slight slip in the initial hour, it witnessed buying interest throughout the day. It failed to cross 23400 marks but managed to close in gains of around 140 points. It formed a bullish candle on daily frame with long lower shadow indicating support based buying can be seen. Now it has to hold above 23333 zones for an up move towards 23500 then 23700 zones while supports are placed at 23150 then 23050 zones.

 

On option front, Maximum Call OI is at 24000 then 24500 strike while Maximum Put OI is at 23000 then 23200 strike. Call writing is seen at 24000 then 23600 strike while Put writing is seen at 23000 then 23300 strike. Option data suggests a broader trading range in between 22900 to 23800 zones while an immediate range between 23200 to 23500 levels.

 

Bank Nifty Index opened on a positive note and gradually extended the momentum towards 49650 zones in the latter part of the session. It formed a bullish candle on daily scale as good buying was visible across heavyweights and ended with decent gains of around 810 points. Index relatively outperformed the broader market and now it has to hold above 49000 zones for a bounce towards 49750 then 50000 levels while on the downside support is seen at 49000 then 48750 zones.

 

Buy Bajaj Finserv | CMP: Rs 1,735 | Stop loss: Rs 1,685 | Target: Rs 1,850 

Stock has broken out of a flag and pole pattern on the daily chart with a large bodied bullish candle suggesting strength. The RSI indicator is rising which confirms the upward momentum.

 

Buy Biocon | CMP: Rs 401 | Stop loss: Rs 388 | Target: Rs 430        

Price has broken out of a consolidation on the daily chart reaching new all time high levels. It is respecting its 50 DEMA with slight dips being bought into. The ADX line has turned up suggesting the uptrend has strength to support it.  

 

Buy Hind Copper | CMP: Rs 251 | Stop loss: Rs 240 | Target: Rs 275 

Stock has reversed up from major support levels with higher than average on the daily chart. Buying was visible across the metals space which may support the up move. The MACD indicator is headed up to confirm the bullish momentum.  

 

Disclaimer: Chandan Taparia is head of derivatives & technicals, wealth management, Motilal Oswal Financial Services.