In today’s market analysis, Chandan Taparia, Head of Equity Derivatives and Technicals at Motilal Oswal Financial Services Ltd (MOFSL), has identified three stocks that investors should consider buying. As the Indian stock market shows signs of recovery, these recommendations come at a crucial time for traders looking for potential gains.
Current Market Overview
The Indian benchmark indices, Nifty 50 and BSE Sensex, ended Monday’s trading session in positive territory. The Nifty 50 closed up by 0.65%, finishing at 24,339 points, while the Sensex gained 0.6%, closing above 80,000 at 80,005 points. During intraday trading, the Nifty nearly reached the 24,500 mark, missing it by just 8 points.Taparia noted that the Nifty index opened positively and experienced consistent buying throughout the session. However, some cool-off occurred in the latter half of the day. He mentioned that as long as the Nifty holds below the 24,450 zone, there could be potential weakness towards 24,150 and then 24,000 levels, with hurdles at 24,450 and 24,600.
Recommended Stocks to Buy
1. HCL Technologies Ltd (HCL Tech)
- Buy Price: ₹1,871
- Target Price: ₹1,960
- Stop Loss: ₹1,830
Company Overview: HCL Technologies is a leading global IT services company based in India. With a strong presence in software development and IT consulting, HCL Tech serves clients across various sectors including healthcare, financial services, and manufacturing.Market Position: The company has consistently shown robust growth and innovation in its service offerings. HCL Tech is known for its strong client relationships and has been expanding its footprint in emerging technologies such as AI and cloud computing.Recent Developments: The stock is on the verge of a breakout from a consolidation zone near its all-time high levels. High buying volumes are visible on the daily chart, and the MACD indicator is about to give a bullish crossover, confirming upward momentum.
2. Lupin Ltd
- Buy Price: ₹2,204
- Target Price: ₹2,350
- Stop Loss: ₹2,135
Company Overview: Lupin is a multinational pharmaceutical company headquartered in Mumbai. It is one of India’s largest generic drug manufacturers and has a significant presence in over 100 countries.Market Position: Lupin is recognized for its extensive portfolio of medications across various therapeutic areas including cardiovascular health, diabetes management, and anti-infectives. The company’s commitment to research and development has positioned it as a leader in the pharmaceutical sector.Recent Developments: The stock has bounced back from major support levels with a large-bodied bullish candle indicating strength. Buying was visible across the pharma space recently, which may support an uptrend. The momentum indicator RSI has also turned up to support this upward movement.
3. Balrampur Chini Mills Ltd
- Buy Price: ₹628
- Target Price: ₹670
- Stop Loss: ₹605
Company Overview: Balrampur Chini Mills is one of India’s largest sugar manufacturing companies. The company operates several sugar mills across Uttar Pradesh and is involved in producing sugar and ethanol.Market Position: With a strong operational framework and extensive distribution network, Balrampur Chini Mills has established itself as a key player in the sugar industry. The company also focuses on sustainable practices by producing renewable energy from bagasse.Recent Developments: The stock has shown a range breakout on the daily chart with strong bullish momentum and noticeable volumes. It has taken support at its 50 DEMA (Daily Exponential Moving Average) and bounced back significantly. The Stochastic indicator has exited its oversold zone, confirming bullish momentum.
Market Sentiment and Future Outlook
Taparia highlights that the Bank Nifty index opened positively following ICICI Bank’s results but later consolidated within a narrow range of 250 points between 51,250 to 51,500 zones. He noted that until it holds below the 51,500 zone, weakness could be seen towards 51,000, with hurdles at 51,500 and then at 51,750 levels.
Conclusion
Investors looking to capitalize on current market conditions may find opportunities in these recommended stocks from Chandan Taparia. With solid fundamentals and growth potential in HCL Technologies Ltd., Lupin Ltd., and Balrampur Chini Mills Ltd., these stocks are poised for potential gains. However, it remains crucial to adhere to suggested stop-loss levels to manage risk effectively.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies and do not represent the views of Mint. We strongly advise investors to consult with certified experts before making any investment decisions.
