Shares to buy or sell: Chandan Taparia recommends three stocks to buy today - April 22

The Indian stock market indices, Sensex and Nifty 50, are expected to see a muted opening on Tuesday, following a weakness in global markets. The trends on Gift Nifty also indicate a lower opening for the Indian stock market today.

On Monday, the domestic equity market extended the rally for the fifth consecutive session, with the benchmark indices jumping more than 1% each.

The Sensex jumped 855.30 points, or 1.09%, to close at 79,408.50, while the Nifty 50 settled 273.90 points, or 1.15%, higher at 24,125.55.

On the Nifty options front, Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL, said that the maximum Call OI (Open Interest) is at 24,200 then 24,500 strike while maximum Put OI is at 24,000 then 23,500 strike.

“Call writing is seen at 24,200 then 24,300 strike while Put writing is seen at 24,000 then 24,100 strike. Option data suggests a broader trading range in between 23,500 to 24,500 zones while an immediate range between 23,800 to 24,300 levels,” Taparia said.

Nifty 50 Outlook

Nifty 50 index has been making higher lows from the last seven trading sessions.

“Nifty 50 has formed a bullish candle on the daily frame and closed near its higher band signifying strength of the bulls from the last few sessions. Now, Nifty 50 has to hold above 24,000 zones for an up move towards 24,250 then 24,400 levels, while supports have shifted higher to 24,000 and then 23,850 levels,” said Taparia.

Bank Nifty Outlook

Bank Nifty index hit a new life high of 55,461 on Monday and remained consolidative at higher zones with overall buy on dips stance and formed a bullish candle on daily scale.

“Bank Nifty index has been forming higher lows from the last five sessions to close with decent gains of more than 1,000 points near 55,300 levels. Now it has to hold above 55,000 zones for an up move towards 55,750 then 56,000 zones while on the downside supports have shifted higher to 55,000 then 54,750 zones,” Taparia said.

Chandan Taparia has recommended three stocks to buy today, April 22. Taparia recommends buying UPL, Federal Bank and REC Ltd shares.

Stocks to buy

UPL | Buy | Target Price: ₹715 | Stop Loss: ₹650

UPL share price has given a range breakout on the daily chart with higher than average traded volumes. The MACD has given a bullish crossover which confirms the bullish momentum, Taparia said.

He recommends buying UPL shares for a target price of ₹715, suggesting a stop loss at ₹650.

Federal Bank | Buy | Target Price: ₹212 | Stop Loss: ₹197

Federal Bank share price has breached above a cup and handle pattern with a strong bodied bullish candle to support the up move. The RSI indicator is rising which confirms the positive momentum, according to the MOFSL analyst.

He recommends buying Federal Bank shares for a target price of ₹212, keeping a stop loss at ₹197.

REC | Buy | Target Price: ₹471 | Stop Loss: ₹426

REC share price has broken out of a falling trendline with a surge in buying volumes visible. The stock has closed above its 50 DEMA and the stochastic indicator is headed up which may support the bullish price movement.

Taparia recommends buying REC shares for a target of ₹471 and stop loss at ₹426.

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.