Market Meltdown: Grab These 3 Hot Stocks to Buy Now Before They Soar, Says Chandan Taparia

The Indian stock market took a hit on Thursday, with the Sensex and Nifty 50 both dropping over 2% due to rising geopolitical tensions in the Middle East and negative signals from global markets. Even broader indices like Nifty Midcap and Nifty Smallcap fell by more than 2%.

According to Chandan Taparia, Head of Equity Derivatives and Technicals at MOFSL, the Nifty opened sharply lower, dropping almost 350 points at the start of trading. It fell to 25,230 before closing down 550 points. This movement formed a bearish candle on the daily chart, suggesting pressure in the market. Taparia noted that as long as the index stays below 25,300, further declines to 25,100 and 24,950 are likely, while resistance is seen at 25,350 and 25,500.

Bank Nifty Overview

The Bank Nifty also opened lower by over 600 points and remained under selling pressure. It formed a bearish candle and has been making lower highs and lower lows over the past four sessions. Taparia observed that the index has corrected by nearly 2,700 points recently and closed near its 50-day exponential moving average (DEMA). He expects weakness to continue until it holds below 52,222, with potential drops to 51,500 and 51,250, while resistance levels are at 52,222 and 52,350.

Top 3 Stocks to Buy Today

Chandan Taparia recommends the following three stocks for potential buying opportunities:

1. JSW Steel
   • Buy at ₹1,039
   • Target Price: ₹1,090
   • Stop Loss: ₹1,016
   • The stock is in a strong uptrend with higher highs and higher lows, supported by increasing trading volumes.
2. Polycab
   • Buy at ₹7,332
   • Target Price: ₹7,730
   • Stop Loss: ₹7,125
   • The stock has broken out of a consolidation phase, showing strong upward momentum.
3. Lal Path Lab
   • Buy at ₹3,419
   • Target Price: ₹3,610
   • Stop Loss: ₹3,327
   • The stock has formed a double bottom pattern, with strong buying volumes and bullish signals from technical indicators.

Conclusion

Despite a tough day for the market, these three stocks show promise for investors looking for potential gains in the current environment.