Shares to buy or sell: Chandan Taparia recommends three stocks to buy and sell today | Stock Market News

The Indian stock market witnessed sharp losses on Monday, with both the benchmark indices, Sensex and Nifty 50, plunging over a percent each, amid broad-based selling on weak global cues.

The Sensex crashed 824.29 points, or 1.08%, to close at 75,366.17, while the Nifty 50 settled 263.05 points, or 1.14%, lower at 22,829.15. All the sectoral indices ended with deep cuts. Broader markets, Nifty Midcap 100 and the Nifty Smallcap 100, also plummeted 2-3% each.

On option front, Chandan Taparia, Head – Derivatives and Technicals, Wealth Management, MOFSL, noted that the maximum Call OI (Open Interest) is at 24,000 then 23,000 strike while Maximum Put OI is at 22,500 then 22,800 strike.

“Call writing is seen at 23,000 then 23,100 strike while Put writing is seen at 22,400 then 22,900 strike. Option data suggests a broader trading range in between 22,300 to 23,300 zones while an immediate range between 22,600 to 23,100 levels,” Taparia said.

Nifty 50 Outlook

Nifty 50 index opened gap down by 150 points and sank lower throughout the day to breach an important support level to touch intraday low of 22,786 marks. It witnessed a tad bit recovery in the last hour but closed with losses of around 260 points.

Nifty 50 formed a bearish candle on the daily frame and has been making lower lows from the last two sessions. Now till it holds below 22,950 zones, weakness could be seen towards 22,650 then 22,500 zones whereas hurdles are placed at 22,950 then 23,050 zones, Taparia said.

Bank Nifty Outlook

Bank Nifty index failed to hold 48,250 levels and ended in losses below 48,100 zones on Monday. Bank Nifty formed a small bodied candle on the daily scale with a long upper shadow as selling pressure was seen at higher zones. Now till it holds below 48,250 zones weakness could be seen towards 47,750 then 47,500 levels while on the upside hurdle is seen at 48,250 then 48,500 zones, Taparia added.

Chandan Taparia has recommended one stock to buy today, January 28, and two stocks to sell. Taparia recommends buying Britannia Industries shares today. On the other hand, he recommends selling Info Edge (India) and Glenmark Pharmaceuticals stock futures.

Stocks to buy or sell

Britannia Industries | Buy | Target Price: ₹5,520 | Stop Loss: ₹5,025

Britannia Industries share price has broken out of a consolidation zone on the daily chart and crossed above its 50 DEMA suggesting bullish sentiment. It is holding gains despite broader market weakness. The RSI indicator is rising, confirming the bullish momentum, Taparia said.

Info Edge | Sell | Target Price: ₹6,550 | Stop Loss: ₹7,250

Info Edge India share price has broken down from an inverted pole and flag pattern with a large bodied bearish candle on the daily chart. The ADX Line is rising suggesting the strength of the bearish trend, Taparia said.

He recommends selling Info Edge 30th January Futures for a target price of ₹6,550 and keeping a stop loss at ₹7,250.

Glenmark Pharmaceuticals | Sell | Target Price: ₹1,300 | Stop Loss: ₹1,445

Glenmark Pharmaceuticals stock has broken down below the 200 DEMA support zone and has strong bearish implications. Selling was visible across the pharma space which has bearish implications. The MACD indicator is declining, confirming the bearish sentiment, he said.

He recommends selling Glenmark Pharmaceuticals 30th January Futures for a target price of ₹1,300, with a stop loss at ₹1,445.

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.