Nifty outlook, stocks to buy today: Chandan Taparia's trading guide, May 14

Nifty share price: Nifty has formed a bearish candle on the daily frame and has formed higher lows over the last two trading sessions

Nifty share price:

The Nifty index opened on a slightly negative note on Tuesday, and witnessed volatile swings on both sides during the first hour of trade. Until midday, the buy-on-dips strategy was working well as the index took support multiple times near the 24,700 zone. However, in the second half, Nifty share price slipped below the 24,700 mark, indicating profit booking after a sharp rally of over 900 points in the previous session. 

 

The break below the support level suggests some cooling off in momentum, though the broader trend still remains positive. It has formed a bearish candle on the daily frame and has formed higher lows over the last two trading sessions. Nifty share price has to cross and hold above 24,750 zone for an upmove towards 25,000 then 25,200 zones. Nifty supports are placed at 24,500, and  then 24,350.

 

 

On the options front, Maximum Call OI is at 25,000, followed by 25,500 strike, while Maximum Put OI is at 24,000, followed by 23,500 strike. Call writing is seen at 25,000 and 24,800 strike, while Put writing is seen at 24,200 and 24,000 strike. Option data suggests a broader trading range between 24,100 to 25,100 zones, while an immediate range between 24,400 to 24,800 levels.  Follow Stock Market Updates Today LIVE

 

Bank Nifty share price

 

Bank Nifty Index opened marginally lower but remained highly volatile in a wider range of 500 points, between 55,000 to 55,500 zones in the initial hour of the session. Later, Index failed to hold the 55,250-zone and gradually drifted lower towards 54,900 levels in the latter part of the session. It formed a small bearish candle on daily scale as some cool off was seen from higher zones and closed near 55,000 zones. Now it has to cross and hold above 55,000 zones for a bounce towards 55,555, followed by 55,750 levels while on the downside support is seen at 54,750 and 54,500 zones.

 

Stocks to Buy for Upside, May 14:

 

Buy MAX HEALTH CARE | CMP: ₹1,172 | Stop Loss: ₹1,130 | Share price target: ₹1,249

 

Max Health share price has given a 'falling supply trend line' breakout on the daily chart and managed to close above the same. Momentum indicator RSI is positively placed, which has bullish implications.

 

Buy CITY UNION BANK | CMP: ₹190.74 | Stop Loss: ₹185 | Share price target: ₹200

 

CUB stock has given a 'flag' breakout on the daily chart and formed a strong bullish candle. The breakout is supported by a surge in volume, which has bullish implications. MACD indicator is headed up to confirm the bullish momentum.        

 

Buy BEL | CMP: ₹335 | Stop Loss: ₹328 | Share price target: ₹350                                                            

 

BEL share price has given a 'trendline' breakout on the daily chart and is trading near life highs. Buying is visible across defence stocks which may support the ongoing up move. ADX line is rising, which confirms the strength of the uptrend.

   

======================

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