As the Indian stock market grapples with recent volatility, Chandan Taparia, Head of Equity Derivatives and Technicals at Motilal Oswal Financial Services, has identified three key stocks for investors to consider buying today. With the Nifty 50 index closing below 24,000, these recommendations come at a critical time for traders looking for potential opportunities.
Current Market Overview
Market Performance
On November 4, 2024, the Indian stock market faced a significant sell-off:
- Nifty 50: Closed at 23,995.35, down 1.27% from the previous close of 24,304.35.
- BSE Sensex: Closed at 78,782.24, down 1.18% from 79,724.12.
The decline was broad-based, with sectors like Realty and Oil & Gas experiencing the most significant losses. The overall market sentiment remains cautious as investors react to various economic indicators and geopolitical developments.
Chandan Taparia’s Stock Recommendations
Despite the bearish market conditions, Chandan Taparia has pinpointed three stocks that show potential for growth:
1. State Bank of India (SBI)
- Buy Price: ₹829
- Target Price: ₹870
- Stop Loss: ₹807
SBI is currently retesting its breakout from a consolidation zone with strong buying volumes. The stock is supported by a bullish MACD crossover, indicating upward momentum despite broader market weakness.
2. Mahindra & Mahindra (M&M)
- Buy Price: ₹2,883
- Target Price: ₹3,050
- Stop Loss: ₹2,795
M&M has bounced back from major support levels and formed a large-bodied bullish candle on its daily chart. The stock has crossed above its key moving averages, suggesting a reversal in trend as the Stochastic indicator exits the oversold zone.
3. National Aluminium Co. (NALCO)
- Buy Price: ₹230
- Target Price: ₹245
- Stop Loss: ₹223
NALCO has formed a pennant pattern near its all-time high levels, indicating a continuation of its uptrend. The stock is respecting its 20-day exponential moving average (DEMA), with slight dips being bought into, supported by an upward trend in the Rate of Change indicator.
Market Sentiment and Strategy
Chandan Taparia advises traders to adopt a cautious approach given the current market dynamics. He highlights that while the Nifty index faces immediate support around the 23,800 mark, resistance levels are set at 24,200 and 24,350. Traders should focus on stocks that exhibit strong technical patterns and maintain a disciplined approach to stop-loss orders.
Conclusion
As the Indian stock market navigates through challenging conditions marked by volatility and uncertainty, Chandan Taparia’s recommendations provide targeted opportunities for investors looking to capitalize on breakout stocks. By focusing on fundamentally strong companies with positive technical indicators, traders can position themselves for potential gains despite broader market challenges.
Disclaimer: The views and recommendations provided in this article are those of individual analysts and do not reflect the views of Mint or any affiliated entities. Investors should verify information and consult with certified experts before making any investment decisions.
