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

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, traded with strong gains of over 1% each on Tuesday after enduring its longest consecutive losing spell since February 2023.

The BSE Sensex rallied over 800 points, or 1%, to trade around 78,100 level, while the NSE Nifty 50 gained over 240 points, or 1%, to around 23,700 level. The rally was led by across the board gains with all the sectoral indices trading in the green.

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

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

Nifty 50 Outlook

Nifty 50 formed a doji candle on a daily frame and has been making lower lows from the last six sessions. The index is hovering near its 200 DEMA. On a weekly scale, it formed a big bearish candle and gave an inside bar breakdown. Now till Nifty 50 holds below 23,650 zones, weakness could be seen towards 23,350 then 23,200 zones while hurdles are placed at 23,750 and 23,900 zones, Taparia said.

Bank Nifty Outlook

Bank Nifty index also jumped 1% on November 19 and traded above the 50,800 level.

“Bank Nifty formed an Inside Bar on daily scale while Big Bearish candle on weekly scale as selling pressure was seen at higher zones and gave lowest weekly close after fourteen weeks. Now till it holds below 50,500 zones weakness could be seen towards 49,650 then 49,500 levels while on the upside hurdle is seen at 50,500 then 50,750 levels,” said Taparia.

Chandan Taparia has recommended two stocks to buy today, November 19, and one stock to sell. According to him, these stocks – Coromandel International and Federal Bank – are technically placed to see a decent upmove. On the other hand, he recommended selling Bharat Petroleum Corporation Ltd (BPCL) stock futures.

Stocks to buy or sell

Coromandel International | Buy | Target Price: ₹1,825 | Stop Loss: ₹1,675

Coromandel International share price has bounced back from its major support levels and negated lower highs and lower lows on daily scale. The stock is holding gains in spite of broader market weakness. The MACD Indicator has given a bullish crossover and headed up which confirms the move, Taparia said.

He has a ‘Buy’ call on Coromandel International shares with a target price of ₹1,825 and a stop loss at ₹1,675 level.

Federal Bank | Buy | Target Price: ₹212 | Stop Loss: ₹195

Federal Bank stock price is retesting its breakout from a triple bottom pattern and has formed a bullish engulfing candle on the daily chart. Buying was visible across selective banking space which may support the up move. The momentum indicator RSI is positively placed which confirms the bullish sentiment, said the MOFSL analyst.

He suggests buying Federal Bank shares for a target of ₹212, keeping stop loss at ₹195.

BPCL | Sell | Target Price: ₹265 | Stop Loss: ₹300

BPCL share price has broken down from major support levels with a large bodied bearish candle on the daily chart. It has also crossed below its 50 WEMA. The ADX line is headed up which suggests the bearish trend has strength, Taparia said.

He recommends selling BPCL 28th November Futures for a target price of ₹265 and stop loss of ₹300.

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.