Stocks to buy today: 5 short-term trading ideas by experts for 3 January 2023

Indian market opened lower on Tuesday tracking muted global cues and weak data from China.

Nifty50 has strong support near 18,000-17,959 levels. Traders can use the dip to go long, suggest experts.

India VIX was up by 0.39% from 14.81 to 14.86 levels on Monday. Volatility was slightly up but recently cooled down below 15 zones and needs to hold below 14 marks for a smoother market ride.

Options data is scattered at various far strikes in January monthly series. On the Options front, the maximum Call OI is placed at 19,000 and then towards 19,500 strikes while the maximum Put OI is placed at 18,000 then 17,500 strikes.

“Option data suggests a broader trading range in between 17700 to 18600 zones while an immediate trading range in between 17950 to 18350 zones,” Chandan Taparia, Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.

“Nifty formed a Bearish Piercing pattern on the daily scale on Monday but it has been making higher highs from the last five sessions. It formed a Bullish candle or an Inside Bar on the weekly frame but continues to form lower highs from the last four weeks,” he said.

“Nifty has to continue to hold above 18081 zones, for an up move towards 18250 and 18350 levels whereas supports are placed at 18018 and 17950 levels,” suggests Taparia.

We have collated stocks from various experts for traders who have a short-term trading horizon:

Expert: Dharmesh Shah, Head - Technical, ICICI Securities told ETBureau

State Bank of India: Buy| Target Rs 638| Stop Loss Rs 595
The stock formed a bullish engulfing candle on the weekly chart at 20-weeks EMA and a breakout above a falling channel suggests that the momentum is here to stay.

Titan Company: Buy| Target Rs 2655| Stop Loss Rs 2498’
Buying demand is emerging from the 200-Days EMA, thus providing a favourable risk-to-reward setup.

Tata Communications: Buy| Target Rs 1375| Stop Loss Rs 1280
The stock is rebounding and has taken support at the lower band of the rising channel in place since September 2022.

National Aluminum: Buy| Target Rs 89| Stop Loss Rs 79.50
The stock recorded a breakout above the last four months' range and the MACD is also in a buy mode.

Expert: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher Pvt. Ltd told ETMarkets

GMDC: Buy| Target Rs 165-170| Stop Loss Rs 147

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)