Shares to buy or sell: Chandan Taparia recommends three stocks to buy today – March 18

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Tuesday, following strong global market cues. The trends on Gift Nifty also signal a positive start for the domestic equity market.

On Monday, the Indian equity market ended higher, with the Nifty 50 surpassing the 22,500 level.

The Sensex surged 341.04 points, or 0.46%, to close at 74,169.95, while the Nifty 50 closed 111.55 points, or 0.5%, higher at 22,508.75.

On the options front, Chandan Taparia, Head – Derivatives and Technicals, Wealth Management, MOFSL, said that the Maximum Call OI (Open Interest) is at 23,000 then 22,800 strike while Maximum Put OI is at 22,000 then 22,500 strike.

“Call writing is seen at 22,800 then 22,700 strike while Put writing is seen at 22,500 then 22,300 strike. Option data suggest a broader trading range in between 22,000 to 23,000 zones while an immediate range between 22,300 to 22,700 levels,” Taparia said.

Nifty 50 Outlook

Nifty 50 index saw bulls taking control right from the first tick, driving the index up by around 200 points in the initial hour of the session, reaching a high of 22,577 on March 17.

“However, post this the momentum faded out as the Nifty 50 index remained range bound within 90-100 points, consolidating within the opening hour’s candle. It formed a bullish candle on the daily chart and closed with gains of 111 points near 22,500. Now it has to hold above 22,400 zones for an up move towards 22,650 then 22,800 zones while support can be seen at 22,330 then 22,222 zones,” Taparia said.

Bank Nifty Outlook

Bank Nifty Index gradually extended the positive momentum towards 48,481 marks in the first half of the session on Monday.

“Later on, Bank Nifty remained consolidative in a narrow range of 150 points in between 48,250 to 48,400 levels and closed with gains of around 300 points near 48,350 levels. It formed a small bullish candle on daily scale as buying is visible at lower levels but momentum is missing at higher zones. Now, it has to hold above 48,250 zones for a bounce towards 48,500 then 48,750 levels, while on the downside support is seen at 48,250 and then 48,000 zones,” Taparia said.

Chandan Taparia has recommended three stocks to buy today, March 17. Taparia recommends buying Varun Beverages, InterGlobe Aviation (IndiGo) and Voltas.

Stocks to buy

Varun Beverages | Buy | Target Price: ₹540 | Stop Loss: ₹490

Varun Beverages share price has given a range breakout on the daily chart with a large bodied bullish candlestick and closed above its 20 DEMA. The RSI indicator has turned up which confirms the upward momentum, said Chandan Taparia.

He recommends buying Varun Beverages shares for a target price of ₹540, and a stop loss at ₹490.

IndiGo | Buy | Target Price: ₹5,020 | Stop Loss: ₹4,660

IndiGo share price is retesting its breakout from a symmetrical triangle on the daily chart with higher than average traded volumes. The ADX line has turned up which confirms the strength of the bullish trend, said the MOFSL analyst.

He suggests buying IndiGo shares for a target price of ₹5,020, and keeping a stop loss at ₹4,660 level.

Voltas | Buy | Target Price: ₹1,550 | Stop Loss: ₹1,415

Voltas stock price broke out of a rounding bottom pattern on the daily chart and crossed above its 50 DEMA which confirms the trend reversal upwards. The MACD indicator is rising which confirms the upward momentum, Taparia said.

He recommends buying Voltas shares for a target price of ₹1,550, maintaining a stop loss at ₹1,415 level.

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.