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

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Tuesday, amid mixed global cues. The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index.

The domestic equity market crashed on Monday and the benchmark Nifty 50 slipped below 23,100 level. The Sensex cracked 1,048.90 points, or 1.36%, to close at 76,330.01, while the Nifty 50 settled 345.55 points, or 1.47%, lower at 23,085.95.

In the derivatives market, Chandan Taparia, Head – Equity Derivatives and Technicals, Wealth Management, MOFSL, noted that the maximum call open interest (OI) is at 24,000 then 23,500 strike while Maximum Put OI is at 22,000 then 23,000 strike.

“Call writing is seen at 23,300 then 23,200 strike while Put writing is seen at 23,000 then 23,100 strike. Option data suggest a broader trading range in between 22,500 to 23,500 zones while an immediate range between 22,900 to 23,300 levels,” Taparia said.

Nifty 50 Outlook

Bears were in full control and the Nifty 50 index closed with losses of around 340 points. It formed a bearish candle on a daily frame and has been making lower highs from the last seven sessions. Now till it holds below 23,200 zones, weakness could continue towards 22,800 then 22,650 zones while hurdles are placed at 23,200 then 23,350 zones, Taparia said.

Bank Nifty Outlook

Bank Nifty plunged 692.90 points, or 1.42%, to close at 48,041.25 on Monday.

Bank Nifty index formed a Bearish candle on the daily scale and formed lower highs from the last seven sessions as it closed with losses of around 700 points. Now till it holds below 48,500 zones weakness could be seen towards 47,500 then 47,250 levels while on the upside hurdle is seen at 48,250 then 48,500 zones, Taparia added.

Chandan Taparia has recommended one stock to buy today, January 14, and two stocks to sell today. The stocks to trade are Marico, Mphasis and Aditya Birla Fashion and Retail.

Stocks to buy or sell

Marico | Buy | Target Price: ₹705 | Stop Loss: ₹650

Marico stock price has broken out from a consolidation zone on the daily chart move. It is holding gains despite broader market weakness. The ADX Line is rising which suggests the uptrend has strength to support it, Taparia said.

Mphasis | Sell | Target Price: ₹2,700 | Stop Loss: ₹2,850

Mphasis share price has breached below its rising trend line support zone with a surge in selling volumes visible on the daily chart. The MACD line in a down trend is confirming the bearish momentum.

The MOFSL analyst recommends selling Mphasis 30th January Futures for a target price of ₹2,700 with a stop loss at ₹2,850.

Aditya Birla Fashion and Retail | Sell | Target Price: ₹245 | Stop Loss: ₹270

Aditya Birla Fashion and Retail stock price has broken down below key support levels on the daily chart with a large bodied bullish candle suggesting bearish sentiment. The RSI indicator is declining which confirms the downward momentum, according to Taparia.

He recommends selling Aditya Birla Fashion and Retail 30th January Futures for a target price of ₹245, with a stop loss at ₹270.

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.