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

Indian stock market indices, Sensex and Nifty 50, have been hitting record highs led by positive momentum in the global equities that gathered pace after the US Federal Reserve’s outsized interest rate cut last week.

On Thursday, the Sensex hit a fresh record high of 85,930.43 before closing 666.25 points, or 0.78%, higher at 85,836.12. The Nifty 50 touched a fresh peak of 26,250.90 but closed at 26,216.05, up 211.90 points, or 0.81%.

Nifty Outlook

“Nifty 50 index formed a bullish candle on the daily frame after a range breakout of the last three sessions with higher highs formation of the last six sessions. Now Nifty 50 has to hold above 26,150 zones for an up move towards 26,350 then 26,500 zones, whereas supports are placed at 26,100 then 26,000 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Wealth Management, MOFSL.

On option front, Taparia noted that maximum Call open interest (OI) is at 27,500 then 27,000 strike while Maximum Put OI is at 26,000 then 25,000 strike. Call writing is seen at 27,000 then 26,200 strike while Put writing is seen at 26,000 then 25,000 strike.

“Option data suggests a broader trading range in between 25,800 to 26,600 zones while an immediate range between 26,000 to 26,400 levels,” said Taparia.

Bank Nifty Outlook

Bank Nifty index also hit a new lifetime high of 54,467 mark on Thursday. It formed a Bullish candle on the daily scale and ended with gains of around 270 points near 54,400 zones.

“Bank Nifty gave a fresh range breakout on daily scale after consolidation of the last three sessions and the base of the Index is shifting higher. Now, it has to hold above 54,000 zones for an up move towards 54,750 then 55,000 zones while on the downside support shifts higher to 54,000 then 53,750 levels,” Taparia said.

Based on his technical analysis, Chandan Taparia has recommended three stocks to buy today, September 27. According to him, these stocks are technically well placed to see a decent upmove. The three stocks to buy are Persistent Systems, ITC and UltraTech Cement.

Here are top three stock recommendations for today by Chandan Taparia:

Persistent Systems | Buy | Stop Loss: ₹5,285 | Target Price: ₹5,720

Persistent Systems share price is trading near its all-time high price and is in a strong uptrend making higher highs-higher lows on the daily chart. The ROC indicator has turned up which confirms the bullish momentum, Taparia said.

ITC | Buy | Stop Loss: ₹510 | Target Price: ₹550

A range breakout is visible on the daily chart of ITC stock with the recent candle being a large bodied bullish candle. The MACD Indicator is on the verge of giving a bullish crossover which could support the upward momentum.

UltraTech Cement | Buy | Stop Loss: ₹11,753 | Target Price: ₹12,730

UltraTech Cement share price has broken out of a consolidation zone on the daily scale with higher-than-average buying volumes which could support the up move. The ADX line is rising and the positive DI is well above the negative DI which suggests the bullish trend has strength, Taparia said.

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.