The latest analysis and commentary by stock market guru Chandan Taparia, Derivative & Technical Analyst, Motilal Oswal Securities on what is moving the markets today.
He shared his views and readings on Reliance Industries, Muthoot Finance, TVS Motors, and Federal Bank.
Stock specific, Taparia said, “Buy Reliance Industries. We have seen strong momentum in the counter in last trading session and in the last series the stock has seen rollover of 92 percent and now fresh longs are also adding with some Put writing activity at the lower strike. It is just few points away from its lifetime highs and all set to head towards Rs 1,355 in higher zone with the Put writing activity. So I recommend to go long on Reliance with a stop loss of Rs 1,285 and expecting it to move towards Rs 1,355 kind of levels.”
“Second trade is buy on Muthoot Finance. The stock is doing well. It is continuously forming its support to higher zone, trading at higher territory. It has seen the open interest addition of around 26-27 percent in last couple of trading session and longs are intact. Open interest (OI) has increased from 16 lakh shares to 22 lakh shares. Here we are expecting positive momentum towards the new high territory. One can buy with a stop loss of Rs 575 for an upside target towards Rs 620,” he added.
On TVS Motors Taparia recommends going long. He said, “In the last series it fell down but rollover low and now we are seeing some short covering. The stock has surpassed its 50 day exponential moving average. I am expecting the positive momentum and the short covering in the counter. One can buy with a stop loss of Rs 495 for an upside target towards Rs 530.”
“On Federal Bank we are trading through options. The stock has seen decent up move in last three weeks. It has also given a consolidation breakout, remained range bound and surpassed the same with a strong momentum. One can look for up move towards Rs 98-99. One can trade with 90 Call which is trading near Rs 3, put a stop loss of Rs 1, and this Call can move towards Rs 8 on the higher side,” he added.
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