Shares to buy or sell: Chandan Taparia recommends three stocks to buy today —December 17

Shares to buy or sell: The domestic stock market indices closed in the red on Monday, December 16, as the IT and Banking stocks dragged the benchmark indices into losses. The Nifty 50 index closed 0.4 per cent lower at 24,668.25 points, compared to 24,768.30 points at the previous market close.

The BSE Sensex index closed 0.47 per cent lower at 81,748.57 points, compared to 82,133.12 points at the previous market close. 

“Nifty Index opened positive but failed to cross its previous day’s high and gradually slipped in the first half of the session. It showed some swings in the next half and finally settled near 24,600 zones. Index has been witnessing a tug-of -war between the bulls and bears from the last three trading sessions with support-based buying but lack a follow-up action. It formed a small-bodied candle on the daily frame with a longer lower shadow but has been making lower highs from the last three sessions. Now, it has to hold above 24,500 zones for an up move towards 24,700 then 24,850 zones whereas supports can be seen at 24,500 and 24,400 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Wealth Management, MOFSL.

On options front, Maximum Call OI is at 25,000 then 24,700 strike while Maximum Put OI is at 24,000 then 23,500 strike. Call writing is seen at 24,600 then 24,700 strike, while Put writing is seen at 24,300 then 24,600 strike. Option data suggests a broader trading range between 24,200 to 25,000 zones while an immediate range between 24,400 to 24,800 levels. 

Bank Nifty

On the Bank Nifty outlook, Taparia further added, “Bank Nifty Index opened on a positive note and gained further in the opening trade and tested 53,600 zones. However it failed to sustain at higher levels and dipped towards 53,300 zone during mid-day, while a sharp recovery in last hour of trade helped the index to close with gains of around 170 points. It formed a small bodied candle on the daily scale and is trading within the range of its 5th Dec’24 candle. Now, it has to hold above 53,300 zones for an up move towards 54,000 and then the previous lifetime high of 54,467 levels, while on the downside support shifts higher to 53,300 then 53,000 levels.”

Chandan Taparia has recommended three stocks to buy today. These stocks are Cummins India Ltd., DLF Ltd., and Coromandel International Ltd. 

Stocks to buy today 

1. Cummins India Ltd. (CUMMINSIND): Buy at ₹3,671; Target at ₹3,860; Stop Loss at ₹3,580. 

The stock has given a range breakout with a large-bodied candle on the daily scale. It has also crossed above its key moving averages, which suggest a bullish trend. The RSI Indicator is headed up which confirms the upward momentum.

2. DLF Ltd. (DLF): Buy at ₹893; Target at ₹940; Stop Loss at ₹871. 

The price is on the verge of breaking out of a consolidation zone, with higher-than average buying volumes visible. It has been making higher-highs and higher-lows for the past 4 weeks, suggesting bullish sentiment. The ADX line has turned up suggesting strength in the current uptrend.

3. Coromandel International Ltd. (COROMANDEL): Buy at ₹1,819; Target at ₹1,900; Stop Loss at ₹1,780. 

The stock has broken out of a narrow range pattern on the daily chart with a surge in volumes. It is perfectly at its 100 DEMA with slight dips being bought into. The MACD is on the verge of giving a bullish crossover, which could support the upward momentum. 

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.