Chandan Taparia’s Top Day Trading Picks: How to Play Dixon Tech, Voltas, and Petronet LNG on August 19!

Indian stock markets ended the day with minimal changes as investors took profits and reacted to mixed signals from global markets ahead of the Federal Reserve meeting. The BSE Sensex dropped by 12.16 points, closing at 80,424.68, while the Nifty 50 gained 31.50 points, ending at 24,572.65.

Chandan Taparia, Head of Equity Derivatives and Technicals at MOFSL, noted that the Nifty opened on a positive note above 24,600 and reached its highest point early in the session. The index showed some weakness in the first hours but remained within a tight range afterward. It formed a small bearish candle on the daily chart with a longer lower shadow, suggesting that minor declines were quickly absorbed. Nifty closed above 24,550, gaining around 30 points. For further gains, it needs to stay above 24,500, potentially moving towards 24,700 and 24,900, with support levels at 24,450 and 24,200.

The volatility index, India VIX, decreased by 0.61% from 14.40 to 14.32, indicating reduced market volatility, which is favourable for bulls.

In the options market, the highest call open interest (OI) is at the 25,000 and 24,600 strikes, while the highest put OI is at the 23,900 and 24,500 strikes. This data suggests that the market might trade within a broader range of 24,200 to 25,000, with an immediate range of 24,400 to 24,800.

For Bank Nifty, Taparia mentioned that it opened positively but couldn’t maintain its position above 50,700. It traded within a narrow 300-point range and ended below 50,400, forming a small bearish candle. The index faces resistance near its 50-day exponential moving average (DEMA) but has multiple support levels at lower zones. To see a bounce, Bank Nifty needs to stay above 50,250, aiming for 50,750 and 51,000, with support at 50,250 and 50,000.

Taparia also recommended three stocks for trading on August 19, expecting them to see a decent upward movement:

1. Dixon Technologies: Buy at ₹12,784, with a target price of ₹13,650 and a stop loss at ₹12,315. The stock has formed a Double Bottom pattern on the daily chart, indicating a bullish trend with strong buying volumes and upward momentum shown by the MACD indicator.
2. Voltas: Buy at ₹1,609, with a target price of ₹1,730 and a stop loss at ₹1,550. The stock has formed a Rising Three Methods pattern, which suggests a continuation of the bullish trend. The ADX indicator also shows that the uptrend has strength.
3. Petronet LNG: Buy at ₹375, with a target price of ₹395 and a stop loss at ₹365. The stock has broken out from an ascending triangle pattern on the daily chart, with strong buying volumes. The RSI indicator suggests that upward momentum is building.