TVS Motors, Divi's Laboratories among top stock picks by Chandan Taparia

Chandan Taparia of MOFSL recommends buying Divi's Laboratories, TVS Motors and Dixon Technologies, citing strong technical setups and improving momentum.

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 index opened negative but absorbed the initial hour’s weakness and improved sentiment till midday and was followed by some range-bound move. It witnessed a strong bout of buying in the last hour, and it went on to cross the 24,250 zone. It formed a bullish candle on the daily frame and closed near its higher band. Now it has to hold above the 24,300 zone for an up move towards 24,450, then 24,550 zones, while support can be seen at 24,200 then 24,100 zones.  Bank Nifty index opened marginally lower, but a quick recovery was seen towards 57,650 zones in the initial hour of the session. However, it failed to hold at higher levels and drifted towards 57,250 levels but remained quite choppy in the latter part of the session. It formed a small bullish candle on the daily scale with longer upper and lower shadows, as buying is visible at lower levels, but momentum is missing at higher zones. Now it has to hold above the 57,500 zone for a bounce towards 57,750, then 58,000 levels, while a hold below the same could see some weakness towards 57,250, then 57,000 zones.  Three stock recommendations by Chandan Taparia   Divi's Laboratories  ‘Buy’ call for Divi’s Laboratories at the current market price of ₹8,744, with a stop-loss of ₹8,480 and a target price of ₹9,250. Stock remains in a strong uptrend and is clearly outperforming the broader market with a fresh all-time-high breakout above ₹8,600 zones. It has also broken out of the 8–10 session range with noticeable volumes, indicating strong participation. The bullish Marubozu reflects strong buying interest, while the broader pharma sector trend provides additional tailwinds for the up move.  TVS Motors  ‘Buy’ call for the stock at the current market price of ₹4,464 with a stop loss at ₹4,330 and a target price of ₹4,730. After a sharp up move, the stock consolidated in a tight range for the last 7–8 sessions and has now broken out with a strong bullish candle. RSI is also nearing a bullish crossover, while sustained trade above ₹4,480 can accelerate the next leg of the up move.   Dixon Technologies  ‘Buy’ call for Dixon at current market price of ₹14,990 with a stop loss at ₹14,550 and a target price of ₹15,850. The stock has retested its pole and flag breakout around the ₹14,400 zone and witnessed strong buying, surpassing the highs of the last three sessions. The 20 DEMA continues to act as strong support, while momentum indicators remain positively placed, supporting further upside.