Shares to buy or sell: Chandan Taparia recommends three stocks to buy today – May 6
The Indian stock market indices, Sensex and Nifty 50, may witness a flat opening on Tuesday, following mixed cues from the global peers. The trends on Gift Nifty also indicate a muted start for the Indian stock market today.
In Monday’s trading session, the domestic equity market extended gains to close higher, with the benchmark Nifty 50 index settling above 24,400 level.
The Sensex rallied 294.85 points, or 0.37%, to close at 80,796.84, while the Nifty 50 ended 114.45 points, or 0.47%, higher at 24,461.15.
On option front, Chandan Taparia, Head – Derivatives and Technicals, Wealth Management, MOFSL noted that the maximum Call OI (Open Interest) is at 24,500 then 25,000 strike while maximum Put OI is at 24,000 then 24,400 strike.
“Call writing is seen at 24,500 then 24,700 strike while Put writing is seen at 24,400 then 24,500 strike. Option data suggests a broader trading range in between 24,000 to 25,000 zones while an immediate range between 24,300 to 24,700 levels,” Taparia said.
Nifty 50 Outlook
Nifty 50 failed to hold above 24,500 levels but managed to hold 24,400 zones and traded in a range of 120 points throughout the day on May 5.
“Nifty 50 gave the recent highest daily close above 24,444 zones and formed a small bodied candle on daily frame while it has been making higher lows from the last two sessions. Now, it has to hold above 24,400 zones for an up move towards 24,650 then 24,750 zones while support levels can be seen at 24,200 then 24,050 zones,” Taparia said.
Bank Nifty Outlook
Bank Nifty index formed a small bodied candle on daily scale as momentum is missing at higher zones but multiple supports are intact at lower levels.
“This rate sensitive index has relatively underperformed the benchmark index as it has got stuck in a broader range on the daily scale. Now, Bank Nifty has to hold above 54,750 zones for an up move towards 55,250 then 55,500 zones while on the downside supports are seen at 54,750 then 54,500 levels,” added Taparia.
Chandan Taparia has recommended three stocks to buy today, April 29. Taparia recommends buying Hindustan Aeronautics (HAL), Dixon Technologies (India) and TVS Motor Company shares.
Stocks to buy
HAL | Buy | Target Price: ₹4,850 | Stop Loss: ₹4,470
HAL share price has broken out of a falling trendline on the daily chart and respecting its Higher tops – Higher bottom formation. It is respecting its 50 DEMA support zone with higher than average trade volumes on dips. The RSI indicator is positively placed which has bullish implications, Taparia said.
He recommends buying HAL shares for a target price of ₹4,850, while maintaining a stop loss of ₹4,470.
Dixon Technologies | Buy | Target Price: ₹17,770 | Stop Loss: ₹16,120
Dixon Technologies share price has formed a bullish pole and flag pattern on the daily chart with higher than average traded volumes visible. The ADX line is rising which confirms the strength of the uptrend, Taparia said.
He suggests buying Dixon Technologies shares for a target price of ₹17,770, and keeping a stop loss at ₹16,120 level.
TVS Motor Company | Buy | Target Price: ₹2,952 | Stop Loss: ₹2,700
TVS Motor share price has retested its breakout from a consolidation zone and headed up with higher than average traded volumes. The MACD line is rising which confirms the bullish sentiment, the MOFSL analyst said.
Taparia recommends buying TVS Motor Company shares for a target price of ₹2,952, and stop loss of ₹2,700.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
