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

Indian stock market: Benchmark equity indices Sensex and Nifty reached new all-time highs on Thursday, following positive global trends after the U.S. Federal Reserve announced its first policy rate cut in over four years.

The 30-share BSE Sensex increased by 236.57 points, or 0.29%, closing at a record high of 83,184.80. During the trading session, it surged by as much as 825.38 points, or 0.99%, to achieve an intra-day peak of 83,773.61 before retracting some gains by the end of the day.

Similarly, the NSE Nifty rose by 38.25 points, or 0.15%, to finish at 25,415.80. At its highest point during the day, it jumped 234.4 points, or 0.92%, reaching a fresh intra-day record of 25,611.95.

“Domestic equities cheered the 50bps rate cut by the US Fed with Nifty making fresh high above 25,600 zones. The index witnessed profit booking at a higher zone, but managed to close with gains of 38 points at 25,416. Broader market bore the brunt of the profit booking with the Nifty midcap 100 down 0.7% and the Nifty smallcap 100 down 1.3%%. Sector-wise it was a mixed bag with buying seen in FMCG, Banking, Financials & Auto. Globally, investors welcome the US rate cut as this raises the expectation of other central banks to follow suit. On the domestic front, strong FIIs buying ( ₹17600cr month till date) and advance tax collection surging by 22.6% to ₹4.36cr lakh crore in H1FY25 too boosted the sentiments. While the US Fed policy is out, investors will look for the other three central banks' outcome namely BOJ, BOE, and China. Overall we expect the market to stay in a range with positive bias,” said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Chandan Taparia, Head – Equity Derivatives and Technicals, Wealth Management, MOFSL, has recommended three stocks to buy today, September 20. According to him, these stocks – Kotak Bank, Jubilant Food, and ICICI Lombard– are technically placed to see a decent upmove.

Stocks to buy

Kotak Bank: Buy at ₹1,871 | Target Price: ₹1,940 | Stop Loss: ₹1,837

Price has broken out of a consolidation zone with higher-than-average buying volumes, which could support the up move. The MACD indicator has given a bullish crossover and is headed up, which confirms the upward momentum.

Jubilant Food: Buy at ₹695 | Target Price: ₹740 | Stop Loss: ₹695

Stock is in a strong uptrend making higher highs with noticeable buying volumes to support the uptrend. The ROC momentum indicator has turned up which confirms the up move.

ICICI Lombard: Buy at ₹2200 | Target Price: ₹2360 | Stop Loss: ₹2120

Price has bounced back up from its support levels with high buying volumes to confirm the bull run. The RSI indicator is on the verge of giving a bullish crossover, which could confirm the bullish momentum.

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.