Chandan Taparia Recommends Three Stocks to Buy on September 18 as Markets Open Flat

Chandan Taparia, Head of Derivatives Technicals, Wealth Management at Motilal Oswal Financial Services Ltd, noted that maximum call open interest is concentrated at 23,300 and 23,800 strikes, while maximum put open interest is at 23,200 and 23,000 strikes. Call writing is seen at 23,300 and 23,350, and put writing at 23,300 and 23,250, suggesting a broader trading range between 22,800 and 23,600, with an immediate range of 23,000 to 23,400.

The Nifty 50 opened flat and remained range-bound, failing to sustain higher levels and finding support near 23,200, forming a bullish daily candle indicating support-based buying. Taparia warned that if the index holds below 23,300, weakness could extend to 23,150 and then 23,000, while upside hurdles may appear at 23,450 and 23,550.

Bank Nifty opened marginally lower, saw initial momentum toward 56,600, but drifted back to the 56,000 zone later, forming a small-bodied candle with a long upper shadow, indicating selling pressure at higher levels and underperformance relative to the benchmark. Taparia added that a break below 56,000 could lead to weakness toward 55,750 and 55,500, with resistance at 56,500 and 56,750.

Taparia recommended three stocks to buy on September 18: Laurus Labs, Bharat Heavy Electricals Ltd (BHEL), and HDFC Life Insurance Company. For Laurus Labs, the stock is in an overall uptrend, respecting its 20 DEMA, having bounced back from a healthy correction and forming a bullish candle signalling renewed buying momentum. BHEL is holding gains despite broader market weakness, bouncing off the 50 DEMA, forming a strong bullish candle and nearing a trend line breakout, with RSI in positive territory. HDFC Life has negated its lower-low sequence, formed a strong support zone near 1550 coinciding with its 20 DEMA, and a bullish Marubozu candle indicating strong buying momentum; sustaining above this level could lead to upside toward 1750 and fresh highs.

The article includes a disclaimer that the views are those of the individual analyst and not Mint, advising investors to consult certified experts before making investment decisions.