Shares to buy or sell: Chandan Taparia recommends three stocks to buy today

Indian stock market: Market indices benchmark Nifty 50 extended its rally for the 13th straight session, reaching a new record high on Monday, September 2, despite unfavourable global trends.

The Nifty 50 and the Sensex reached new all-time highs during the session, with the Nifty 50 at 25,333.65 and the Sensex at 82,725.28. The Sensex ended the day 194 points higher, or up 0.24%, closing at 82,559.84.

“Nifty Index opened the gap at a new lifetime high of 25333, which slipped in the first half of the session but respected 25235 marks. Nifty has created a history by continuing its winning streak of the last thirteen sessions. It recovered slightly in the second half of the day to finally close in gains of around 40 points. It formed a small-bodied Bearish candle on the daily frame with a longer lower shadow, indicating absorption at dips. It gave the highest-ever close and has been making higher highs from the last six sessions. Now it has to continue to hold above 25200 zones for an up move towards 25400 then 25500 levels while support is seen at 25100 then 25000 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Wealth Management, MOFSL.

India VIX was up by 5.17% from 13.39 to 14.06 levels. Volatility slightly inched higher to create momentum but is comparatively still at lower zones and paving way for the bulls.

On option front, Maximum Call OI is at 26000 then 25300 strike while Maximum Put OI is at 25000 then 24000 strike. Call writing is seen at 25300 then 25700 strike while Put writing is seen at 24500 strike. Option data suggests a broader trading range in between 24900 to 25800 zones while an immediate range between 25000 to 25600 levels.

Bank Nifty

On the Bank Nifty outlook, Taparia further added, “Bank Nifty Index opened on a positive note with gains of around 200 points but remained consolidative in narrow range of 200 points for most part of the session. It formed a small bearish candle on daily scale as it failed to surpass its opening high but buying is visible at lower zones. Now it has to continue to hold above 51250 zones for an up move towards 51750 then 52000 levels while on the downside support is seen at 51250 then 51000 zones.”

Chandan Taparia has recommended three stocks to buy today, September3. According to him, these stocks – Hero Motocorp, ITC and Cholamandalam Investment and Fin Co– are technically placed to see a decent upmove.

Stocks to buy

Hero Motocorp: Buy at ₹5578 | Target Price: ₹5920 | Stop Loss: ₹5405

It has formed a descending triangle with a breakout on the upside which suggests we could see a bullish move. The MACD indicator has given a bullish crossover and turned up indicating the up move has the momentum to support it.

ITC: Buy at ₹510 | Target Price: ₹533 | Stop Loss: ₹498

Stock has formed an ascending triangle which suggests we could see a breakout on the upside. The ROC indicator has turned up which could confirm the potential upward momentum.

Cholamandalam Investment and Fin Co: Buy at ₹1486 | Target Price: ₹1580 | Stop Loss: ₹1440

Price has broken out of a consolidation zone on the daily time frame near its all-time highs which suggests we could see a bullish move to the upside. Stock has also closed above the upper Bollinger Bands indicator which confirms the uptrend.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.