Shares to buy or sell: Chandan Taparia recommends three stocks to buy and sell today – February 25

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to see a muted opening on Tuesday following weak global market cues. The trends on Gift Nifty also indicated a tepid start for the domestic equity indices.

On Monday, the Indian stock market ended sharply lower, with the benchmark Nifty 50 closing below the 22,600 level.

The Sensex crashed 856.65 points, or 1.14%, to close at 74,454.41, while the Nifty 50 settled 242.55 points, or 1.06%, lower at 22,553.35.

On option front, Chandan Taparia, Head – Derivatives and Technicals, Wealth Management, MOFSL, noted that maximum Call OI (Open Interest) is at 23,000 then 22,700 strike while maximum Put OI is at 22,600 then 22,000 strike.

“Call writing is seen at 22,600 then 22,700 strike while Put writing is seen at 22,600 then 22,500 strike. Option data suggests a broader trading range in between 22,000 to 23,000 zones while an immediate range between 22,400 to 22,800 levels,” Taparia said.

Nifty 50 Outlook

Nifty 50 formed a bearish candle with a longer upper shadow on the daily chart, indicating strong selling pressure at higher levels. Now, till Nifty 50 holds below 22,800 zones, weakness could be seen towards 22,400 then 22,250 zones whereas hurdles are placed at 22,700 then 22,800 zones, said Taparia.

Bank Nifty Outlook

Bank Nifty index ended 0.67%, or 329.25 points, lower at 48,651.95 on Monday.

“Bank Nifty formed a small bodied candle on daily scale with long lower shadow as buying is visible at lower levels but momentum is missing at higher zones. Now till it holds below 48,750 zones some weakness could be seen towards 48,250 then 48,000 zones while on the upside hurdle is seen at 49,000 then 49,250 levels,” Taparia said.

Chandan Taparia has recommended two stocks to buy today and one stock to sell today, February 25. Taparia recommends buying Berger Paints India and SBI Cards and Payment Services, while he recommends selling Tata Elxsi.

Stocks to buy

Berger Paints | Buy | Target Price: ₹530 | Stop Loss: ₹488

Berger Paints share price has broken out of an inverted head and shoulder pattern on the daily chart and crossed above its 100 DEMA which has bullish implications. The RSI indicator is rising which supports the bullish momentum, Taparia said.

He recommends buying Berger Paints shares for a target price of ₹530, while maintaining a stop loss at ₹488 level.

SBI Cards & Payment Services | Buy | Target Price: ₹885 | Stop Loss: ₹815

SBI Cards share price is retesting its breakout from a consolidation zone with a surge in buying volumes visible on the daily scale. The ROC indicator has made higher highs which confirm the bullish momentum, said Taparia.

He recommends buying SBI Cards & Payment Services shares for a target price of ₹885 and keeping a stop loss at ₹815.

Tata Elxsi | Sell | Target Price: ₹5,590 | Stop Loss: ₹5,970

Tata Elxsi stock is in an overall downtrend respecting its lower lows – lower highs formation. It is respecting its 20 DEMA resistance zones which slight rises being sold into. The ADX line has turned up which confirms the strength of the bearish trend, Taparia said.

He recommends selling Tata Elxsi 27th February Futures for a target price of ₹5,590. Stop loss for the trade is suggested at ₹5,970 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.