Top Stock Picks for Today: SBI, Mahindra & Mahindra, and NALCO Recommended for Potential Gains

Indian stock markets took a sharp hit on Monday, with the Sensex and Nifty 50 both dropping over 1%. The Nifty 50 ended at 23,995.35 points, down 1.27%, while the Sensex closed 1.18% lower at 78,782.24 points.

Market Outlook

According to Chandan Taparia, Head of Equity Derivatives and Technicals at MOFSL, the Nifty is showing weakness, forming a bearish pattern over the last few sessions. If it stays below 24,000, further declines may be expected, targeting 23,800 and 23,650 levels. Resistance is positioned at 24,200 and 24,350.

On the options side, the highest Open Interest (OI) for Calls is at 25,000, followed by 24,300, while the highest Put OI is at 23,000 and 23,500. This suggests a broad trading range between 23,000 and 24,300, with immediate movements expected between 23,500 and 24,200.

For Bank Nifty, Taparia notes it struggled to hold at 51,750 and fell to 51,200 by session end. More weakness could bring it down to 51,000 and then 50,750, with resistance at 51,500 and 51,750.

3 Stocks to Buy Today

1. State Bank of India (SBI)

• Buy at: ₹829
• Target: ₹870
• Stop Loss: ₹807
  SBI is showing strong buying momentum after breaking out of a consolidation phase. Despite the broader market’s weakness, PSU banks like SBI are performing well. With a bullish MACD crossover, SBI appears positioned for further gains.

2. Mahindra & Mahindra Ltd. (M&M)

• Buy at: ₹2,883
• Target: ₹3,050
• Stop Loss: ₹2,795
  M&M has bounced from key support, forming a bullish candle and crossing important moving averages, signaling a reversal. Its Stochastic indicator suggests positive momentum, making it a favorable buy.

3. National Aluminium Co. Ltd. (NALCO)

• Buy at: ₹230
• Target: ₹245
• Stop Loss: ₹223
  NALCO is trading near all-time highs with a pennant pattern, indicating continued strength. Holding above its 20-day EMA, the stock has shown that any minor dips are attracting buyers. The Rate of Change indicator also points to an upward trend.

These stocks are recommended as strong buys based on technical signals, despite the current market volatility.