Shares to buy or sell: Chandan Taparia recommends three stocks to buy and sell today - April 2

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open flat on Wednesday amid mixed global cues. The trends on Gift Nifty also indicate a muted opening. On Tuesday, the Indian stock market ended sharply lower, with both the benchmark indices plunging more than 1.

5% each. The Sensex cracked 1,390.41 points, or 1.



80%, to close at 76,024.51, while the Nifty 50 settled 353.65 points, or 1.

50%, lower at 23,165.70. On option front, Chandan Taparia, Head – Derivatives and Technicals, Wealth Management, MOFSL, said that Maximum Call OI is at 23,500 then 24,000 strike while Maximum Put OI is at 23,000 then 22,800 strike.

“Call writing is seen at 23,500 then 23,300 strike while Put writing is seen at 23,200 then 22,800 strike. Option data suggests a broader trading range in between 22,600 to 23,700 zones while an immediate range between 23,000 to 23,400 levels,” said Taparia. Nifty 50 Outlook Nifty 50 index faced rejection at 23,550 zones and slipped lower throughout the day, closing 1.

50% lower at 23,165.70 on profit booking. “ Nifty 50 took a breather at its 50 DEMA and closed with losses of around 350 points.

It formed a bearish candle on the daily frame with a longer upper shadow indicating pressure at higher zones. Now, if it holds below 23,333 zones, weakness could be seen towards 23,000 and 22,800 zones whereas hurdles are placed at 23,400 then 23,550 zones,” Taparia said. Bank Nifty Outlook Bank Nifty index plunged 737.

35 points, or 1.43%, to close at 50,827.50 on Tuesday, forming a bearish candle on a daily chart.

“Bank Nifty failed to hold 51,600 zones and drifted sharply towards 50,750 levels in the latter part of the day. It formed a bearish candle on a daily scale with a longer upper shadow as selling pressure is seen at higher zones to close with losses of around 740 points near 50,800 zones. Now, till Bank Nifty holds below 51,000 zones some weakness could be seen towards 50,500 then 50,250 levels, while on the upside hurdle is seen at 51,250 then 51,500 zones,” said Taparia.

Chandan Taparia has recommended two stocks to buy today, April 2, and one stock to sell. Taparia recommends buying HDFC Life Insurance Company shares and Indian Hotels Company shares, while suggesting selling Tech Mahindra stock futures. Stocks to buy HDFC Life share price has broken out of a pole and flag pattern on the daily chart with higher than average buying volumes to support the up move.

The ADX line is headed up which confirms the strength of the bullish strength, Taparia said. He recommends buying HDFC Life shares for a target price of ₹ 725, suggesting a stop loss at ₹ 675. Indian Hotels share price is retesting its breakout from an ascending triangle pattern, forming a hammer candlestick which confirms the bullish sentiment.

The MACD indicator is positively placed which has bullish implications, the MOFSL analyst said. He recommends buying Indian Hotels shares for a target price of ₹ 850, keeping a stop loss of ₹ 780. Tech Mahindra share price has breached below its key support levels on the daily chart and is respecting its 20 DEMA resistance zones.

The RSI indicator is showing weakness which confirms the downwards trend. He recommends selling Tech Mahindra futures for 24 April expiry for a target price of ₹ 1,325, suggesting a stop loss at ₹ 1,435. 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..