The latest analysis and commentary by stock market guru Chandan Taparia of Motilal Oswal Securities on what is moving the markets today. Check out his top stock recommendations.
He spoke at length about Muthoot Finance, ACC, Colgate Palmolive, and Sun Pharmaceutical.
Speaking about individual stocks, Taparia said, “First trade is buy on Muthoot Finance. The stock has been outperforming and trading near to its lifetime high territory. Stock has rallied by more than 13-14 percent in the last month and added built up of long positons with roll over activity. Even on last trading session the stock has given a breakout from a small and pole and flag pattern and added built up of around 6-7 percent. So recommending to go long with a stop loss of Rs 503 and expecting it to move towards Rs 535 kind of level.”
“Second trade is on ACC. Here we are observing that a small decline is being bought. We have seen some short covering. Stock is hovering near to its 50 day exponential moving average, respecting to its channel support trend line. We have seen positive cross over and stock is forming slightly higher lows from last three to four trading sessions. Because of all the setup, we are expecting the positive move in the counter towards Rs 1,560. One can buy with a stop loss of Rs 1,478,” he added.
On Colgate Palmolive Taparia said, “We have seen buying interest in most of the FMCG counter in most part of last two to three series and Colgate has been outperforming. The stock has entered into the lifetime high territory continuously making higher tops and higher bottom formation on the weekly scale. We have seen the positive rollover which indicates that momentum could even continue in the January series well. So here we are expecting a positive move towards Rs 1,390 and one can buy with a stop loss of Rs 1,318 kind of level.”
“One option trade that is from the beaten down bottom facing approach that is from the Sun Pharmaceutical. The stock is trending from its deep oversold territory. After a long time we are witnessing some Put writing activity and stock is finding some stability after the consolidation of last 10-12 trading sessions and because of that some short covering cannot be ruled out. It has immediate hurdle near to Rs 435 and above that it can head towards Rs 450 kind of zones. So looking at the entire setup, we are expecting short covering. So suggesting to trade with 430 Call which is trading near to Rs 16-17, put a stop loss of Rs 13 and on short covering this stock can move towards Rs 25,” he added.
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