Nifty faces 24,500 hurdle; Divi's Labs, MCX, Eternal on analyst radar

Chandan Taparia of Motilal Oswal Financial Services has recommended three stocks to buy today: Divi's Laboratories, MCX, and Eternal.

Disclaimer: This article is written by Chandan Taparia, head derivatives & technicals, Wealth Management, Motilal Oswal Financial Services. Views expressed are his own. Readers' discretion is advised.

 

Nifty strategy today 

 

Nifty index opened on a flattish note and broke the crucial 24,500 level in the first hour and sustained below it for the entire trading session. It witnessed short-term profit booking as the index failed to sustain at higher levels. It formed a bearish candle on the daily frame and closed below the lows of the last four trading sessions. Now it has to cross and hold above the 24,500 zone for an up move towards 24,650, then 24,750, while support can be seen at 24,350, followed by 24,250.

 

 

On the option front, Maximum Call OI is at 24,500, then 24,700 strike, while Maximum Put OI is at 24,500, then 24,400 strike. Call writing is seen at 24,500 then 24,700 strike, while Put writing is seen at 24,500 then 24,400 strike. Option data suggests a broader trading range between 24200 and 24800 zones, while an immediate range is between 24300 and 24600 levels.

 

Bank Nifty strategy today 

 

Bank Nifty index opened marginally lower and drifted towards 57,150 in the initial hour of the session. However, a gradual recovery was seen towards 57,500 levels, but it failed to hold at higher levels in the latter part of the session. It formed a bearish candle on the daily scale with a longer lower shadow, as selling pressure is seen at higher zones, and it is holding below its 20 DEMA. Now, till it holds below 57,500, weakness could be seen towards 57,000, then 56,750 levels, while on the upside, a hurdle is seen at 57,750 and 58,000.

Top Stocks to Buy - Recommendations by Chandan Taparia

 

Divi's Laboratories

 

Rating: Buy | CMP: ₹8,578 | SL: ₹8,350 | Target: ₹9,000

 

Divi's Laboratories is in an overall uptrend and continuously forming higher highs and higher lows on a larger time frame. It has given Pole & Pennant breakout on the daily chart, and the base is shifting higher. Momentum indicator MACD is positively placed.  

 

MCX

 

Rating: Buy | CMP: ₹2,895 | SL: ₹2,800 | Target: ₹3,100

 

MCX has given a falling supply trend line breakout and is holding well above the same. The breakout is supported by a surge in volumes, which has bullish implications. It has managed to surpass the 20 DEMA and negated the lower top-lower bottom of the previous four weeks. It has formed a strong bullish candle, and RSI is positively placed.

 

Eternal

 

Rating: Buy | CMP: ₹318 | SL: ₹308 | Target: ₹335

 

Eternal has formed a bullish candle and is inching higher, now on the verge of a fresh breakout above the ₹320 zone. It is witnessing buying from the 10 EMA, with small dips getting bought. RSI has also given a bullish crossover, supporting the positive setup.