Nifty strategy, 3 stocks to buy today by Chandan Taparia of Motilal Oswal

Chandan Taparia of Motilal Oswal recommends buying KEI Industries, Sammaan Capital and Samvardhana Motherson, decodes Nifty strategy

Nifty share price: 

Nifty index opened positive and after crossing 25,300 zones in the initial tick, it failed to hold at higher zones and slipped lower for most part of the day. It gave up the gains of the previous two sessions and fell near the 25,050 zone. It witnessed some recovery towards the end and finally closed near 25,150 zones after a roller coaster day of tug of war between the bulls and bears. It formed a bearish candle with a longer lower shadow on the daily frame, which indicates buying is intact at support levels despite the profit booking at higher zones. Now it has to hold above 25,050 zones for an up move towards 25,350 then 25,450 zones while supports can be seen at 25,050 then 24,900 zones.

 

On option front, Maximum Call OI is at 25,200 then 25,500 strike while Maximum Put OI is at 25,200 then 25,000 strike. Call writing is seen at 25,200 then 25,300 strike while Put writing is seen at 25,200 then 25,100 strike. Option data suggests a broader trading range in between 24,700 to 25,700 zones while an immediate range between 24,900 to 25,400 levels.

 

Bank Nifty index opened on a flattish note near 56,600 zone and witnessed a corrective move in the first half of the session as the index tested 56,250 zone. However, it witnessed a smart recovery from the lows in the second half of the session as the index tested the 56,550 zone. It closed the volatile day of trade near 56,500 zones with losses of around 130 points. It formed a small bodied candle with shadows on either sides and negated its higher lows formation of the last three session. Now it has to hold above 56,250 zones for an up move towards 56,750 then 57,000 zones, while on the downside, support is seen at 56,250, then 56,000 levels.  READ LATEST STOCK MARKET UPDATES LIVE

Stocks to buy today: Recommendations by Chandan Taparia

Buy SAMMAANCAP, CMP: ₹164.77,  Stop-loss: ₹159,  Target: ₹172

Sammaan Capital stock has formed a bullish “Pennant” pattern on the daily chart, suggesting a continuation of the uptrend.  The ADX line is rising, which confirms the strength of the uptrend.

Buy KEI, CMP: ₹4,361, Stop-loss: ₹4,220, Target: ₹4,640

KEI Industries stock has given a range breakout with higher-than-average traded volumes on the daily scale. It is respecting its 50 DEMA with slight dips being bought into. The MACD indicator is rising, which confirms the bullish momentum.

Buy MOTHERSON, CMP: ₹105 Stop-loss: ₹100, Target: ₹113

Samvardhana Motherson stock has given a range breakout on the daily chart with a surge in volumes. It has formed a base around its 50 DEMA. The MACD indicator is rising to confirm the positive momentum.

 

(Disclaimer: This article is by Chandan Taparia, head derivatives & technicals, wealth management, Motilal Oswal Financial Services. Views expressed are his own.)