Chandan Taparia Recommends HAL, JSW Steel, ACME Solar
- Chandan Taparia of Motilal Oswal recommends buying HAL, JSW Steel, and ACME Solar.
- Nifty50 approaches crucial resistance levels on the National Stock Exchange.
- Defense sector stocks see renewed buying interest from institutional investors.
- Steel manufacturing companies benefit from steady domestic infrastructure demand.
- Renewable energy stocks gain traction following aggressive capital expenditure plans.
Indian equities opened on a cautious note this Tuesday morning as benchmark indices hovered near key technical thresholds on the Bombay Stock Exchange and the National Stock Exchange. Market participants kept a close eye on sectoral movements as traders weighed global commodity price trends against robust domestic liquidity inflows. Against this dynamic backdrop, Chandan Taparia, Senior Vice President and head of derivative research at Motilal Oswal Financial Services, released his high-conviction trading recommendations for the session. Taparia identified three standout equities displaying strong technical setups capable of outperforming the broader market during Tuesday's trading hours. His curated list features a mix of defense heavyweights, metal giants, and renewable energy players that have caught the attention of institutional desks in Mumbai. Investors are advised to track strict stop-loss parameters while entering these counters to mitigate intraday volatility risks. "Traders should maintain a disciplined approach as domestic indices test higher resistance zones," market analysts noted regarding the current trading setup. The Nifty50 index fluctuated near the 25,000-point mark, reflecting a tug-of-war between bullish institutional buyers and profit-booking retail participants. According to official data, Foreign Institutional Investors, commonly known as FIIs, poured a net ₹4,200 crore into Indian equities over the previous trading sessions, providing strong underlying support to large-cap counters. Domestic Institutional Investors, or DIIs, matched this momentum with steady purchases across mutual fund portfolios. • Nifty50 traded within a narrow band of 120 points during early morning exchanges. • Bank Nifty index showed relative strength, led by private sector lenders. • Rupee traded stable at around ₹83.95 against the US Dollar. Taparia emphasized that stock selection remains the primary driver for generating alpha in the current market environment rather than chasing headline indices blindly. Technical charts indicate that counters with strong order books and clear volume breakouts offer superior risk-reward ratios for short-term traders. Market participants are closely watching sectoral gauges, particularly public sector enterprises and infrastructure-linked equities, for sustained momentum through the afternoon session.
HAL Shares Gain Momentum on Strong Defense Order Book Backing
Hindustan Aeronautics Limited emerged as the top defense pick in Taparia's recommendation list for Tuesday, drawing strong buying interest from technical desks. Shares of the state-run aerospace and defense manufacturer climbed in early trade following reports of steady execution on major domestic military supply contracts. Taparia pointed to a solid breakout on the daily charts, supported by above-average trading volumes that suggest institutional accumulation. Traders looking to buy HAL shares are advised to keep a strict stop loss below the immediate support level of ₹4,650, with upside targets projected toward ₹4,900 in the near term. The company's massive order book, valued at over ₹85,000 crore, provides multi-year revenue visibility that continues to attract long-term investors. Government capital expenditure toward indigenous defense production has acted as a primary catalyst for the stock over the past twelve months. "Defense manufacturing continues to witness strong structural tailwinds driven by indigenization policies," industry experts noted. Trading volumes in the counter crossed 2.5 million shares within the first hour of market opening, signaling high participation from both retail and algorithmic traders. The Relative Strength Index on the daily chart hovered around 62, indicating positive momentum without entering overbought territory. Analysts recommend using intraday dips toward the ₹4,720 zone as an accumulation opportunity for swing traders. • HAL order book visibility extends beyond five years. • Daily trading volume surged 35% above its 30-day average. • Resistance spotted near the ₹4,880 threshold on NSE. The broader defense sector index gained 1.4% on the National Stock Exchange, outperforming the benchmark Nifty50. Profitability margins for aerospace component makers have remained resilient despite rising raw material costs, thanks to favorable pricing escalation clauses in government contracts. Market participants are also keeping tabs on upcoming export deals involving advanced light helicopters and trainer aircraft to international buyers.
