TECHM, BEL, JSWENERGY: Top picks by Chandan Taparia of MOFSL; check targets

Nifty50 has formed a small bodied bearish candle on a daily frame but has started to form higher lows from the last two sessions

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The Nifty Index opened positive and continued buying interest in the first tick but failed to hold above 24,450 levels and consolidated within a narrow band for the rest of the day. It moved inside the range of the first hour and managed to close above 24,300 marks. It formed a small bodied bearish candle on a daily frame but has started to form higher lows from the last two sessions. Now it has to hold above 24,200 zones for an up move towards 24,500 then 24,650 zones while supports have shifted higher towards 24,200 than 24,050 zones.

 

On option front, Maximum Call OI is at 24,500 then 25,000 strike while Maximum Put OI is at 24,300 then 24,000 strike. Call writing is seen at 24,400 then 24,500 strike while Put writing is seen at 24,300 then 24,400 strike. Option data suggests a broader trading range in between 23,800 to 24,800 zones while an immediate range between 24,100 to 24,500 levels.

 

Bank Nifty Index opened on a positive note and strong momentum was seen towards 55,957 marks in the first hour of the session. However, it failed to hold at higher zones and drifted lower towards 55,300 zones and remained volatile in the latter part of the day. It formed a small bodied candle on daily scale as buying is visible at lower levels but momentum is missing at higher zones. Now it has to hold above 55,250 zones for an up move towards 56,000 then new life high towards 56,500 zones while on the downside supports are seen at 55,250 then 55,000 levels.  READ STOCK MARKET LATEST UPDATES TODAY LIVE

Stock recommendations

Buy TECHM | CMP ₹ 1,495 | SL ₹ 1,445 | TGT ₹ 1,600     

Tech Mahindra Stock has broken out of a rounding bottom pattern with higher than average traded volumes. It is surpassed above its 50 DEMA with the RSI indicator rising to confirm the bullish momentum.

Buy BEL | CMP ₹ 317 | SL ₹ 305 | TGT ₹ 340

BEL Share Price has given a range breakout on the daily chart with a surge in buying volumes visible. It is respecting its 50 DEMA with slight dips being bought into. The MACD indicator is rising which confirms the positive sentiment.  ALSO READ | PSU defence stock up 4% on heavy volumes; nears record high. Do you own?

Sell JSWENERGY 29th May FUT | CMP ₹ 468 | SL ₹ 483 |TGT ₹ 434                                       

JSW Energy Stock has breached below its key support levels on the daily scale with a strong bearish candle. The RSI indicator is declining which confirms the downward momentum.

 

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