A brokerage house has recommended investing in three stocks. Strong bullish signals are emerging from technical patterns and support levels in Shriram Finance, Aurobindo Pharma, and Ashok Leyland, with targets set up to ₹1,280.
Stocks to Buy Today: Amidst increasing market volatility, a brokerage house has analyzed the trends of Nifty and Bank Nifty and recommended buying three selected stocks. On the day of monthly expiry, Nifty started well in early trading, but the market fluctuated throughout the day. Towards the end of the day, sudden selling pushed Nifty below its previous low.
According to the charts, Nifty continues to show weakness and has been trending downwards for four consecutive days. If Nifty remains below 26,000, it could fall to levels between 25,750 and 25,600. On the upside, resistance is observed at 26,000 and 26,100, which might cap any upward movement.
Option Data Signals
Option market data indicates that Nifty is currently trading within a confined range of 25,700 to 26,100. More call open interest is observed at 26,000 and 26,500 strikes, while put open interest is concentrated near 26,000 and 25,500. This implies that these levels are acting as barriers for both upward and downward movements. According to this data, Nifty's broader range is estimated to be between 25,400 and 26,300, with the primary trading range likely to remain between 25,700 and 26,100 for now.
Bank Nifty Analysis
Bank Nifty started b near 58,900 and fluctuated within a 400-point range throughout the day. The index moved between 58,750 and 59,150. The charts, with small candles and long wicks, suggest that buying emerges on dips, but upward momentum remains weak. The index is trading above its 10 DEMA, and if it sustains above 58,750, it could potentially move towards 59,000 to 59,350. On the downside, support levels are present near 58,650 and 58,500, which might halt any decline.
Brokerage Stock Recommendations
Chandan Taparia, Head–Derivatives and Technicals at Motilal Oswal Financial Services, has identified b bullish signals in three stocks.
Shriram Finance has a CMP (Current Market Price) of ₹838, with a target of ₹890 and a stop loss of ₹810. The stock is showing a bullish pennant pattern and maintaining good stability near its 20 DEMA, indicating potential for further upside.
Aurobindo Pharma has a CMP of ₹1,208, with a target of ₹1,280 and a stop loss of ₹1,175. This stock has bounced back after retesting its breakout level. It has formed a bullish engulfing pattern and a golden crossover. Additionally, the RSI is rising, which signals bullish momentum.
Ashok Leyland has a CMP of ₹145, with a target of ₹153 and a stop loss of ₹141. The stock is consistently taking support at its 20 DEMA and is in an uptrend. The ADX line is rising, indicating a b trend.
