Shares to buy or sell: Chandan Taparia recommends three stocks to buy today — December 10

Shares to buy or sell: ⁠⁠⁠⁠⁠⁠⁠The Indian domestic stock market indices struggled to gain traction on Monday, December 9. The index heavyweights from the FMCG sector dragged the benchmark indices lower for the second successive session. The Nifty 50 index closed 0.24 per cent lower at 24,619 points, compared to 24,677.80 points at the previous market close.

The BSE Sensex index closed 0.25 per cent lower at 81,508.46 points on Monday, compared to its previous level of 81,709.12 points a day before. 

“Nifty Index opened on a negative note and showed volatility within a 100 point range during the first half of the session. In the latter part of the day, the index moved sideways showing limited momentum and a lack of clear direction. It formed a small-bodied candle on daily timeframe and closed with losses of around 60 points. Now, it has to hold above 24,500 zone for an up move towards 24,700 then 24,850 zone, whereas supports can be seen at 24,500 and 24,400 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Wealth Management, MOFSL.

On option front, Maximum Call OI is at 25,000 then 24,700 strike while Maximum Put OI is at 24,000 then 24,200 strike. Call writing is seen at 24,700 then 25,000 strike while Put writing is seen at 24,600 then 24,000 strike. Option data suggests a broader trading range in between 24,100 to 25,000 zones, while an immediate range is between 24,300 to 24,800 levels.

Bank Nifty

On the Bank Nifty outlook, Taparia further added, “Bank Nifty Index opened on a flattish note and saw buying interest during the first half of the session pushing it to a high of 53,775 zones. Later some cool off was seen in the second half of the session from higher zones and the Index ended with minor losses near 53,400 zones. It formed an triple inside bar on daily scale as the Index got stuck in range of 600 points since last couple of sessions. Now it has to hold above 53,250 zones for an up move towards 54,000 then previous life time high of 54,467 marks while on the downside support shifts higher to 53,250 then 53,000 levels.”

Chandan Taparia has recommended three stocks to buy today. These stocks are Dr. Lal PathLabs Ltd, HDFC Asset Management Company Ltd, and Steel Authority of India Ltd. 

Stocks to buy today 
 

1. Dr. Lal PathLabs Ltd. (LALPATHLAB): Buy at ₹3,136 | Target Price at ₹3,370 | Stop Loss at ₹3,025. 

The stock has bounced back up from its 200 DEMA and is headed up, with higher-than-average buying volumes. The RSI momentum indicator is positively placed, which could support the upward momentum. 

2. HDFC Asset Management Company Ltd. (HDFCAMC): Buy at ₹4,469 | Target Price at ₹4,750 | Stop Loss at ₹4,330. 

The price has broken out of an inside bar pattern on the daily chart with a large-bodied bullish candle on the daily chart. The ROC indicator is headed up, which confirms the upward momentum. 

3. Steel Authority of India Ltd. (SAIL): Buy at ₹126 | Target Price at ₹135 | Stop Loss at ₹122. 

A double-bottom pattern has appeared on the daily time frame with an upward breakout, which suggests bulls are in control. The MACD indicator has given a bullish crossover and headed up, which confirms the upward 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.