Chandan Taparia recommendations: How to trade Cummins India, Godrej Consumer, IndiGo shares tomorrow

The Sensex rose 111.66 points, or 0.15%, to end at 72,776.13, while the Nifty 50 settled 48.85 points, or 0.22%, higher at 22,104.05.

The Nifty index opened flattish on May 13 and after the fall in the early session, it saw a decent recovery and recouped all its intraday losses. The Bank Nifty index ended its eight-day losing streak and jumped 333 points to close at 47,754. 

Here’s the technical outlook for Nifty 50 and Bank Nifty for May 14:

Nifty Outlook

The Nifty 50 formed a bullish candle on the daily frame with a longer lower shadow indicating a strong pull back move from lower levels. Now it has to hold above 22,050 zones for a bounce towards 22,222 then 22,350 zones whereas supports are placed at 21,950 then 21,800 zones, said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.

Also Read: Wall Street today: US stocks rise as investors eye inflation data

On the weekly front, Maximum Call Open Interest (OI) is at 22,300 then 22,500 strike while Maximum Put OI is at 22,000 then 21,800 strike. Call writing is seen at 22,300 then 22,400 strike while Put writing is seen at 21,800 then 22,000 strike. Option data suggests a broader trading range in between 21,500 to 22,500 zones while an immediate range between 21,900 to 22,300 levels, he added.

India VIX, the fear index, spiked 11.53% from 18.47 to 20.60 levels. Taparia believes VIX needs to fall below 1-18 zones for some stability and smoother ride in the market.

Bank Nifty Outlook

Bank Nifty Index opened marginally lower and gradually drifted lower towards 46,983 mark in the first half of the session. However, it witnessed a sharp recovery from lower zones and wiped out its intraday losses to extend the momentum towards 47,800 zones in the latter part of the day. 

“It formed a bullish engulfing pattern on daily scale with long lower shadow which indicates buying was seen at lower zones but is still forming lower highs from the last eight sessions. Now it has to cross and hold above 47,777 zones for a bounce towards 48,250 then 48,500 zones while on the downside support is seen at 48,500 then 48,250 levels,” Taparia said.

Also Read: Stock market crash: Why are FIIs selling Indian equities aggressively? Are Lok Sabha elections to be blamed?

Stocks to buy tomorrow

Chandan Taparia has recommended three stocks to buy tomorrow, May 14. These stocks include Cummins India, Godrej Consumer Products and InterGlobe Aviation (IndiGo). Here are the three stocks to buy on Tuesday:

Cummins India | Buy | Target: ₹3,700 | Stop Loss: ₹3,400

Cummins India stock has been making higher top – higher bottom on weekly scale and it is scaling higher day by day. We have seen decent run up in most of the Capital Good stocks and the entire sector is outperforming the broader market. It managed to hold ₹3,300 zones and traded above all the moving averages at new high territory. Mechanical indicators are holding the bullish stance thus expecting the next leg of rally in the stock towards ₹3,700 levels.

Also Read: LTIMindtree vs Coforge: Which mid-cap IT stock should you pick for long term?

Godrej Consumer Products | Buy | TP: ₹1,415 | Stop Loss: ₹1,305

Godrej Consumer Products stock is all set for the next leg of rally after the consolidative move of the last two trading sessions. It has been making higher top – higher bottom on weekly scale and holding well above ₹1,300 zones. It added build up of long and those positions are intact in the system. Price volume breakout with support from open interest activities indicates bullish momentum to continue. 

One can buy the stock with support of ₹1,305 for an upside move towards ₹1,415 levels.

InterGlobe Aviation | Buy | Target Price: ₹4,300 | Stop Loss: ₹3,980 

IndiGo shares are heading towards new sky as every small decline is being bought. It has been forming higher lows on weekly scale while consolidation breakdown seen in daily scale. Now IndiGo stock has to hold above ₹4,000 zones to witness a fresh move towards ₹4,300 zones.

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.

Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!

Published: 13 May 2024, 10:28 PM IST