Shares to buy or sell: Chandan Taparia recommends three stocks to buy today - March 25

The Indian stock market is expected to open higher on Tuesday led by positive global market cues. The Sensex and Nifty 50 are likely to extend gain after witnessing a sharp rally for the six consecutive sessions. The trends on Gift Nifty also indicates a start in green for the Indian stock market indices.

On Monday, the Indian stock market benchmark indices jumped more than one percent each, extending the rally for the sixth consecutive session.

The Sensex surged 1,078.87 points, or 1.40%, to close at 77,984.38, while the Nifty 50 settled 307.95 points, or 1.32%, higher at 23,658.35.

On the option front, Chandan Taparia, Head – Derivatives and Technicals, Wealth Management, MOFSL, said that the Maximum Call OI (Open Interest) is at 24,000 then 24,500 strike while Maximum Put OI is at 23,000 then 23,500 strike.

“Call writing is seen at 24,200 then 24,400 strike while Put writing is seen at 23,500 then 23,600 strike. Option data suggests a broader trading range in between 23,000 to 24,000 zones while an immediate range between 23,400 to 23,800 levels,” Taparia said.

Nifty 50 Outlook

Nifty 50 index inched up slowly and steadily on March 24, with sustained buying observed throughout the day, as every small decline was being bought into.

“Nifty 50 made a high of 23,708 and closed with gains of over 300 points near 23,650 zone. Interestingly, the index has been following a similar pattern over the last 4-5 sessions — opening with a gap-up, experiencing a small dip and then witnessing buying throughout the day and this indicates the dominance and strength of the bulls in the market. It formed a bullish candle on the daily chart and trading well above its all short term moving averages,” Taparia said.

Now, according to Taparia, Nifty 50 has to hold above 23,500 zones for an up move towards 23,800 then 24,000 zones while supports are shifting higher at 23,500 then 23,333 zones.

Bank Nifty Outlook

Bank Nifty index remained consolidative in a range with positive bias and closed with gains of over 2% on Monday.

“Bank Nifty formed a bullish candle on the daily scale and continued the higher low formation of the past eight sessions. Now, it has to hold above 51,500 zones for an up move towards 52,000 then 52,250 levels, while on the downside support is seen at 51,500 then 51,250 zones,” Taparia said.

Chandan Taparia has recommended three stocks to buy today, March 17. Taparia recommends buying Chambal Fertilisers & Chemicals, L&T Finance and Housing & Urban Development Corporation (HUDCO).

Stocks to buy

Chambal Fertilisers & Chemicals | Buy | Target Price: ₹670 | Stop Loss: ₹595

Chambal Fertilisers share price has broken out from a consolidation zone on the daily with higher than average volumes visible. The ADX line is rising which confirms the strength of the uptrend, Taparia said.

He recommends buying Chambal Fertilisers shares for a target price of ₹670, while maintaining a stop loss of ₹595.

L&T Finance | Buy | Target Price: ₹170 | Stop Loss: ₹154

L&T Finance share price broke out from a rectangle pattern with a large bodied bullish candle and crossed above its 200 DEMA suggesting a trend reversal. The MACD indicator is rising which confirms the positive momentum, Taparia added.

He recommends buying L&T Finance shares for a target price of ₹170, with a stop loss of ₹154.

HUDCO | Buy | Target Price: ₹224 | Stop Loss: ₹202

HUDCO stock price has breached above its neckline of a head and shoulder pattern and made higher highs confirming the uptrend. The RSI momentum indicator is positively placed which has bullish implications, he added.

Taparia recommends buying HUDCO shares for a target price of ₹224, while maintaining the stop loss at ₹202.

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.