Motilal Oswal Financial Services' head of derivatives and technicals, Chandan Taparia, issued a set of three buy recommendations on Friday, August 14, 2026, as the Indian equity market opened with a muted tone. The analyst’s outlook came amid a broader global risk‑off sentiment that kept the Nifty 50 and Sensex near their previous close levels.
Retail traders, portfolio managers and institutional investors who track Motilal Oswal’s research are the primary audience for these recommendations. The picks—Radico Khaitan, One 97 Communications (Paytm) and DLF—span consumer alcohol, digital payments and real‑estate development, offering a diversified exposure for investors seeking short‑term upside.
What Is Actually Going On
The Indian market entered the trading day on a lower opening, tracking a dip in global cues. The pre‑market Gift Nifty, a futures‑based indicator, hovered around 24,436 points, roughly 32 points below the Nifty futures’ prior close. The previous session saw the Nifty 50 settle at 24,395.85, a modest 0.16% decline, while the Sensex edged up 113.61 points to close at 78,079.96.
Option‑chain data revealed that the highest open interest (OI) for calls sat at the 24,500 and 24,600 strikes, whereas puts attracted the most OI at 24,300 and 24,400. Taparia interpreted this distribution as a sign that market participants expect the index to oscillate within a 24,200‑24,700 band, with a tighter immediate range of 24,300‑24,600.
On the day’s price action, the Nifty 50 opened flat and stayed confined to a 100‑point corridor, producing a bearish daily candle and extending a series of lower highs over eight sessions. Taparia warned that a sustained hold above 24,400 could unlock a rally toward 24,550 and then 24,650, while a break below could pull the index toward support at 24,300 and 24,200.
Bank Nifty, meanwhile, opened on a negative note and drifted toward the 57,500 zone. The index formed an inside bar on the daily chart, indicating indecision, but remained above its 20‑day exponential moving average (20‑DEMA). A bounce above 57,500 could push the index to 58,000 and 58,250, whereas a slip below might expose weakness near 57,250 and 57,000.
How It Works
Taparia’s recommendation process blends technical chart patterns, volume cues and option‑flow analysis. The steps he follows can be summarised as follows:
Identify market bias: Examine global cues, pre‑market indicators such as Gift Nifty and recent index closes.
Analyse option open interest: Look for concentrations of call or put OI to gauge where traders expect price to move.
Spot chart formations: Detect bearish candles, lower highs, inside bars and other patterns that signal trend direction.
Confirm with moving averages: Verify that price stays above key averages like the 20‑DEMA for bullish bias.
Cross‑check volume: Ensure that any breakout or consolidation is backed by rising trade volume.
Select stocks: Choose equities that exhibit strong momentum, favourable technicals and sector‑specific catalysts.
Applying this framework, Taparia singled out three equities that met his criteria for a short‑term buying opportunity.
Who This Affects
Individual investors who rely on technical analysis for entry points are likely to act on Taparia’s picks. The recommendation aligns with the strategies of day‑traders and swing‑traders who monitor option‑flow and price patterns to time their positions.
Institutional fund managers, especially those managing equity‑linked mutual funds, may also adjust their sector allocations based on the analyst’s view. A tilt toward consumer alcohol (Radico Khaitan), fintech (Paytm) and real‑estate (DLF) could influence the weightings of large‑cap exposure in their portfolios.
Brokerage firms that disseminate Motilal Oswal’s research will see increased client inquiries, potentially driving higher trade volumes for the three highlighted stocks. The ripple effect may extend to ancillary market participants, such as market makers and algorithmic trading platforms that incorporate analyst sentiment into their models.
What It Does Not Mean
Taparia’s three‑stock list is not a blanket endorsement for all market participants. The recommendations are based on short‑term technical signals and do not guarantee long‑term profitability. Investors with a fundamentally‑driven, buy‑and‑hold approach may find the picks misaligned with their investment horizon.
Furthermore, the advice does not imply that the broader Nifty 50 or Sensex will rally simply because these three stocks are expected to rise. Market‑wide movements depend on macro‑economic data, policy decisions and global risk sentiment, factors that lie beyond the scope of a single analyst’s technical read.
Common Questions
Why did Taparia choose Radico Khaitan?
Radico Khaitan displayed a strong bullish Marubozu candle with high volume, indicating aggressive buying pressure near its all‑time high. The stock also sits above key moving averages, reinforcing a bullish bias.
What technical signaled Paytm as a buy?
Paytm broke out of an inside bar pattern and continued to climb, while its Relative Strength Index (RSI) remained in positive territory. The combination of momentum and price above moving averages suggested further upside.
How is DLF positioned for a breakout?
DLF has been consolidating within a narrowing range and is approaching a falling trendline resistance around 665‑670. Accumulation near moving averages and a potential breach above 670 could trigger fresh upward momentum.
Should investors trade the option‑flow data?
Option open interest can highlight where market participants expect price to move, but it should be used alongside price action, volume and broader market context. Relying solely on OI may lead to mis‑reads.
The Bottom Line
Chandan Taparia’s three‑stock recommendation reflects a technical‑driven view of a market caught between global caution and domestic price oscillations. While Radico Khaitan, Paytm and DLF each show bullish chart patterns, investors must weigh the short‑term nature of these signals against their own risk tolerance and investment horizon. The broader market remains range‑bound, and any upside for the suggested equities will likely be contingent on the Nifty 50 holding above the 24,400 threshold and the Bank Nifty maintaining momentum above 57,500.
This article is based on reporting published by livemint.
