Hindustan Zinc, Canara Bank: Chandan Taparia's strategy for top stocks

Nifty index opened flattish and dripped lower in the first half of the session. It broke 25100 zones but bulls were seen active around these levels and pulled the index in the second half of the day. It recovered towards 25250 zones but witnessed volatility within a small range throughout the day. It formed a small bodied candle on the daily frame with longer lower shadow indicating smart buying was seen at lower levels. Now it has to hold above 25150 zones for an up move towards 25250 then 25350 zones while supports can be seen at 25050 then 24900 zones.

 

 

On option front, Maximum Call OI is at 25500 then 25300 strike while Maximum Put OI is at 25000 then 25200 strike. Call writing is seen at 25500 then 25200 strike while Put writing is seen at 25200 then 25000 strike. Option data suggests a broader trading range in between 24700 to 25700 zones while an immediate range between 25000 to 25400 levels.

 

Bank Nifty index opened on a flattish note and gradually drifted lower towards 55150 zones in the first half of the session. However, good recovery was seen from lower levels as the rate sensitive index extended the momentum towards 55650 levels in the latter part of the session. It formed a bullish candle on daily scale as good buying interest was seen at lower levels and it took support near its 50 DEMA. Now it has to hold above 55500 zones for an up move towards 55750 then 56000 zones while on the downside supports can be seen at 55250 then 55000 levels.

 

Buy HINDZINC CMP 482 SL 466 TGT 517

 

Stock has given a range breakout on the daily chart with a large bodied bullish candle. The RSI indicator is rising which confirms the positive momentum.

 

Buy CANBK CMP 123 SL 119 TGT 130

 

Stock has formed a “Pole & Flag” pattern on the daily chart suggesting a continuation of the uptrend. The ADX line is rising which confirms the strength of the uptrend.  

 

Buy HEROMOTOCO CMP 5472 SL 5300 TGT 5800

 

Stock is in an overall uptrend and is respecting its 20 DEMA support zones with slight dips being bought into. The Stochastic indicator is positively placed which has bullish implications. 

(Disclaimer: Chandan Taparia is the head of derivatives and technicals, wealth management at Motilal Oswal Financial Services. Views expressed are his own.)