Sensex & Nifty Hit Record Highs! Chandan Taparia Recommends Reliance, Airtel, Tata Motors for Intraday Gains Today

The Indian stock market reached new heights on Thursday, August 29, with Sensex and Nifty 50 both setting record highs. The Sensex climbed to 82,285.83 during the session, while the Nifty 50 hit 25,192.90. By the end of the day, the Sensex had gained 349 points (0.43%) to close at 82,134.61, and the Nifty 50 rose 100 points (0.40%) to finish at 25,151.95. Both indices closed at their highest levels ever.

Nifty Outlook

Chandan Taparia, Head of Equity Derivatives and Technicals at MOFSL, noted that the Nifty Index started flat but gained momentum in the first half of the session before seeing large swings later on. The index reached a new all-time high of 25,192 and closed with a gain of about 100 points. It formed a bullish candle on the daily chart and achieved its highest close ever. The Nifty has been steadily moving higher over the past four sessions, creating new highs. It now needs to stay above 25,100 to continue its upward trend towards 25,300 and 25,450, with support around 25,000 and 24,850.

India VIX, a measure of market volatility, dropped by 1.16%, going from 13.95 to 13.79. Although volatility has risen slightly in the past few sessions, it remains low, which is helping to support bullish sentiment.

In terms of options, the highest Call Open Interest (OI) is at the 26,000 and 25,200 strikes, while the highest Put OI is at the 25,000 and 24,000 strikes. There is significant Call writing at 26,000 and 26,500 strikes, and Put writing at 24,000 and 23,000 strikes. This data suggests a broader trading range between 24,800 and 25,600, with an immediate range of 24,900 to 25,400.

Bank Nifty Outlook

Regarding the Bank Nifty Index, Taparia added that it opened flat but saw buying interest in the first half of the session, pushing it up to 51,350. However, it later dropped back to around 51,000. The index formed a small-bodied candle on the daily chart and was highly volatile in the last hour of trading. To continue its upward movement towards 51,500 and 51,750, the index needs to hold above 51,000, with support at 51,000 and 50,800.

Chandan Taparia’s Stock Recommendations for August 30

Taparia recommends buying the following stocks, which he believes are well-positioned for gains:

Reliance Industries:

• Buy at ₹3,041
• Target Price: ₹3,140
• Stop Loss: ₹2,985
  An Inverted Head and Shoulder Pattern has appeared on the daily chart with a breakout on the upside, indicating a shift to a bullish trend. The RSI indicator has crossed above the centerline, signaling that momentum is picking up and confirming the up move.

Bharti Airtel:

• Buy at ₹1,565
• Target Price: ₹1,635
• Stop Loss: ₹1,525
  The stock has broken out of a symmetrical triangle pattern with strong buying volumes, taking it to new all-time highs. The MACD Momentum Indicator has given a bullish crossover, confirming the upward trend.

Tata Motors:

• Buy at ₹1,121
• Target Price: ₹1,176
• Stop Loss: ₹1,095
  The stock is following its rising trendline, with the latest candle being a long bullish one, confirming that the major trend is still intact. The Accumulation/Distribution line has made higher highs, indicating that accumulation is happening at current levels.