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

Chandan Taparia of Motilal Oswal suggests buying HClTech, SAIL and Oil India; check all details here

Nifty share price:

Nifty index opened with a gap down by around 230 points, extended its weakness, but respected the support of the 24,900 zones. It attempted recovery but failed to cross 25,200 levels and inched lower in the first half. It witnessed swings and a tug of war between the bulls and bears throughout the session, but finally concluded the session with recovery and reclaimed its morning high as it inched towards 25,250 zones and closed with gains of around 130 points. 

 

It formed a bullish candle on the daily frame with a longer lower shadow, indicating that, despite the overall volatility, support-based buying is intact. Now it has to cross and hold above 25,200 for strength to rebuild towards 25,400, then 25,500 zones, while supports can be seen at 25,000 then 24,900 zones.

 

 

On the option front, the Maximum Call OI is at 25,500 then 26,000 strike, while the Maximum Put OI is at 25,000 then 24,300 strike. Call writing is seen at 26,000, then 25,500 strike, while Put writing is seen at 25,000, then 24,300 strike. Option data suggests a broader trading range in between 24,700 to 25,700 zones, while an immediate range is between 24,900 to 25,400 levels.

Bank Nifty outlook:

Bank Nifty index opened on a negative note and drifted lower towards the 58,100 zone in the initial hour of the session. However sharp recovery was seen from the lower levels in the latter part of the session. It formed a bullish candle on the daily scale as buying is visible at lower zones, and it is relatively outperforming the broader market. Now it has to cross and hold above 59,250 zones for a bounce towards 59,750 then 60,000 levels, while a hold below the same could see some weakness towards 59,000 then 58,750 zones.

Stocks to buy recommended by Chandan Taparia of Motilal Oswal

Buy HCLTECH CMP: ₹1,720, Stop-loss: ₹1,665, Target: ₹1,830

Stock has broken out from a consolidation zone on the daily chart after a bounce up from its 50 DEMA. The RSI indicator is rising, which confirms the bullish momentum.

Buy SAIL CMP: ₹155.56, Stop-loss: ₹152, Target: ₹165

Stock has formed a bullish “Pole & Flag” pattern, suggesting a continuation of the uptrend. The up move is supported by higher-than-average traded volumes. The ADX line is rising, which confirms the strength of the bullish trend.

Buy OIL CMP: ₹448, Stop-loss: ₹434, Target: ₹478

The Stock is retesting its breakout from a ‘Symmetrical Triangle” pattern with a strong bodied bullish candle on the daily chart. It has bounced up from its 200 DEMA support zones. The MACD indicator is rising, which confirms the positive momentum.  

 

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