Shares to buy or sell: The Indian domestic stock market indices closed in the green as the sentiments from the Mahayuti alliance win in the Maharashtra state elections fueled the market on Monday. The Nifty 50 index closed 1.32 per cent higher at 24,221.90 points on Monday, compared to 23,907.25 points at the previous market close.
The BSE Sensex closed 1.25 per cent higher at 80,109.85 points, compared to 79,117.11 points in the previous market session.
“Nifty Index opened gap up by almost 350 points and moved to 24,350 zones after which it witnessed some cool off from its highs. It managed to close near its opening levels with gains of around 310 points. It formed a small bodied candle on daily frame and has started making higher highs - higher lows from the last two sessions. Now it has to hold above 24,150 zones for an up move towards 24,350 then 24,500 zones, whereas supports are placed at 24,150 and 24,000 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Wealth Management, MOFSL.
On option front, Maximum Call OI is at 25,000 then 24,500 strike while Maximum Put OI is at 23,500 then 24,000 strike. Call writing is seen at 24,300 then 25,000 strike while Put writing is seen at 24,300 then 24,200 strike. Option data suggests a broader trading range in between 23,700 to 24,700 zones while an immediate range between 24,000 to 24,500 levels.
On the Bank Nifty outlook, Taparia further added, “Bank Nifty Index opened gap up by more than 900 points and extended the momentum towards 52,300 zones in the first half of the session. Later it remained consolidative near 52,000 zones and ended with decent gains of around 1,070 points near 52,200 levels. It formed a small bullish candle on daily scale as good buying interest was seen with follow up of the previous session. Now it has to hold above 52,000 zones for an up move towards 52,750 then 53,000 levels while support is seen at 51,750 then 51,500 zones.”
Chandan Taparia has recommended three stocks to buy today. These stocks are Persistent Systems Ltd, Laurus Labs Ltd, and Ashok Leyland Ltd.
1. Persistent Systems Ltd. (PERSISTENT): Buy at ₹5,917 | Target Price: ₹6,280 | Stop Loss: ₹5,755.
Stock has given a range breakout near life highs suggesting a continuation of the uptrend. Buying was visible across the IT space which may support the up move. The momentum indicator RSI is positively placed which has bullish implications.
2. Laurus Labs Ltd. (LAURUSLABS): Buy at ₹532 | Target Price: ₹560 | Stop Loss: ₹517.
Stock has broken out of a consolidation zone with a large bodied bullish candle and a surge in volumes visible on the daily chart. It is Perfectly respecting its 200 DEMA. The MACD indicator has given a bullish crossover which confirms the upward momentum.
3. Ashok Leyland Ltd. (ASHOKLEY): Buy at ₹234 | Target Price: ₹245 | Stop Loss: ₹230.
Price has broken out of an inverted Head and Shoulder pattern with a bullish Marubozu candle which suggests the trend reversal has strength to support it. The RSI indicator is headed up which confirms the price movement.
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.
