Analyst at Motilal Oswal suggests buying these three stocks today; details

Nifty outlook: Nifty has to cross and hold above 25,800 for strength to rebuild towards 25,900, then 26,000 marks, while support can be seen at 25,600 then 25,500 zones

Nifty index opened gap up by nearly 100 points and gave up strength right from the initial tick. It cascaded most part of the day and wiped off its gains of the previous session. It took some respite at 25,600 zones and witnessed slight bit of recovery in the last hour. It formed a bearish candle on the daily frame with longer lower shadow indicating buying at support levels and negated its lower highs – lower lows formation of the last five sessions. Now it has to cross and hold above 25,800 for strength to rebuild towards 25,900 then 26,000 marks while support can be seen at 25,600 then 25,500 zones.

 

 

On option front, Maximum Call OI is at 26,000 then 25,800 strike while Maximum Put OI is at 25,700 then 25,500 strike. Call writing is seen at 26,000 then 25,900 strike while Put writing is seen at 25,700 then 25500 strike. Option data suggests a broader trading range in between 25,400 to 26,200 zones while an immediate range between 25,500 to 26,000 levels.

 

Bank Nifty index opened gap up near 59,767 marks but failed to hold at higher zones and drifted lower towards 59,450 zones in the initial hour of the session. However recovery was seen from the lower levels towards 59,700 but it remained highly volatile in a  wider range of 400 points. It formed a bearish candle on daily scale as selling pressure was seen at higher zones but negated the formation of lower highs after six sessions as supports are intact at lower zones. Now it has to hold above 59,500 zones for an up move towards 59,750 then 60,000 levels while on the downside support is seen at 59,250 then 59,000 zones.

Stock recommendations 

Buy SBIN |CMP ₹1,028 |SL ₹9,90 |TGT ₹1,100

Stock is in an overall uptrend and is respecting its 20 DEMA with slight dips being bought into. The ADX line is rising which confirms the strength of the uptrend.   

Buy HINDALCO |CMP ₹936 |SL ₹905 |TGT ₹1,000

Stock is has retested its breakout with higher than average traded volumes on the daily chart. The RSI indicator is giving a bullish crossover to confirm the upwards momentum.     

Buy OIL |CMP ₹448 |SL ₹430 |TGT ₹475

Stock has broken out from a “Double Bottom” pattern with a massive bullish candle on the daily scale. The MACD indicator is rising to support the positive momentum.    

 

(Disclaimer: Chandan Taparia, Head Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services. Views expressed are his own.)