Recommendations from Chandan Taparia: How to trade Escorts, Dixon Tech and Glenmark Pharma stocks on June 7?

Stocks to buy: The Indian stock market maintained its positive momentum, indicating stability following the results of the 2024 Lok Sabha elections on June 7. Both the Sensex and Nifty 50 indices rose nearly 1 percent each, marking the second straight session of gains. This upward trend reflects optimism about political stability and policy continuity following the formation of a new coalition government.

Also read: The combined value of Microsoft, Nvidia and Apple is greater than that of the Chinese stock market; what drives tech optimism?

“The nifty index opened the gap by 180 points and witnessed fluctuations within a certain range throughout the day. It gained support near 22650 and then crossed 22900 zones to close with a gain of around 200 points. It formed a small bodied Bullish candle on the daily frame with longer lower shadow and started forming higher lows from the last two sessions. Now it needs to stay above 22750 zones for an upward move towards 22950 and then 23100 zones while support points are placed at 22650 and then 22450 zones,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.

The India VIX cooled 12.39% from 18.89 to 16.55 levels. Volatility fell for the second day in a row, comforting bulls to hold in higher zones.

On the options front, the weekly maximum call OI is at 23000 and then 23500, while the maximum put OI is at 22500 and then 22300. Call writing is seen at 23200 and then 23000 while Put writing is seen at 22800 and then 22700. Options data suggests a wider trading range between the 22200 and 23500 zones while an immediate range is between the 22500 and 23100 levels .

Bank Handy

On the prospects of Bank Nifty, Taparia said, “The Bank Nifty Index opened the gap and gradually extended the momentum to 49650 zones in the first half of the session. Later, it remained consolidating within a 400-point range between the 49,000 and 49,400 zones and ended with a gain of around 240 points near the 49,300 zones. It formed a small Bodied candle on a daily scale, after some break was observed in higher zones following huge volatile swings in the past few days, but managed to hold its 20DEMA. Now it needs to hold above 48888 zones for a jump towards 49750 and then 50,000 zones, while on the downside support can be seen at 48888 and then 48500 levels.”

Also read: Nifty FMCG gains 6% in 3 sessions: Is the sector ready for a turnaround?

Chandan Taparia recommended three stocks to buy on June 7. According to him, these stocks are technically positioned to see decent upside. These three stocks to buy today are Escorts, Dixon Technology and Glenmark Pharma.

Stocks to buy

Escorts: Buy from 4,011 | Target price: 4,300 | Stop Loss: 3,850

Escorts has broken the consolidation on the daily chart and managed to close above the same. Buying is visible in the Auto field, which can support the continued upward movement.

Dixon Technology: Buy from 9762 | Target price: 10,500 | Stop Loss: 9,400

The shares are generally in an upward trend and every small decline is capitalized on. It has allowed Inside Bar to break through on a daily scale and perform relatively better within IT Space.

Also read: Cochin Shipyard, Garden Reach and Mazagon Dock gain up to 15% as market recovers from election results shock

Glenmark Pharma: Buy at 1,210 | Target price: 1,290 | Stop Loss: 1,170

The stock perfectly respects 20 WEMA and goes slightly higher. It caused a range breakout on the daily chart and the highest daily close ever, which has bullish implications. Momentum indicator RSI is positively positioned, which could support the stock’s continued rise.

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