JSW Steel Targets Higher Levels Amid Robust Domestic Infrastructure Demand
JSW Steel secured the second spot on Taparia's intraday recommendation sheet, backed by bullish technical patterns forming on the daily and hourly charts. The steel major witnessed buying support near the ₹940 mark, setting the stage for a potential rally toward ₹990 with a recommended stop loss at ₹925. Domestic consumption remains the primary growth engine for steel producers as highway construction, metro rail projects, and urban real estate developments accelerate across India. Global metal markets also provided supportive cues, with benchmark steel futures stabilizing on international exchanges after weeks of consolidation. Taparia highlighted that JSW Steel's chart exhibits a classic cup-and-handle breakout pattern, which historically signals a continuation of the upward trend. Institutional interest in metal stocks has picked up significantly as raw material costs, particularly coking coal, show signs of easing. "Infrastructure spending across the country is translating directly into higher capacity utilization for primary metal producers," sources confirmed. Industry reports indicate that the company recently reported a 12% year-on-year increase in crude steel production for the preceding quarter, crossing 6.5 million metric tons. This operational efficiency has bolstered investor confidence ahead of the upcoming quarterly financial disclosures. Traders are advised to monitor the ₹955 level closely, as a decisive break above this intraday hurdle could trigger aggressive short-covering by bearish speculators. • JSW Steel production touched 6.5 million metric tons last quarter. • Recommended target price stands at ₹990 with support at ₹925. • Sector gauge Nifty Metal advanced 0.8% in morning trade. The steel sector has also benefited from protective trade measures implemented by regulatory authorities to curb cheap imports from overseas markets. Industry executives maintain that domestic demand will easily absorb domestic production capacity additions scheduled over the next two fiscal years. This fundamental strength reinforces the bullish technical outlook presented by brokerage analysts for the near term.
ACME Solar Emerges as Top Renewable Pick with Strong Chart Patterns
ACME Solar Holdings completed Taparia's trio of stock picks for Tuesday, capturing the market's growing enthusiasm for renewable energy infrastructure. The green energy player witnessed a sharp uptick in buying activity after breaking out of a multi-week consolidation range on the National Stock Exchange. Analysts set a target price of ₹310 for the counter, advising market participants to maintain a stop loss at ₹285 to manage downside risks effectively. India's aggressive push toward achieving 500 gigawatts of non-fossil fuel capacity by 2030 has transformed renewable energy companies into favored destinations for institutional capital. ACME Solar's recent commissioning of large-scale photovoltaic projects in Rajasthan and Gujarat has significantly enhanced its operational footprint. Taparia noted that the stock's momentum indicators point toward sustained buying pressure through the afternoon trading session. "Green energy investments are seeing unprecedented capital deployment from both domestic and international funds," analysts pointed out. The company's order pipeline includes several solar-plus-storage projects secured through competitive bidding under central nodal agencies like Solar Energy Corporation of India. Financial institutions have increasingly favored renewable asset owners due to long-term power purchase agreements offering predictable cash flows. Trading turnover in ACME Solar jumped threefold compared to its trailing thirty-day average, reflecting heightened retail and institutional participation. • Renewable sector capital expenditure targets remain robust for 2026. • ACME Solar target set at ₹310 with key support near ₹285. • Intraday volume crossed multiple times the daily average. The broader energy transition narrative continues to attract capital away from traditional carbon-heavy utilities into pure-play renewable developers. Market watchers suggest that companies with established execution capabilities and strong balance sheets will command premium valuations as India accelerates its decarbonization timeline over the coming decade.
Broader Market Dynamics and FII Inflows Shaping September 2026
As trading progressed past the midday bell, the broader Indian stock market demonstrated resilience despite mixed global cues from Asian and European exchanges. The Sensex traded 250 points higher, supported by robust buying in heavyweights across banking, auto, and information technology sectors. Market participants noted that robust domestic liquidity flows are acting as a reliable cushion against foreign capital outflows whenever global macroeconomic jitters flare up. Foreign portfolio investors recorded net purchases worth ₹4,200 crore in the preceding week, reversing a brief phase of cautious selling observed late last month. Domestic mutual funds continued their relentless systematic investment plan inflows, channeling over ₹20,000 crore monthly into Indian equities. This structural shift in domestic retail participation has fundamentally altered how the market absorbs external shocks, providing structural stability to large-cap and mid-cap counters alike. "Domestic retail inflows via SIPs have created a permanent liquidity cushion for Indian markets," financial experts noted. Sectoral rotation remained a key theme, with capital moving swiftly between defensive plays like fast-moving consumer goods and high-beta segments like metals and capital goods. The Indian Rupee held steady at ₹83.95 against the US Dollar, easing imported inflation concerns for manufacturing firms dependent on overseas raw material sourcing. Bond yields remained range-bound, reflecting stable monetary policy expectations from the central bank ahead of the upcoming policy review meeting. • SIP inflows sustained above ₹20,000 crore per month. • Sensex maintained gains above the crucial 81,500 threshold. • FII net purchases crossed ₹4,200 crore during the week. Market analysts advise retail investors to adhere strictly to risk management protocols, avoiding excessive leverage in derivative segments during periods of intraday consolidation. Maintaining a diversified portfolio with exposure to growth-oriented sectors like defense, infrastructure, and renewable energy remains the preferred strategy for navigating the September 2026 trading landscape successfully.