Shares to buy or sell: Chandan Taparia recommends three stocks to buy today – 10 June

The Indian stock market is expected to extend its rally and open higher on Tuesday, led by positive global market cues. The trends on Gift Nifty also signal a positive start for the benchmark indices, Sensex and Nifty 50.

The domestic market ended with strong gains on Monday, with both the benchmark indices extending rally for the fourth consecutive session.

The Sensex rose 256.22 points, or 0.31%, to close at 82,445.21, while the Nifty 50 ended 100.15 points, or 0.40%, higher at 25,103.20.

On the Nifty options front, maximum Call OI (Open Interest) is at 25,500 then 26,000 strike, while maximum Put OI is at 25,000 then 24,800 strike.

“Call writing is seen at 25,100 then 25,200 strike, while Put writing is seen at 25,100 then 24,400 strike. Options data suggests a broader trading range in between 24,600 to 25,600 zones, while an immediate range between 24,900 to 25,300 levels,” said Chandan Taparia, Head – Derivatives and Technicals, Wealth Management, MOFSL.

Nifty 50 Outlook

Nifty 50 managed to stay above the 25,000 level, which is an important support. Nifty 50 formed a small-bodied bearish candle on the daily chart, continuing its sequence of higher high – higher lows for the last four sessions, which shows supports are shifting higher, Taparia said

“Now it has to hold above 25,000 zones for an up move towards 25,200, then 25,400 levels while supports are shifting higher at 25,000, then 24,850 zones,” added Taparia.

Bank Nifty Outlook

Bank Nifty index formed a small bearish candle on the daily scale as some cooling off was seen from higher zones, but buying interest was visible at lower levels and closed near 56,850 zones.

“Bank Nifty index gave its highest daily close as buying interest was seen in selective banking stocks as supports are gradually shifting higher. Now, it has to hold above 56,500 zones for an up move towards new life high of 57,250 then 57,500 zones, while on the downside, support is seen at 56,500 then 56,250 levels,” said Taparia.

Chandan Taparia has recommended three stocks to buy today, June 10. Taparia recommends buying Jindal Steel & Power, REC Ltd and State Bank of India (SBI) shares.

Jindal Steel & Power | Buy | Target Price: ₹1,020 | Stop Loss: ₹950

Jindal Steel & Power share price is giving pole and flag breakout on daily scale with higher than average traded volumes. The MACD indicator is on the verge of giving a bullish crossover which may confirm the upwards momentum. Adding to the positive sentiment, the broader metal sector is also showing notable strength, which could provide additional support to the stock’s rally, Taparia said.

He recommends buying Jindal Steel & Power shares for a target price of ₹1,020 apiece, while maintaining a stop loss at ₹950 level.

REC | Buy | Target Price: ₹450 | Stop Loss: ₹415

REC share price has given a range breakout on the daily chart with a surge in traded volumes to support the up move. It has surpassed above its 200 DEMA and the RSI momentum indicator is rising which confirms the uptrend, said the MOFSL analyst.

He has a ‘Buy’ call on REC shares, with a target price of ₹450 and stop loss of ₹415.

SBI | Buy | Target Price: ₹855 | Stop Loss: ₹803

SBI share price has formed a bullish mat hold pattern on the daily chart which suggests a continuation of the uptrend. It is respecting its 50 DEMA with slight dips being bought into. The ADX line has turned up confirming the strength of the uptrend, said Taparia.

He suggests buying SBI shares for target price of ₹855, and keeping stop loss at ₹803 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.