BASF India or Dr. Lal PathLabs: 2 Technical Picks By Sumeet Bagadia On Monday, 7th October

The previous week's Nifty started the week poorly and saw an acceleration of the selloff. Each small rise was soon sold into, causing the Nifty to end the week with a steep 4.31% loss and close barely over the 25,000 threshold. The week's declines in the benchmark indices were led by losses in stocks related to real estate and financial services. Last week, the market saw a precipitous decline that ended its three-week winning run. Both the Sensex and the Nifty50 fell by around 4.50%, ending the week at 81,688.45 and 25,014.60, respectively. The key domestic and global economic data, including the US FOMC Meeting Minutes, the US Core CPI (MoM) (Sep), the US CPI (MoM) (Sep), the US Initial Jobless Claims, the US PPI (MoM) (Sep), the UK GDP data, and the India Interest Rate Decision and RBI Monetary and Credit Information Review, will be the primary sources of guidance for the market this week.

Nifty Prediction Today

"The Nifty 50 has formed a strong bearish candle on the weekly chart, erasing the gains from the previous two weeks, signaling intense selling pressure at higher levels. After breaking the key Fibonacci support at 25,100 and closing negatively, the next critical support is 24,700. A breakdown below this could lead to further declines toward 24,400. On the upside, a close above 25,300 may boost bullish sentiment and drive the index toward 25,700. With heightened volatility, traders are advised to stay cautious and consider buying at critical support levels," said Ms. Palka Arora Chopra, Director of Master Capital Services Ltd.

Bank Nifty Outlook Today

"Nifty Bank has formed a bearish candle on the weekly chart, closing below 51,500, indicating strong selling pressure, especially in large private banks. The next key support is at 51,000, and a breakdown may push the index down towards 50,300. On the upside, if the index sustains above 51,900, it may gain buying momentum toward 52,400. Given the week's closing and increased volatility, traders are advised to adopt a buying strategy around critical support levels to capitalize on potential market fluctuations," added Ms. Palka Arora Chopra.

Stocks To Buy Today

On Monday, October 7, Choice Broking executive director Sumeet Bagadia advised buying two stocks, citing the expectation that the market's dissatisfaction will persist in the near future due to rising crude oil costs triggered by the escalating conflict in the Middle East.

BASF India

Buy BASF in cash @ Rs 8200.05, stop-loss: Rs 7888, target: Rs 8700

BASF daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a notable higher high and higher low pattern, and the company's recent upward swing has effectively violated the neckline, establishing a new week high. This breakthrough indicates the possibility of a significant follow-through upward increase in the stock price.

Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. The stock formed a bullish momentum candle signifying a potential continuation of the uptrend following and the daily strength indicator RSI (14) is moving upwards and positioned above its reference line indicating a positive bias. Furthermore, BASF is currently trading above its crucial 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given the overall chart pattern, the analysis suggests a favourable long trading opportunity for investors.

Based on the above analysis we recommend buying BASF in cash at CMP of 8200.05 for the target of 8700 with a stop loss of 7888.

Dr. Lal PathLabs

Buy LALPATHLAB in cash @ Rs 3504.95, stop-loss @ Rs 3381, target @ 3700

LALPATHLAB is exhibiting strong bullish momentum, currently trading at an all-time high of 3525 levels. This breakout has been accompanied by a consolidation of the upward movement, characterized by higher highs and higher lows, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.

Additionally, LALPATHLAB is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 67.74 levels.

For traders, keeping an eye on the strong support near 3381 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, LALPATHLAB current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying LALPATHLAB and the CMP of 3504.95 with a stop loss of 3381 for the target of 3700.